Spain raises minimum wage for short-term contracts, but nuances remain

Spain's minimum wage is set to increase for 2026, impacting workers across various sectors. The updated regulations, published in the Official State Gazette (BOE), introduce specific provisions for short-term contracts, a move designed to provide greater financial security for those in precarious employment.

New rules for temporary workers

The key change? A minimum daily wage of €57.82 for temporary contracts lasting under 120 days with the same company. This aims to ensure these workers receive a fair share of compensation, including proportional payments for holiday pay, weekends, and public holidays – aspects often overlooked in short-term arrangements.

The BOE confirms a general minimum wage increase of 3.1%, bringing the monthly minimum to €1,221 paid in 14 installments, totaling €17,094 annually. However, this figure doesn’t tell the whole story.

The daily minimum wage stands at €40.70, while those working part-time will receive a proportional amount based on their hours. Hourly workers will be entitled to the hourly minimum or a proportional daily rate.

What does this mean for you?

This update is particularly relevant for sectors like agriculture, hospitality, and retail, where short-term contracts are commonplace. Previously, workers on these contracts might not have received full compensation for holiday pay or public holidays, despite working considerable hours.

It's worth noting that the minimum wage applies to monetary compensation only. Benefits like meals or transportation provided by the employer do not reduce the amount of the minimum wage. Similarly, additional pay for overtime or seniority will not lower the base minimum.

What to do if you're not paid correctly

If your employer isn’t adhering to the new minimum wage regulations, the first step is to formally request a correction in writing, referencing the BOE's publication or the relevant Royal Decree. If the issue persists, seeking advice from a union or legal professional is advisable. You have one year to claim back any unpaid amounts.

Legal action is an option, and successful claims can result in back pay, potentially with interest for delayed payments. The BOE's publication isn't just a formality; it's the legal bedrock for these changes.

The government's move reflects a growing awareness of the challenges faced by workers in the gig Economy and temporary employment, a sector often vulnerable to exploitation. The ripple effect of this adjustment will be felt across industries, prompting a reevaluation of compensation practices.

This isn't just about a number; it's about restoring dignity and financial stability to a workforce frequently relegated to short-term, often precarious, work.