Government will return part of the TSU to companies in 2021 to compensate for the increase in the minimum wage

It was announced today by the Government

The Government will return to companies, next year, a part of the Single Social Tax (TSU) corresponding to the increase in charges for the 30 euros growth that the national minimum wage (SMN) will have in 2021, was announced today.

This is one of three measures that the Government will create to compensate companies for the increase in charges inherent to the increase in the SMN, which were announced by the Minister of Economy, at the end of a meeting of the Standing Committee for Social Agreement (CPCS).

The national minimum wage (SMN) will be increased by 30 euros in January 2021, from the current 635 euros to 665 euros.

According to the Minister of Economy, the portion of TSU to be returned to companies is not yet defined, but it will be a fixed, non-repayable amount, whose "exact amount and exact time for the return" is being worked out.

To compensate companies for the increase in SMN, the Government will also update public contracts and implement a credit line for exporting companies in the amount of 4000 euros per worker.

Employers' confederations have contested the increase in the national minimum wage, arguing with the economic difficulties that companies are experiencing due to the covid-19 pandemic.

UGT has been advocating an increase of 35 euros for SMN and CGTP claims an increase to 850 euros in the short term.

The Government has the competence to set the annual value of the national minimum wage, after listening to the social partners.