Guide to the SMI, collective agreements and IRPF
What the Spanish minimum wage (SMI) is, how it relates to your collective agreement, and why your monthly IRPF withholding is not the same as your annual tax bill. Includes a quick check: does your salary meet the SMI?
Does your salary meet the SMI?
Enter your monthly gross salary and your working hours to check.
What the SMI is
The salario mínimo interprofesional (SMI) is the wage floor the Spanish government sets every year by Real Decreto (art. 27 of the Workers' Statute). No employee can legally be paid less, whatever their agreement or contract says. For part-time work it applies in proportion to the hours worked.
What a collective agreement is
A convenio colectivo is the agreement negotiated between employers (or their association) and unions for a sector or a specific company. Among other things, it sets its own salary table by professional category, which normally improves on the SMI.
How they interact (art. 3.3 ET)
Art. 3.3 of the Workers' Statute states that the SMI always prevails: if an agreement's table falls below the SMI after a rise the agreement has not yet incorporated, the salary is still raised to the current SMI in practice, until the agreement publishes an updated table.
Monthly withholding vs. annual IRPF
The withholding shown on your monthly payslip is a payment on account, calculated with the national scale. The actual IRPF is determined in the annual tax return, which includes the regional bracket that varies by autonomous community. That is why you can end up owing more or getting a refund.
Legal references: art. 27 and art. 3.3 of the Workers' Statute (SMI); arts. 80 to 83 of the IRPF Regulation (general withholding procedure).
Related tools
Frequently asked questions
Is the SMI the same for part-time work?
Not in absolute euros: it applies in proportion to the hours or the percentage of working time compared to full-time.
Can my agreement pay less than the SMI?
Not in practice. If its table falls below the SMI after a rise, the salary is still raised to the current SMI (art. 3.3 ET) until the agreement is updated.
Why doesn't my monthly withholding match what I pay in my tax return?
Monthly withholding is a payment on account using the national scale; the final annual amount adds the regional bracket and can result in a refund or an additional payment.