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What it is

Spain raises the minimum wage and creates a new income indicator

BOE step 7 of 7 · Passed

It is a royal decree-law. It was introduced on 25 June 2004. Introduced by: Gobierno.

Official title: Royal Decree-Law 3/2004, of June 25, for the rationalization of the regulation of the interprofessional minimum wage and for the increase of its amount.

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Source: Congreso de los Diputados, file 130/000003· updated 11 Nov

Automatic summary, not yet reviewed

  1. The minimum wage (SMI) is raised by 6.6% to recover the purchasing power lost between 1996 and 2004. It is set at 16.36 euros per day, 490.80 euros per month or 6,871.20 euros per year, and applies from July 1 to December 31, 2004.
  2. The minimum wage is no longer used for purposes unrelated to work and is limited to its role as a wage guarantee. Its link is kept only for labor cases, minimum Social Security contribution bases, and the requirements for certain pensions and benefits.
  3. A new public indicator of multiple effects income (IPREM Public indicator of multiple effects income: a reference figure used to decide who can access public benefits and in what amount.) is created. It replaces the minimum wage as an income reference in State rules, and its amount will be set each year in the State Budget Act.
  4. Unemployment benefit amounts are now tied to the IPREM as of July 1, 2004. The income requirements to get and keep those benefits remain tied to the minimum wage.
  5. New minimum contribution bases are set for the different Social Security schemes, such as the general scheme, the farm workers scheme, the self-employed scheme and the domestic workers scheme.
  6. In collective agreements in force and in private contracts and agreements predating the rule, the new minimum wage amounts do not apply automatically, unless the parties agree otherwise.

Who it affects

  • Workers earning the minimum wage: Their pay goes up as of July 1, 2004.
  • People receiving unemployment benefits and subsidies: Their amounts are now calculated using the IPREM, but the minimum wage increase is extended to them.
  • Companies: They must apply the new minimum wage and the new minimum Social Security contribution bases.
  • Self-employed and domestic workers: They have new minimum contribution bases under their special schemes.
  • Autonomous communities and local entities: They may use the IPREM as an income reference, but are not required to do so.

Words worth knowing

Salario mínimo interprofesional (SMI)
The minimum pay any worker must receive for their work, whatever the activity.
IPREM
Public indicator of multiple effects income: a reference figure used to decide who can access public benefits and in what amount.
Bases de cotización
The amount on which Social Security contributions are calculated.
Real decreto ley
A rule with the force of law that the Government can pass urgently in situations of extraordinary need.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced25 June 2004Someone registers the text in the Congreso.
  2. Admitted29 June 2004The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenary29 June 2004All 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 4 official steps on a timeline
Jun 200411. 25 June 2004: Presentación22. 29 June 2004: Calificación33. 29 June 2004: Pleno Convalidación desde 29/06/2004 hasta 21/07/200444. 21 July 2004: Concluido - (Convalidado) desde 21/07/2004 hasta 27/07/2004

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

Published in the BOE: Royal Decree-Law 3/2004, of 25 June, for the rationalization of the regulation of the interprofessional minimum wage and for the increase of its amount.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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