THE Socialist government of Pedro Sanchez has reached an agreement with Podemos about the 2019 budget that includes the minimum wage rising to €900 per month, and increasing minimum pensions by 3 per cent.
The two parties have been in talks since August and are preparing to send their plans to the European Commission.
Currently the minimum wage stands at €735 per month, so a rise to €900 would represent an increase of 22.3 per cent.
Boosting minimum and non-contributory pensions by 3 per cent will cost the government €384 million, while the remaining pensions will go up by 1.6 per cent.
The agreement also contains housing measures, including proposals to limit rental prices in areas that have seen a sharp escalation.
There are also plans to help the long-term unemployed aged over 52 get back training and jobs, with a budget allocation of €323 million.