Editorial: El Español

• Yolanda Díaz has increased the minimum wage by 5%, even above the figure originally offered to the unions. This is seen by some as a punishment to the businesses.
• The lack of objective justification for the 5% increase, and the stance of CEOE and Cepyme, indicate that this increase may have been arbitrary.
• The cost of the minimum wage increase to businesses will be significant, increasing their financial burden.
• The Bank of Spain had previously warned of the negative impact on employment that a minimum wage increase can have.
• The minimum wage increase may disproportionately affect small businesses and the most vulnerable workers, such as young and precarious workers.

Conclusion: The minimum wage increase was implemented in a way that appears punitive to businesses, and may have undesired economic effects on employment and small businesses.

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