SMI 2026: approved increase, amounts and effects on payroll

What changed: official SMI 2026 increase

The Government has approved the 2026 statutory minimum interprofessional wage (Salario Mínimo Interprofesional, SMI). According to the official publication in the BOE, the SMI for 2026 is set at 1,221 EUR per month when paid in 14 payments, which equals 17,094 EUR per year.

This article explains what those amounts mean in practice for employees in Spain, how the increase is applied in payroll (nómina), and which elements of a pay slip are affected. All figures below are anchored to the official BOE notice (see Official sources).

Official amounts (2026)

• SMI 2026: 1,221 EUR per month in 14 payments.
• Annual SMI (14 payments): 17,094 EUR per year.

These figures are the legal minimum wage for workers in Spain in 2026 as established in the BOE. Employers must ensure that workers performing full-time work under the general SMI payment system receive at least these amounts aggregated over the year.

How the 14 payments system works

In Spain the SMI may be paid in 12 or 14 instalments depending on contract and collective agreement. The 14-payments model means the annual salary is split into 12 monthly salaries plus two extra payments (usually June and December). Under the 14-payment method the monthly gross amount for a full-time worker under SMI is 1,221 EUR.

If an employer pays in 12 monthly instalments instead of 14, the monthly gross figure will be higher (annual SMI divided by 12). Payroll must respect the total annual minimum (17,094 EUR) regardless of how instalments are split.

Immediate payroll implications for employees

• Gross salary: Employers must update gross contracts or payroll rules to ensure annual pay is at least 17,094 EUR for full-time jobs (or the proportional equivalent for part-time).
• Social Security contributions: Social Security bases and contribution percentages are applied to the gross amount recorded on the payroll. The official maximum contribution base relevant for 2026 is 5,101.20 EUR/month (this is the maximum base for certain Social Security contingencies; lower amounts apply to most SMI salaries). Employer and employee quotas will be calculated from the applicable contribution bases for each worker.
• Withholding (IRPF): Income tax withholdings depend on each employee’s personal situation (marital status, children, other income, deductions). A higher gross salary increases the base for withholding calculations but does not by itself determine the exact withholding percentage. Withholding must be computed according to Agencia Tributaria (AEAT) tables and the employee’s data.

Note: In our internal calculations we use an employee MEI rate of 0.15% where applicable (value provided for our simulators). If you need precise withholding figures, compare the payroll result with the AEAT withholding tables or consult your payroll department.

Employer costs and budget planning

When the SMI rises, employers must consider:

• Increased gross wages for any employees previously paid at or near the minimum.
• Corresponding increases in Social Security employer contributions (the employer’s share is calculated on the same contribution base as the gross wage). The exact employer quotas depend on the worker’s contract and the applicable contingencies; consult your social security advisor or the official Seguridad Social rates for detailed percentages.
• For part-time or irregular-hour workers, the employer must recalculate the proportional minimum: the SMI is applied pro rata to the hours actually worked.

Because the SMI increase changes the baseline for many collective agreements and internal salary scales, some employers update salary tables across several bands to preserve internal differentials.

Specific situations

• Part-time workers: the SMI amount is applied proportionally to the contracted hours. Employers must ensure the pro rata annual amount meets or exceeds the pro rata SMI.
• Multiple concurrent contracts: if an employee has more than one employer, each contract must comply with the minimum for the hours worked under that contract; total earnings may affect tax withholding and social benefits.
• Temporary contracts and training contracts: legal minima apply but can be governed by special rules or collective agreements; verify with the applicable convenio colectivo and legal provisions.

What changes for net pay (take-home pay)?

Net pay is the result of gross salary minus employee Social Security contributions and income tax withholdings. An SMI increase raises gross salary, so in absolute terms net pay will usually increase for workers previously at the minimum. However:

• Employee Social Security contributions rise proportionally with gross pay and reduce the net increase.
• Withholdings may rise depending on personal circumstances, which can affect the net improvement from the SMI increase.

Because withholding depends on individual circumstances, the exact net change varies. Use a payroll calculator or ask your employer to run a simulation with your data.

Practical checklist for employees

• Check your contract or payroll to confirm whether you are on a 12- or 14-payment scheme and that your annual gross salary equals at least 17,094 EUR for full-time.
• Request an updated payslip or simulation from HR or payroll showing the new gross and net amounts.
• If you are part-time, verify the pro rata calculation on your contract.
• If you notice discrepancies, raise the issue with your employer or with the labour authority (Inspección de Trabajo) if necessary.

Calculator CTA

Use our net-salary calculator to estimate how the 2026 SMI increase affects your take-home pay: enter your gross salary, payment frequency (12 or 14 payments), and personal withholding data. Note: the tool offers an informative simulation — compare withholding results with Agencia Tributaria (AEAT) official guidance.

Official sources

• BOE: SMI 2026 (official text): https://www.boe.es/buscar/act.php?id=BOE-A-2026-3815
• For withholding rules and official IRPF tables consult Agencia Tributaria: https://www.agenciatributaria.es
• For Social Security bases and employer/employee contribution rules consult Seguridad Social: https://www.seg-social.es

Spain-focused disclaimer

This article is focused on Spain and explains the SMI amounts and payroll effects for 2026 based on the official BOE publication. It provides general information and examples for orientation only. Payroll results depend on individual circumstances, collective agreements and sectoral rules; always compare any simulation with official sources (AEAT, Seguridad Social) or consult your payroll department. This is not legal or tax advice.