Spanish Workers Earn Less Than Average as Economic Disparities Widen

While recent years have seen nominal increases in salaries across Spain, these gains have proven insufficient for a majority of the workforce. A comprehensive report from CCOO (Comisiones Obreras), a prominent Spanish trade union, underscores a persistent paradox in the Spanish labor market: employment figures are reaching record highs, yet the majority of workers are failing to reach the national average salary.

This situation is exacerbated by how the national average is calculated, with high earners skewing the figure upwards, leaving the majority below. The report emphasizes that the median salary offers a more realistic picture of the typical worker’s earnings.

Average vs. Median Earnings

According to the CCOO report, which utilizes data from Spain’s active population survey (EPA) for 2024, the average gross monthly salary in Spain stands at €2,386 across twelve payments. However, a significant 63% of salaried employees, totaling approximately 11.64 million individuals, do not reach this benchmark.

The discrepancy arises from the calculation method for the average salary. High earners can disproportionately influence this figure, creating a misleading impression of overall wage levels. A more revealing metric, the median salary, indicates that half of all workers earned less than €2,041 gross per month in 2024. This represents a €345 deficit compared to the average salary, clearly delineating the economic reality for a substantial portion of the Spanish population.

Labor Market Duality

Further insights from the 2024 Survey on Wage Structure reveal a pronounced duality in the Spanish labor market. The most frequent gross annual salary was €16,520, a stark contrast to the annual average of €29,540. A considerable segment of the workforce, nearly three in ten employees, earns between €16,000 and €23,000 annually, a range that reflects the financial circumstances of the majority.

Younger workers entering the job market face even greater challenges, earning an average of €1,372 gross per month, significantly less than the €2,680 earned by those nearing the end of their careers. Factors such as temporary contracts and the prevalence of multiple jobs (pluriempleo) contribute to this wage gap. Regional disparities also persist, with regions like Extremadura, the Canary Islands, and Castilla-La Mancha reporting the lowest salaries, despite experiencing growth potentially driven by increases in the minimum wage.

Signs of Improvement for Lower Earners

Despite the prevailing wage disparities, the CCOO report identifies a positive trend for the lowest-earning segment of the workforce. Between 2018 and 2024, the real purchasing power of the average salary saw a 2.8% increase, surpassing the 1.6% growth observed between 2007 and 2018. Crucially, the bottom 10% of income earners experienced a remarkable 24% real-term improvement in their earnings since 2018, a significant recovery after a 17.8% loss during the previous economic crisis.

This improvement is attributed to policies such as the substantial increase in the Interprofessional Minimum Wage (SMI). For 2026, the SMI is set at €1,221 per month across 14 payments, effectively raising the income floor for the lowest-paid workers. This policy aligns with the European Social Charter’s objective of ensuring the SMI reaches 60% of the average salary.

Housing Costs Outpace Wage Growth

The positive impact of wage increases is being significantly undermined by the rising cost of essential goods, particularly housing. In Spain, rental prices have outpaced wage growth, impacting the disposable income of many households. In June, rental prices saw a 2.5% year-on-year increase, contributing to a 1.4% rise in the first half of 2026, according to INE’s Consumer Price Index (IPC) data.

The report’s authors note that the escalating cost of housing “reduces the impact of salary increases,” particularly for low-income households and young people. This trend translates into reduced savings and prolonged delays in achieving financial independence and moving out of parental homes.

Key facts
| Metric | Value | Source |
|—|—|—|
| 63% of Spanish workers earn below average salary | N/A | CCOO Report |
| Average Gross Monthly Salary | €2,386 | CCOO Report (EPA 2024) |
| Median Gross Monthly Salary | €2,041 | CCOO Report (2024) |
| Minimum Interprofessional Wage (2026) | €1,221/month (14 payments) | CCOO Report |

This development matters to ReviewArticle readers as it highlights the complex interplay between economic policies, wage stagnation, and the cost of living in a major European economy. While AI and automation are often discussed in the context of increased productivity and potential job displacement, this report grounds the conversation in the tangible realities of workers’ earnings and the impact of economic conditions on their daily lives. Understanding these macroeconomic trends is crucial for assessing the broader societal implications of technological advancements and policy decisions.

Source: España sigue siendo un país de salarios bajos: el 63% de los trabajadores no llega al salario medio, Xataka, https://www.xataka.com/empresas-y-economia/espana-sigue-siendo-pais-salarios-bajos-63-trabajadores-no-llega-al-salario-medio

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