Spain to raise minimum wage by 8% in 2017

Spain’s minority conservative government on Friday approved raising the country’s minimum monthly wage by 8.0 percent in 2017 to 825.5 euros ($876) as demanded by the main opposition Socialists.

Finance Minister Cristobal Montoro said the rise — approved at a weekly cabinet meeting — was “negotiated with other political groups”.

The minimum wage will rise from 764.4 euros to 825.5 euros, an increase of 61.1 euros.

That is higher than the monthly minimum wage of 618 euros in neighbouring Portugal but far lower than the minimum wage of 1,467 euros in France.

Prime Minister Mariano Rajoy was sworn in for a second term last month but this time around his Popular Party lacks a majority in parliament and needs to scrabble for approval from other opposition parties further to the left to win approval in parliament for legislation.

The Socialists had demanded a rise in the minimum wage to back the government’s budget for 2017, which will need to include measures to reduce public deficit targets agreed with the European Union.

Hernando said the rise was an “indispensible condition” for the party’s support for the 2017 budget. (AFP)