SMI 2026
€1,221
a month, 14 payments
Per year
€17,094
gross
Take-home
€1,142
per payment, no IRPF
2027 decision
Early 2027
backdated to 1 Jan
Real Decreto 126/2026 and RDL 5/2026, checked 7 October 2026. Take-home is PayMetric Labs' own calculation.
SMI 2026 and 2027: gross, tax and what you keep
| Year | Monthly (14) | Yearly | Social Security | IRPF | Take-home a year |
|---|---|---|---|---|---|
| 2025 | €1,184 | €16,576 | €1,077 | €0 | €15,499 |
| 2026 (now) | €1,221 | €17,094 | €1,111 | €0 | €15,983 |
| 2027, +3% | €1,258 | €17,612 | €1,145 | €357 | €16,111 |
| 2027, +3.5% | €1,264 | €17,696 | €1,150 | €414 | €16,131 |
| 2027, +5% (CCOO's ask) | €1,282 | €17,948 | €1,167 | €588 | €16,193 |
Single employee, no children, general State and regional scale, 6.5% employee Social Security. 2027 rows assume the IRPF deduction stays at its 2026 level and are PayMetric Labs' own scenarios, not forecasts.
Earn more than the SMI?
See your own IRPF and Social Security, by region.
Why the SMI is tax-free in 2026, and may not be in 2027
Since 2025, a special IRPF deduction for low work income cancels the tax on the minimum wage. For 2026, Real Decreto-ley 5/2026 set it at €590.89 for anyone whose gross work income is €17,094 or less, exactly the 2026 SMI, falling by 20 cents for every euro above that (idealista).
The threshold is written into the law as a figure, so it doesn't move with the SMI by itself. If the 2027 SMI rises and the deduction doesn't, minimum wage earners start paying IRPF. On our +3.5% scenario, gross pay rises €602 a year, but take-home only €148: €414 goes in IRPF and €39 in Social Security.
The government updated the deduction alongside the SMI for both 2025 and 2026, so it may do so again. Check whether the 2027 decree comes with a matching change to the IRPF; we'll update this page when it does.
How the SMI 2027 gets decided
The government sets the SMI each year by Real Decreto after consulting unions and employers, taking into account prices, productivity, the labour share of national income and the economic situation (article 27 of the Estatuto de los Trabajadores). An expert committee advises the Labour Ministry, working to the target of 60% of the average full-time wage under the European Social Charter. The Ministry said it would convene the committee in October 2026 (Press Digital).
Forecasts put the 2027 rise at 3% to 3.5% (Wolters Kluwer), while CCOO is asking for more than 5%. The 2026 rise was 3.1%, approved on 17 February 2026 and backdated to 1 January (BOE summary).
What to check in 2027
- Your total annual pay, not just the base salary: the SMI is compared with everything you earn in the year, including the two extra payments.
- In 12 payments, the 2026 SMI is €1,424.50 a month. If your contract prorates the pagas extra, compare with that figure.
- When the 2027 decree is published, your employer owes the difference from 1 January as arrears (atrasos).
- If your pay is above the SMI, the rise can be absorbed by complements you already get, unless your convenio says otherwise.
- If IRPF appears on an SMI payslip in 2027, check whether the deduction was updated and whether your withholding rate is right.
SMI 2027: questions
What is the SMI in 2026?
€1,221 gross a month in 14 payments, €17,094 a year, set by Real Decreto 126/2026 with effect from 1 January 2026. In 12 payments it is €1,424.50 a month. After Social Security you keep about €1,141.63 per payment, with no IRPF.
How much will the SMI be in 2027?
It hasn't been decided. The Labour Ministry is convening its expert committee in October 2026. Forecasts point to 3% to 3.5%, which would mean about €1,258 to €1,264 a month, while CCOO is asking for more than 5% (above €1,282). Those figures are PayMetric Labs' own scenarios.
When will the 2027 SMI be approved?
Probably in January or February 2027. The 2025 and 2026 decrees were approved in February and applied back to 1 January, so employers paid the difference as arrears (atrasos) in a later payslip. Until the decree is published, the 2026 rate stays in force.
Do you pay IRPF on the SMI?
Not in 2026. A special deduction of €590.89 cancels the tax for anyone whose work income is €17,094 or less, exactly the 2026 SMI. It shrinks by 20 cents for every euro above that. If the SMI rises in 2027 and the deduction isn't raised with it, SMI earners would start paying some IRPF: about €414 a year at +3.5%.
Why does the SMI rise barely change my take-home pay?
Two reasons, if the IRPF deduction stays at its 2026 level. You pay 6.5% Social Security on the rise, and the deduction shrinks by 20% of every euro above €17,094 while the work income reduction also tapers. On our +3.5% scenario, gross pay rises €602 a year but take-home only €148. If Hacienda updates the deduction, as it did in 2025 and 2026, you'd keep almost all of the rise.
Can my employer absorb the SMI rise?
Often, yes. If your total annual pay is already above the new SMI, the rise doesn't have to increase it: employers can offset it against complements above the minimum (compensación y absorción), unless your convenio colectivo says otherwise. It only has to show up if your total pay would fall below the new SMI.
Does the SMI apply to part-time and temporary work?
Yes, in proportion to your hours. Part-time pay can't be below the SMI for the share of the full-time working day you work. Temporary and seasonal workers who work fewer than 120 days for the same company have a daily minimum that includes the share of holidays and the two extra payments.
Methodology and limits
The 2026 SMI is from Real Decreto 126/2026; the IRPF deduction from Real Decreto-ley 5/2026 (LIRPF additional provision 61). Article 27 of the Estatuto de los Trabajadores sets out how the SMI is decided. Checked 7 October 2026.
Take-home is PayMetric Labs' own calculation from our Spanish tax engine for a single employee with no children on the general scale; regional scales and personal circumstances change it. 2027 rows are our scenarios until the decree is published. General information, not legal or tax advice.