Minister María Jesús Montero Left Without Schedule Due to 'Fever' After Controversial IRPF

The Government of Spain is a powder keg, and the latest political maneuver regarding the increase of the Minimum Interprofessional Wage is proof of that. Everything happened after the decision of the Treasury Department, led by María Jesús Montero, was revealed.

She decided that those who earn the minimum interprofessional wage should also pay the personal income tax (IRPF). This raised blisters among the population and led to an open confrontation within her party, but also with Sumar.

However, on the day she was supposed to be accountable and provide explanations before Congress, Montero did not attend. The newspaper ABC points out that the reason for her absence is "due to fever." The truth is that she also has no events in her Moncloa Agenda.

The fact that she did not attend Congress is something that many have reproached the minister for. At a time when the tension between the Government and its coalition is growing.

The Government's Maneuver with the Minimum Wage: Only 25 Euros More for Employees

According to estimates released by the People's Party, a worker earning the minimum wage will see an increase of 700 euros per month in their salary. However, out of this amount, 346 euros will be withheld by the State through Social Security contributions and the IRPF.

The consequence for the worker will be that the 50 euros more per month that Yolanda Díaz agreed with the unions is not real. The reality is that it will be reduced by half, about 25 euros.

This translates to only leaving 354 euros as real gain for the employee.

This calculation represents the highest scenario, as the fiscal impact will vary depending on each worker's personal situation. Factors such as marital status, the number of dependent children, among others, will be considered.

The problem lies in the fact that, by not adjusting the IRPF threshold according to the Minimum Wage, it will exceed the taxation limit by 2025. Therefore, it will force employees to allocate up to 43% of the planned increase to tax payments.

The measure adopted by the Ministry of Finance responds to the growing revenue derived from the continuous increase of the SMI. Since 2018, this wage has increased by approximately 60%, which has caused more and more taxpayers to be affected.

All this in a crucial context for the stability of public finances due to the reactivation of fiscal regulations.

Meanwhile, Yolanda Díaz has expressed her disagreement with this decision, especially due to its impact on workers with lower incomes. Meanwhile, she promotes a reduction of the IRPF for homeowners who choose to lower the rental price.

In other words, although the Ministry of Labor has expressed its opposition, it acknowledges that the final word belongs to María Jesús Montero.