As stipulated in Article 1 of Royal Decree 1462/2018, of December 21, which establishes the national minimum wage for 2019, the minimum wage for all activities in agriculture, industry, and services, regardless of the worker's sex or age, is set at €30 per day or €900 per month, depending on whether the wage is calculated daily or monthly. These amounts represent a 22.3% increase compared to 2018.

The minimum wage only includes monetary compensation, and in no case may payment in kind lead to a reduction of the full monetary amount of the minimum wage.

This salary refers to the legal working day for each activity, excluding, in the case of the daily wage, the proportional amount for Sundays and public holidays. If a shorter working day is performed, the salary will be prorated.

For the application of the minimum wage on an annual basis, the rules on compensation established in the following articles of said Royal Decree will be taken into account.

The Royal Decree came into force on December 28, 2018 (the day after its publication in the "Official State Gazette") and will be effective during the period between January 1 and December 31, 2019, and therefore the minimum wage established therein will be paid with effect from January 1, 2019.

According to Employment data, the beneficiaries of this increase would be some 1,327,000 salaried workers in the trade, vehicle repair, administrative activities, and service companies sectors, and 700,000 workers in special schemes for Domestic and Agricultural Employees.

However, the Bank of Spain estimates that this 22.3% increase could potentially affect 190,000 jobs in the form of reduced working hours or even contract termination.

It should be noted that the salary increase is exclusively for those workers who earn the minimum interprofessional wage and, therefore, does not represent a generalized increase, since large groups are above that wage.

If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.

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Maria Escoda

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• The minimum wage is increased to 900 euros per month. - January 15, 2019