Spain: Publication of new national minimum wage for 2023

Royal Decree 99/2023, of February 14, 2023, stipulating the national minimum wage for 2023 has been published in the Official State Gazette. It entails an 8% rise with respect to 2022, and establishes the following amounts:

These amounts only include remuneration in cash —remuneration in kind may not lead to a reduction under any circumstance— and are understood to refer to the statutory working hours for each activity, meaning that the minimum wage will be applied pro rata if fewer hours are worked.

The royal decree also regulates how the offset and absorption mechanism works in cases where workers’ remuneration, taken as a whole and calculated over a year, exceeds €15.120, which means that these payments may be offset against the income received by workers in respect of all items, calculated over a year, and relating to full-time working hours in accordance with the law or collective bargaining agreements, arbitral awards and individual employment contracts in force at the time the royal decree was published.

The royal decree will enter into force on February 16, 2023 but the new minimum wage amounts will take effect from January 1, 2023.