A close-up of a sad man, with a tax office in the background — The tax agency has given bad news to these workers | Europa Press, bowie15 de Getty Images

Camara — The tax agency has given bad news to these workers | Europa Press, bowie15 de Getty Images

Radical Turn of Hacienda: Deals the Final Blow to Many After the Worst Is Confirmed

The Treasury confirms the worst fears for millions of workers, and the decision has stirred up a great deal of controversy.

12/02/2025 17:58:00h

Miguel Cuartas Ortego

For the first time in Spain, workers earning the minimum wage will have to pay the Personal Income Tax (IRPF). The news was confirmed just a few hours ago and has caused a great stir among the top ranks of the Government.

Traditionally, when the minimum wage increased, the Ministry of Finance adjusted the IRPF exemption limit so that these workers wouldn't have to pay this tax. However, on this occasion, Finance has decided not to make this adjustment, and many citizens are outraged by it.

Finance Confirms It: Minimum Wage Earners Will Have to Pay IRPF

With the recent increase in the minimum wage to 1,184 euros per month in 14 payments, the annual salary amounts to 16,576 euros. Nonetheless, it exceeds the previously established exemption threshold of 15,876 euros. This means that, for the first time, those earning the minimum wage will be required to pay IRPF.

Hacienda doesn't soften before these Spaniards | Ptnimages, Europa Press

It is estimated that around 20% of minimum wage earners, mainly single people without children, will be affected and could pay up to 300 euros annually in withholdings. This measure has caused notable controversy within the Government. The Government spokesperson, Pilar Alegría, defends the decision.

The Government Defends Finance's Measure and Yolanda Díaz 'Explodes'

She does so by arguing the importance of "fiscal education" and the fair contribution of all citizens to the support of public expenses. Meanwhile, the Minister of Labor, Yolanda Díaz, has criticized the measure, pointing out that "social justice must start from the top and not from the bottom."

The second vice president of the Government and general coordinator of Sumar, Yolanda Díaz, speaks alongside the Sumar candidates for the European elections at the Córdoba rally. As of June 1, 2024, in Córdoba (Andalusia, Spain)

Yolanda Díaz considers this measure unacceptable | Europa Press

After Tuesday's Council of Ministers, Díaz expressed her discontent, stating that "there was no deliberation or prior communication" about this decision within the Government. Meanwhile, the Government spokesperson, Pilar Alegría, has downplayed the tensions, assuring that the coalition "maintains its stability" and that both parties share goals and projects for the coming years.

This situation has caused concern among workers earning the minimum wage. Although they will receive an increase in their gross salary, part of this increase will be absorbed by tax obligations, reducing the positive impact on their net income.

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