January 2026
Interpretative guidance from the Directorate-General of Labour following the repeal of the extension established in rrticle 10 of Royal Decree-Law 16/2025, of 23 december
Royal Decree 87/2025, of 11 February, set the minimum interprofessional wage (SMI) for 2025. Subsequently, Article 10 of Royal Decree-Law 16/2025, of 23 December, extended its validity until the adoption of the royal decree establishing the SMI for 2026.
However, on 27 January 2026, the Spanish Congress of Deputies approved the repeal of Royal Decree-Law 16/2025, formally eliminating the provision establishing the extension.
In light of interpretative doubts arising from this repeal—particularly regarding the potential temporary absence of an applicable minimum wage—the Directorate-General of Labour (DGT) issued, on 28 January 2026, an interpretative guidance clarifying the legal scope of the situation created.
The administrative guidance is based on a clear premise: the repeal of the extension does not imply the disappearance of the minimum interprofessional wage nor does it authorise the establishment of salaries below the 2025 SMI.
Key Points of the Guidance:
I. The SMI as a Legal Mandate for Annual Fixing
The DGT recalls that Article 27 of the Workers’ Statute obliges the Government to set the SMI annually. This legal mandate is directly linked to the right to adequate remuneration (Article 35 of the Spanish Constitution) and is reinforced by the European Social Charter and EU legislation on adequate minimum wages.
In this context, the temporary absence of a formal extension cannot be interpreted as the elimination of the SMI or as the absence of a legal minimum wage floor.
II.Existing Contracts: Maintenance of Wage Levels
Regarding existing employment contracts, the guidance is explicit: the repeal of the extension does not allow for salary reductions nor the nullification of amounts linked to the SMI.
Wages already being paid are considered contractualised and are therefore legally unaffected by the repeal of Royal Decree-Law 16/2025.
III. New Hires During the Transitional Period
For new hires during this period, the DGT affirms that salaries should not be set below the 2025 SMI, in accordance with constitutional mandates and Spain’s international commitments on adequate minimum wages.
IV. No Indirect Mechanisms to Reduce Wages
The guidance explicitly rules out any circumvention of the SMI threshold through indirect mechanisms, such as the exercise of ius variandi, substantial modifications of working conditions, or temporary inapplicability of collective agreements.
V. Effects of the Future SMI 2026
The royal decree that ultimately sets the SMI for 2026 will, as in previous years, have retroactive effect from 1 January 2026.
VI. Administrative Enforcement
The guidance reminds that it is the responsibility of the Labour and Social Security Inspectorate to ensure compliance with labour law, including the obligation that remuneration not fall below the legally applicable minimum threshold.
Conclusion
The administrative guidance excludes any interpretation that would treat the repeal of the extension as creating a regulatory vacuum regarding the minimum wage. During this period, the SMI remains a binding legal floor, both for existing contracts and new employment agreements.
Gemma Fabregat
Of Counsel
