How much does the SMI rise in 2026
The SMI for 2026 is set at €1,221 gross per month in 14 payments, according to Royal Decree 126/2026 published in the BOE on 19 February. In total, that is €17,094 gross per year, €37 more per month than in 2025, when it stood at €1,184.
If you prorate the 14 payments over 12 months, the minimum wage comes to €1,424.50 per month. This is the figure usually used to compare with countries that pay in 12 payments, such as Portugal or France.
What the minimum wage is
It is the legal pay floor set by the Government each year after consulting with unions and employers. No full-time worker can be paid below it, even if their collective agreement says otherwise.
The increase applies retroactively from 1 January, so if it comes into force mid-year, the company must regularise the payslips for the previous months.
Who it applies to and how it is calculated
The SMI applies to all employees, whether full-time or part-time. For part-time work it is prorated according to hours worked, and for domestic employment a minimum wage per effective hour is set.
Key points
- Full-time: €1,221 per month in 14 payments
- Part-time: proportional to hours worked
- Domestic workers: minimum per effective hour worked
- Temporary and seasonal workers: minimum per legal working day
SMI and the real cost of hiring in Spain
Gross pay is only the base. On top of it, the company pays Social Security contributions of around 30%. A worker on the SMI costs the company close to €1,590 per month including contributions.
On the employee's side, their share of Social Security contributions (around 6.4%) and the personal income tax withholding are also deducted from the gross figure. So it is worth not confusing the gross SMI with what actually reaches the account.
The Spanish SMI in the European context
Spain sits in the middle range of Europe: above Portugal (€870-920 per month) and below France (around €1,800) and Germany (about €2,400 per month).
If your plan is to hire abroad, compare the total cost of each country, not just the minimum wage. Contributions, working hours and taxation vary as much as, or more than, the SMI itself.
