Would companies support a further increase in the inter-professional minimum wage? One in ten has changed their mind in the past year
Since 1980, the Minimum Interprofessional Salary (SMI) in Spain has increased every year. At that time, the SMI in our country was € 136.9. The biggest increase in this amount was in 2019, when the government agreed to an increase of more than 22% (from € 735.90 to € 900). The last growth of the SMI took place in February 2020, reaching 950 € / month (14 installments).
Now, since December 2020, the Government has proposed to continue this increase in the SMI, exceeding € 1,200. In recent weeks, however, the Bank of Spain has warned of the possible consequences of this further increase, noting that the latest increase in 2019 resulted in job creation for that year stopping from 0 , 6 and 1.1 percentage points, with a particular impact. among young people and over 45s. On the other hand, the SMI’s Advisory Committee for Analysis issued on June 18 an opinion proposing a maximum increase of 99 euros and a minimum of 61 euros until 2023 in the Minimum Interprofessional Salary (10.4% and 6.4% respectively). , out of the current 950 euros).
Companies change their opinion, but continue in favor of the rise
With all of this data, InfoJobs has released the results of its latest inter-professional minimum wage report, which reveals that 6 out of 10 companies (60%) would agree with the expected increase. If it is true, however, that the difference with the data of last year is eight percentage points: in 2020, 68% of companies “seemed good” to increase the SMI. And, in the current context, companies in general are more wary of the increase in the minimum wage than a year ago.
Thus, for example, 50% of companies now believe that this increase will affect the salary review; when a year ago, this percentage was 40%. Similarly, 39% of companies indicate at this stage that the increase will result in fewer hires within the company, which is twelve percentage points more than in 2020 (27%). In addition, 32% of them stress that the increase in the SMI will encourage the dismissal of employees; a figure which, twelve months ago, was 19%.
“Without a doubt, the effect of the pandemic has had a huge impact on the opinion of companies regarding the increase in SMI, although the data shows that the majority of companies in our country approve of the proposed increase,” he said. declared Mónica Pérez, director. of communication at InfoJobs. “In all cases, the Government must agree with the companies on the viability of this new increase in the SMI and its consequences; since the survival of the same depends on the sustainability of the economy and employment, especially in the current circumstances ”.
Small businesses, the most reluctant
Depending on the size of the company, medium and large companies (> 50 employees) are those who agree the most with the increase in the SMI (70%), while the percentage in the case of small ones drops to 55% . In this sense, 44% of companies with less than 50 employees argue that the new increase will lead to a decrease in hiring, fourteen percentage points more than in the case of medium and large companies (30%).
What should the SMI be?
Asked what the SMI should be, 57% of Spanish companies indicate that it should in no case exceed € 1,200. At this stage, the data are identical to those recorded during the last wave of 2020. Concretely, the average of the responses provided by the companies questioned shows a Minimum Interprofessional Salary of € 1,152. There are also no significant differences according to the size of the companies, given that companies with less than 50 employees have an SMI of € 1,146 compared to € 1,163 for medium and large companies.