Yolanda Díaz’s SMI rise will cost companies an ‘extra’ 10 million in prices until the end of the year

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Although the increase in the minimum wage (SMI) 15 euros per month (up to 965) is already agreed with the unions (but without an agreement with the employer), the Government takes its approval in stride. You have decided to leave the approval of the corresponding decree for the Council of Ministers next week, although the increase will have retroactive application from September 1.

Meanwhile, the project of the royal decree to raise the SMI has been subjected to public scrutiny, with its corresponding regulatory and economic impact analysis report. This document breaks down, for example, the expected impact of this measure on the Social Security income field, thanks to the increase in the contribution bases generated by the rise in the SMI and that will have to be paid by companies or employers.

According to the document and sources consulted by the Government, the amount that the entrepreneurs who will have to pay for the increase in the contribution bases it will be of an additional 9.75 million euros, at least, for the months of September, October, November and December.

This is the calculation of the increase in income for Social Security for workers of the General Regime without special systems. The number of beneficiaries from the increase in the SMI of this group is 934,997, which have an average contribution base in 2021 of 854.91 euros per month.

The increase in the contribution bases will also be noted in the Special System for Employed Agricultural Workers, whose prices will generate an additional 1.28 million euros until the end of 2021.

Impact on SEPE

Meanwhile, the Special System for Household Employees will add an additional 1.56 million euros and 1.84 million more will enter Social Security through the contribution bases.

On the other hand, the State Public Employment Service (SEPE) will have to increase its entry for the contributions it pays to recipients of unemployment benefits (subsidy and contributory benefits) due to the rise in the SMI. You will have to pay about 3.30 million more.

That is, just because of the increase in the contribution bases, Social Security will enter between September and the remainder of the year 17.7 million euros.

The measure will also have an effect on public subsidies, although in this case the impact has not been calculated for four months, but for full 2022. In this context, public spending will have to increase by 25.8 million euros. Although this, presumably, will have to be corrected in the face of the rise in the SMI next year.

José Luis Escrivá, Minister of Inclusion, Social Security and Migration, and Yolanda Díaz, Second Vice President of Labor and Social Economy.

José Luis Escrivá, Minister of Inclusion, Social Security and Migration, and Yolanda Díaz, Second Vice President of Labor and Social Economy.

The normative impact text includes how much the subsidies will remain after the rise in the SMI, an indicator to which they are linked. Those that are due to unemployment will go (such as the exhaustion of contributory benefit for those over 52 years of age) from the current 712.50 euros per month to 719.63.

The increase on the subsidy for temporary workers of the special agrarian system of the Social Security of Andalusia and Extremadura will also be applied, which is equivalent to one hundred percent of the SMI.

Presumably, these impacts will increase in 2022. By then, the Government has committed with the UGT and CCOO to raise the SMI again, although there is no closed figure on the table. With everything, during the past week, the unions assured they would not fall below 1,000 euros per month.

That is, 35 euros more once the increase in the minimum wage is approved next week.


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