The Spanish prime minister announced Tuesday that they would raise the minimum wage by 8% this year as elections loom closer. The country’s lowest-paid full-time workers will soon earn a legal minimum of 1,080 euros ($1,172) per month in 14 payments per year. In total, the annual minimum wage will increase to 15,120 euros.

"With that, we achieve one of our promises, which I also believe was our democratic duty: Raising the minimum wage so that it’s 60% of the average salary," Prime Minister Pedro Sanchez said in the Senate during a debate with the conservative opposition leader.

He added that the government’s "fight to improve working conditions" and "more fairly distribute wealth" is "just getting started."

Since Sanchez became Spain’s prime minister in 2018, the country’s minimum wage has shot up 35% from 735 euros per month. At the same time, Spain’s unemployment rate has dropped to around 12% - the lowest level since the 2008 financial crisis.

However, this year’s increase would not put minimum wage workers ahead of where they were last year, as Spain’s average monthly inflation hit 8.4% in 2022. Pensioners also saw payment increases of 8.5% to keep up their purchasing power.

But the move does lead to a fairer distribution of wealth, argued Sanchez.

"Salaries of the working and middle class haven’t increased as much as they should have over the last decade because of an economic model based on lowering wages to attract foreign business. We need to change that," said Sanchez. "In 1999, an average Spaniard needed four years’ worth of salaries to buy an average house. Now, it’s eight."

Opposition leader Alberto Nunez Feijoo said he supported the minimum wage increase but slammed Sanchez for driving up inflation and accused him of populism.

"All you care about is resisting and destroying your adversary," said the Popular Party leader in a heated debate.

Nationally, regionally and locally, 2023 is a big election year for Spain.

Meanwhile, representatives of Spain’s main business organization CEOE refused to show up to a meeting to discuss the minimum wage increase, accusing the government of not listening to their arguments.

The organization argued that the minimum wage should only increase by 4% to 1,040 euros per month as companies also suffer from inflation.