Spanish Minimum Wage Rises 1.5% for 2010

Zapatero raises Minimum WageIt was agreed today by the Spanish Cabinet, that the minimum wage will be set at €21,11 per day or €663,30 per month, and calculated annually should never be less than €8866,20.

For casual and temporary workers, whose services to the same company shall not exceed 120 days, the wages may not be less than 30 euros per day. And for domestic workers, the hourly rate is set at a minimum of 4.93 euros.

The increase agreed by the Government for 2010 is half a percent more than initially proposed by the Ministry of Labor and Immigration, but 6.5% less than that demanded by the unions who wanted a rise of 8%. Ministers explained that the increase of 1.5% had been decided taking into account the “difficult” current economic environment.

According to recent data from the National Statistics Institute (INE), more than two million workers earn the minimum wage (SMI), which is the minimum payment a worker may legally receive for a day’s work.

Furthermore, the Cabinet also approved today the aid plan (2000E) to bolster the purchase of new vehicles, it will be allocated a budget of 100 million euros for the whole year, which will help finance the purchase of around 200,000 vehicles.

As in 2009, the state will contribute 500 euros to subsidize the purchase of new vehicles, while manufacturers will be given an extra 1,000€ per sale. Those Autonomous Communities that decide to join the initiative can provide another 500 euros per car, meaning up to 2000 euros contributed for every car sold.

The Prime Minister, José Luis Rodríguez Zapatero, said today that the Spanish automobile industry has a clear future thanks to the effects of the plan.