People Outrage at Government Over 'Trap' with Minimum Wage

The minimum wage is still a hot topic. For the first time, the Minimum Interprofessional Wage (SMI) will pay income tax. This will have consequences for all those who receive the minimum wage.

More specifically, according to Vozpópuli, the extra 50 euros per month that Yolanda Díaz promised could be altered and reduced by half.

According to People's Party, annually, a worker with a minimum wage would receive 700 euros more per month. Of that amount, 346 euros would be allocated to the State through Social Security contributions and income tax. Thus, the net increase that the worker would actually receive would be 354 euros per month.

EDATV has been in the streets to ask about this "trap" that the Government has set for all citizens. Thus, this outlet has been able to gather people's opinions on this issue.

It is important to note that, until now, all those who had a minimum wage were exempt from this tax payment. The last income tax adjustment to the SMI was in 2024. Back then, the exempt minimum was raised to 15,876 euros, equal to the annual salary of that year.

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 in income tax for homeowners who choose to lower rental prices.

In other words, although the Ministry of Labor has expressed its opposition, it acknowledges that the final decision rests with María Jesús Montero.

After it became known that the Treasury would not update the exempt minimum with the SMI, PP leader Núñez Feijóo has accused President, Pedro Sánchez. He accuses him of "cashing in" at the expense of those who receive the SMI, demanding that he rectify and make the necessary adjustments to the income tax.

Fines for Transfers Between Parents and Children

The Tax Agency has focused on these operations to prevent them from being used as a mechanism to evade tax payments.

Starting in 2025, any financial movement between family members that exceeds certain thresholds will be subject to greater scrutiny, with penalties for those who attempt to conceal undeclared donations.

The main objective of the Treasury is to prevent hidden donations from being made without paying the corresponding Inheritance and Gift Tax.