- The BOE of February 19, 2026 publishes Royal Decree 126/2026, of February 18. The 2026 SMI increases by 3.1% to 1,221 euros per month in 14 payments, with retroactive effects from January 1
- Royal Decree 126/2026, of February 18, increases the Minimum Interprofessional Wage (SMI) for 2026 by 3.1%, up to 1,221 euros per month in 14 payments, exempt from personal income tax (IRPF) according to the official press release
The new amount will apply retroactively from January 1, 2026, and is the result of the agreement with the CCOO and UGT trade unions in the Social Dialogue Table, from which the employers’ association withdrew.
To take into account with the agreed increase, companies must adapt the remuneration of workers whose total compensation, excluding non-compensable bonuses, falls below the new minimum amounts set for 2026.
SMI AMOUNTS FOR 2026
The main reference set for 2026 is 1,221 euros per month in 14 payments, which represents a total of 17,094 euros per year and an increase of 37 euros per month compared to the 2025 SMI, meaning 518 euros more per year.
Calculated over 12 payments, the SMI stands at 1,424.5 euros per month. The value per effective hour worked, used as a reference for specific groups and contract types, is set at 9.55 euros per hour.
The final amounts for the 2026 SMI enter into force the day following its publication in the “Boletín Oficial del Estado” and are effective during the period between January 1 and December 31, 2026, thereby proceeding with the payment of the minimum wage established therein with effect from January 1, 2026.
DOMESTIC WORKERS AND SHORT-TERM CONTRACTS
The press release specifies the following thresholds for specific groups:
Hourly external domestic workers. They may not receive less than 9.55 euros per effective hour worked in hourly contracts.
Fixed-term contracts of less than 120 days. Workers with this type of contract may not receive an amount lower than 57.82 euros per legal working day in the activity.
ASPECTS PENDING LEGISLATION
The announced regulation regarding the non-absorption or compensation of specific bonuses has not been published. Current regulations maintain the same criteria for compensation and absorption.
Source: Iberley and BOE