Workers earning the minimum wage will pay income tax if the Government does not approve another fiscal adjustment in the Permanent Deputation or in 2027

The Spanish government plans to raise the Minimum Interprofessional Salary (SMI) before the upcoming elections, which will require a legal reform for tax exemption on income tax. The SMI has increased by 66% from 2018 to 2026, but its tax exemption needs congressional approval. The Ministry of Labor consults experts to determine the new SMI, with a deadline for recommendations set for November 1. The government aims for a tripartite agreement but can unilaterally set the amount if consensus is not reached. Adjustments to tax regulations have been made to ensure SMI recipients are not taxed, but further legal changes are necessary for future increases.