Yolanda Díaz, the second deputy prime minister and minister of labor in Spain, is set to sign an agreement with the secretaries-general of the unions CCOO and UGT on Monday, which will raise the minimum interprofessional wage (SMI) by 3.1% to 1,221 euros per month, effective retroactively from January 1 of this year. This agreement aims to support workers amid rising costs of living and is a crucial part of the government’s economic policy.

Prime Minister Pedro Sánchez will attend the signing ceremony, marking his first appearance at this event since 2020, when it was held at the Palacio de La Moncloa. The presence of the prime minister underscores the government's commitment to labor issues and may enhance the significance of the event in the public eye. This adjustment to minimum wage is reflective of the Spanish government’s broader efforts to address economic disparities and support lower-income earners.

Following the signing, the government will need to ratify the wage increase in the Council of Ministers, thereby making it official. This development may influence ongoing discussions about workers' rights and social policies in Spain, as well as the government's stance in the face of economic challenges. The move is expected to receive mixed reactions from businesses concerned about payroll costs and labor groups championing fair wages for workers.