Spain's 'Robin Hood' budget: More tax for wealthy, wages up and free pre-school places
Monday, October 15, 2018 @ 2:04 PM
SPAIN'S president Pedro Sánchez and leader of left-wing Podemos, Pablo Iglesias have finally shook hands on the details of next year's State budget after a long meeting following weeks of debate.
Iglesias' support is crucial for Sánchez to be able to get the budget through Parliament, given his minority government of just 84 seats out of 351, so the compromises reached between the two party heads are a major step forward.
If enough votes in favour allow the 2019 budget to become reality, this is what residents in Spain can expect from January 2019.
Minimum wage to rise to €900
Unlike the previous PP-led government, which planned to increase the minimum wage for a full-time 40-hour week to €850 a month by the year 2020, Pedro Sánchez and Pablo Iglesias have agreed to up it to €900 from the start of 2019. Minimum wages are referred to in 14-month years – with a double salary at Christmas and in August – so for the majority who earn 12 monthly salaries a year, this means they cannot be paid less than €1,050, or the pro-rata equivalent if they work part-time.
It is not clear if this figure is gross or net, but on a before-tax wage of €900 a month in 14 payments or €1,050 in 12, based upon an unmarried adult with no dependants and not registered disabled, the monthly take-home would be €964.50 in 12 payments or €884 in 14.
Podemos wanted the minimum wage to be €1,000 rather than €900, and the aim is to work towards this for 2020.
Read more at thinkSPAIN.com