In a positive move for low-income earners, the Ministry of Finance and the Ministry of Labour have agreed that workers on the minimum interprofessional wage (SMI) will not have to pay personal income tax in 2025.
This decision introduces a special tax deduction, ensuring that anyone earning the SMI or less won't be burdened by income tax next year.
This agreement comes after a tense period of negotiation. The Minister of Labour, Yolanda Díaz, explained that discussions initially broke down when the Treasury unexpectedly withdrew from talks on Thursday evening.
Speaking to Telecinco, Díaz recounted how efforts to secure tax relief for minimum wage earners hit a snag, with the Treasury stepping away from negotiations.
Despite this setback, Díaz was determined to protect low-income workers. She submitted several proposals to the Vice President and Minister of Finance, María Jesús Montero, aiming to reach an agreement that would spare minimum wage earners from tax liabilities.
The resolution of these negotiations is a significant step forward, ensuring financial relief for those on the lowest incomes in the Canary Islands, as well as the rest of Spain.
This agreement highlights the government's dedication to supporting minimum wage workers and promoting greater economic fairness.
