This February, the Government published in the Official State Gazette (BOE) Royal Decree 126/2026 in which, in addition to contemplating the increase in the minimum wage for millions of workers, it also introduces a protection mechanism for the most vulnerable incomes. This regulation means that the increase in the Minimum Interprofessional Wage (SMI) will not cause economic distortions or unintended consequences in non-labor areas that use this indicator for their own purposes. In other words, earning a little more for the new SMI will not make you exceed the limit to lose access to aid already granted.
This standard from the Ministry of Labor and Social Economy seeks to improve the standard of living of working people, raising the SMI by 3.1%. But, far from ignoring the collateral effects on domestic economies, the legal text consolidates a single transitional provision that freezes the income reference thresholds.
The “shield” for aid from communities and town councils
The measure that will have the most impact on medium and low incomes is the rule of non-affectation of the new amount. The BOE establishes that the new amounts of the interprofessional minimum wage will not apply to the current regulations of the autonomous communities, the cities of Ceuta and Melilla and the local Administration. This is vital, since many of these administrations use the interprofessional minimum wage as an indicator or reference of the level of income to determine the amount of benefits or to allow access to public benefits and services.
To understand it, this means that:
- During the year 2026, the reference amount of the minimum wage will be understood to be the one that was in force before the entry into force of this royal decree.
- Families will not be disadvantaged when requesting regional or local aid that depends on this income limit.
- The only exception for the new higher figures to apply will be if the autonomous community or city council itself approves an express provision to the contrary.
Private contracts and agreements are also protected
The great novelty detailed in this Royal Decree is that the safeguard not only affects the public sector, but also the private sphere. References to the SMI that are often used in rental contracts, pensions or private agreements will maintain the conditions prior to this increase.
The BOE specifies that the new figures will not apply to any contracts and agreements of a private nature in force on the date of entry into force of the royal decree that use the minimum wage as a reference for any purpose. As with benefits, unless both parties agree otherwise, the old amount will be used throughout 2026 to avoid unexpected extra costs.
This is how the new SMI figures look for 2026
While the aid ceilings are frozen, payrolls must reflect the increase. For workers, the BOE clarifies the situation: the increases are a reality with retroactive effect from January 1, 2026. Employees will see their base updated in accordance with the new legal day, without the salary in kind being able to reduce the full amount in money.
| Type of Contract or Sector | Minimum Legal Amount for 2026 |
|---|---|
| General SMI (Monthly) | 1,221 euros/month |
| General SMI (Annual) | 17,094 euros/year |
| SMI General (Daily) | 40.70 euros/day |
| Temporary (less than 120 days) | 57.82 euros per legal day |
| Household Employees (external regime) | 9.55 euros per hour actually worked |
