Salary is determined through collective negotiation or, failing this, via individual contracts. A minimum professional salary is established in collective agreements. This minimum can be increased via an individual contract.
In the absence of a minimum professional wage having been agreed via a collective agreements or individual work contract, the government annually sets a minimum interprofessional salary for the legal working day. For a shorter day, the pay is adjusted accordingly. For 2008, the minimum inter-professional salary is the following:
The minimum inter-professional salary for temporary and seasonal employees, whose services for one company do not exceed 120 days, is 28.42 Euros per legal working day.
Notwithstanding the above, Statutory Law 3/2004, 25th June (Real Decreto Ley 3/2004, de 25 de junio), by means of which the Minimum Wage Index (IPREM) was introduced, must be borne in mind.
The IPREM was created as a wage indicator or reference aimed at assisting in the determination of amounts of certain benefits or in accessing certain benefits or public services, and may in this sense be employed in substitution of the minimum wage. Such is the case of the maximum and minimum amounts corresponding to contributive unemployment benefit, in accordance with article 211.3 of the Revised General Social Security Law (Texto Refundido de la Ley General de la Seguridad Social), as well as the amounts corresponding to non-contributive unemployment benefit, in accordance with article 217.1 of the mentioned Law, in which the reference to the Minimum Wage (SMI) are to be replaced by the Minimum Wage Index (IPREM).
The IPREM is determined on a yearly basis in the General State Budget Law, bearing in mind the forecast rate of inflation.
The amounts corresponding to the IPREM for 2008 are as follows:
| 
