The increase in the minimum wage to 900 euros will force the salaries of all employees who are below this amount to be reviewed.
For temporary and seasonal workers, a salary of 42.62 euros per legal day is set. Regarding domestic workers, the minimum wage is 7.04 euros per hour.
For SMEs and self-employed workers with employees, this will mean an extra effort, but possible future increases must also be taken into account to bring the SMI in line with the European average. It is logical that we wonder what cost this will entail for small businesses.
This increase represents a 22.2% increase, the highest in the history of the SMI . For many international organisations, such as the European Commission, this means putting aruba email list 38244 contact leads between 70,000 and 80,000 jobs at risk in 2019 and 2020. Other institutions, such as the Independent Authority for Fiscal Responsibility (AIReF), have reduced this amount and put it at around 40,000 fewer jobs than could be created with a more moderate increase.
It is true that an increase in the SMI would not only affect employees with the lowest wages, but also those who were just above them, who would in turn demand wage increases. This would mean an increase in their disposable income that could favour consumption and employment. The
balance between both positions will only be seen over time, since the experiences in other countries with similar measures have not been as worrying as might be deduced from the initial analyses.
Increase in the SMI, the extra cost that SMEs must bear
The reality is that the measure will mean an effort in salaries for small companies. In addition to the increase in the SMI, there is also the increase in Social Security contributions to be paid by the company. Between both concepts, the cost for the company will be at least 16,380 euros per year .
In addition, workers who receive the minimum wage are entitled to receive salary supplements . Some of these may be set based on the base salary and, therefore, an increase in the latter may have a greater impact on salary costs.
For a company that hires four or five workers, the extra cost will be the previous year's salary of another worker. It may seem alarming, but the reality is different.
The truth is that the company will have to update all salaries that are below this amount . And here it can be noted that many salaries under agreement were slightly higher than the minimum wage, and in this sense it will be reflected in the accounts at the end of the year, although the total increase will be less than 22%.
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