The Treasury will update the minimum wage deduction to 1,030 euros so that its recipients do not pay income tax.

The Spanish government plans to increase the minimum wage to €18,004 in 2027 and adjust income tax deductions to ensure recipients do not pay taxes. The current deduction of around €590 will rise to approximately €1,030 to prevent workers from facing tax liabilities. This adjustment aims to maintain the net income of minimum wage earners, who would otherwise owe around €600 in taxes. Experts and unions criticize the annual adjustments, advocating for a more stable solution to avoid yearly tax corrections. The debate over the taxation of minimum wage earners continues, with calls for a broader fiscal reform that addresses higher income brackets as well.