The minimum wage rise will most affect farming business with little mechanised activity. | Gemma Andreu
The increase to the minimum wage, which was formally approved by the Spanish government on Tuesday, will result in higher prices of local food products. This is the view of the Balearic agricultural sector, which points out that the cost of labour for some agricultural companies can be 50% of total production cost. The increase in energy prices has already led to higher prices for consumers and the minimum wage rise will now add to food inflation.