Interprofessional Minimum Wage (SMI)
New Order or Decree
On February 23, 2022, the Official State Gazette (Boletín Oficial del Estado or BOE) published Royal Decree 152/2022, of February 22, which sets the interprofessional minimum wage (Salario Mínimo Interprofesional or SMI) for 2022, to be paid from January 1 to December 31, 2022. The new amounts, which represent an increase of 3.63% with respect to those provided for in a previous decree, are as follows: (i) EUR 33.33 per day or EUR 1,000 per month, depending on whether the salary is fixed by days or by months, for any activities in agriculture, industry, and services, without distinction of sex or age of the workers; (ii) EUR 47.36 per legal working day for temporary workers and for seasonal workers whose services to the same company do not exceed 120 days; and (iii) EUR 7.82 per hour effectively worked for domestic employees who provide services on an hourly basis, in an external regime, and in accordance with Royal Decree 1620/2011, of November 14.
The RED Mechanism for Employment Flexibility and Stabilization
New Order or Decree
Royal Decree 4/2022 of March 15, 2022, establishes the RED Fund and the transitional rules for its financing and the procedure applicable to the RED Mechanism, which will allow companies to apply for measures to reduce working hours and suspend employment contracts. This decree provides for the creation of the RED Fund for Employment Flexibility and Stabilization regulated in article 47...
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