Minimum Interprofessional Wage: What is it, how much is it going up and who benefits?

With the new increase in the SMI, working people will receive €5,573 more per year than in 2018. Domestic workers who work on an hourly basis will be paid at least €8.87 per hour.

What is the Minimum Interprofessional Wage?

This is the minimum amount of pay received by the worker in relation to the legal working day. It is regulated annually by the Government, after consultation with the most representative trade union organisations and employers' associations. The minimum wage includes only the monetary remuneration. This wage is understood to refer to the legal working day in each activity. If a shorter working day is worked, it will be paid on a pro rata basis.

What is the amount of the Minimum Interprofessional Wage in 2024?

The Council of Ministers approved on February 6, 2024, the 5% increase of the Minimum Interprofessional Wage for 2024, following the agreement reached with the trade union organisations.

For all activities in agriculture, industry and services, irrespective of the sex and age of the workers, it is set at €37.8 gross per day, or €1,134 gross per month distributed over 14 payments.

This is an increase of €54 per month in 14 payments, i.e. a total of €756 per year.

Is the minimum wage net or gross?

The Minimum Interprofessional Wage refers to the gross wage of workers. The €1,134 per month in 14 payments represents the total amount of the salary, and if the extra payments are prorated, it will be €1,323 per month in 12 payments.

What is the minimum wage for casual, seasonal and domestic workers?

• The salary of temporary workers, and that of seasonal workers whose services to the same company do not exceed 120 days, cannot be less than €53.71 per day.
• In the case of hourly domestic workers, the minimum wage will be €8.87 per hour actually worked.

Does the increase in the minimum wage have retroactive effect?

Yes. The increase to be approved by the Council of Ministers will apply retroactively to 1 January 2024.

How much has the SMI gone up in recent years?

In the previous legislature, the government raised the minimum wage from €735 to €1,080 in 2023, an increase of 47%.

With the increase in the SMI agreed for 2024, the SMI will have increased by 54% since 2018. This is an increase of €54 per month in 14 payments, i.e. a total of €756 per year.

Non official translation