In full negotiations with the government, SMEs warn that they will be the ones who “suffer” the most from a new rise in SMEs that will “weigh down” their competitiveness
That same Monday, the committee of experts advising the Department of Labor presented its opinion on what the new increase in the minimum wage (SMI) should be in 2023. All with the target imposed by Europe that the SMI at 60% of the average salary in Spain in the coming years. However, the employers’ association of small and medium-sized enterprises (Cepyme) believes that another increase in the minimum wage will “increase the competitiveness” of SMEs and harm them because they are the ones with the least economic capacity.
The experts propose an increase that fluctuates between a range of 4.6% and 8.2%, i.e. it would mean increasing the SMI between 46 and 82 euros per month – currently at 1,000 euros in 14 payments – to place it between 1,046 euros and 1,082 euros gross. An increase in any case less than the revaluation of pensions and that would not be able to prevent the loss of purchasing power of this group of approximately two million working people.
But this increase would mean that the SMI would be well above the 60% average salary recommended by the European Social Charter in many Spanish cities, just one of the demands of employers who doubt the effectiveness of the same SMI across Spain. Specifically, the report published by Cepyme indicates that in more than 14 provinces the minimum wage will be above 70% of the average for its territory and in 22 provinces above 65%.
The SME employers indicate that the hotel sector would be the sector most affected by another increase in the SMI to 60% of the average salary, as it would lead to 96% of the average salary in the industry, making the salary differences would be homogenized of the same.
They also point out that these increases affect collective bargaining, making many agreements in force “obsolete” and thereby disrupting many of the 4,500 collective bargaining tables being formed in Spain.
Since 2017, the SMI has increased by 41% to 54.8% of the average salary, while Germany still has it at 41%; France at 47% and Ireland at 46%, according to Eurostat data. “An increase in the SMI to 60% of the average salary will increase this distance with our European counterparts and therefore reduce the competitiveness of the economy and the Spanish company,” they say from Cepyme.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
