The Spanish government aims to increase the minimum wage by 4% in 2024, on top of the initial offer of 3.5% by employers, Reuters reported, citing a senior government source.

Pedro Sánchez during the vote on the institution of his new governmentPhoto: Europa Press/ABACA/Abaca Press/Profimedia

The government is currently in talks with unions and employer representatives over the increase, and a deal is expected to be announced in December.

Lower-than-expected annual inflation of 3.2% in November eased pressure on wages in Spain, which raised the minimum wage by 8% in 2023 to €1,259 a month to offset annual inflation of 8.2% in 2022. year

Unions and employers have already agreed to raise all wages by 3% in 2024, with an additional 1% if inflation in 2023 exceeds 3%.

The government said on Wednesday that pensions will rise by 3.8% next year.

The newly formed coalition government is divided over plans to reform the unemployment benefits system, a condition imposed by the European Union for the payment of 140 billion euros allocated to Spain as part of a recovery plan after COVID-19.

Labor Minister Yolanda Díaz, who is also leader of the Sumar party (coalition partner), wants to increase unemployment benefits, while Economy Minister Nadia Calvino of the Socialist Party wants cuts.