Spanish Workers See 2.9% Salary Growth: INE Report Reveals Average Annual Income of 25,900 Euros

Spain's average salary witnessed a notable increase in 2021, growing by 2.9% compared to the previous year, according to the Wage Structure Survey conducted by the National Institute of Statistics (INE). However, income inequality remains a significant concern, with disparities evident across gender, sectors, and other factors. The report provides valuable insights into the state of salaries in Spain, shedding light on both positive trends and persistent challenges.

Average Salary and Distribution

The survey reveals that the average gross annual salary in Spain stood at €25,897 in 2021, indicating a 2.9% growth from the previous year. This increase reflects a positive trend in the overall earning potential of workers in the country. However, it is important to note that a substantial portion of workers earned less than this average. The median salary, which divides the workforce equally, was €21,639 per year, representing a 3.4% increase compared to 2020. This disparity underscores the existence of income inequality, with a significant number of workers earning below the average salary.

Gender Pay Gap

Despite progress, the gender pay gap persists in Spain, as highlighted by the report. Men earned an average gross annual salary of €28,389, while women earned €23,176, resulting in a gender pay gap of 18.4%. Although the gap has slightly narrowed compared to the previous year, it remains a considerable challenge. The gender pay gap points to systemic issues and the need for ongoing efforts to address pay equity and create a fair and inclusive work environment.

Sector Disparities

Salaries across sectors in Spain exhibit notable variations. The survey indicates that the supply of electricity and gas sector offered the highest average gross annual salary of €52,986, followed by financial and insurance activities with €46,122. These sectors typically involve specialised roles and industries that command higher salaries. Conversely, sectors such as the hotel industry, administrative activities, artistic and recreational activities, and commerce recorded comparatively lower average salaries. Addressing these sector disparities is crucial to promote fair compensation and equal opportunities across industries.

Age and Nationality Factors

Salaries also vary based on age and nationality. Workers under the age of 40 earned an average salary below the national average, reflecting the influence of experience and career progression on earning potential. The report highlights that men aged 55 to 59 garnered the highest average salary at €32,299 per year. Additionally, Spanish nationals received higher salaries compared to workers of other nationalities, with differences ranging from 16% for EU-born workers to 58% for American-born workers. These variations suggest the presence of demographic and socioeconomic factors influencing salary differentials.

Income Disparity and Minimum Wage

The report reveals that approximately 17.5% of workers earned at most the minimum interprofessional wage (SMI) of €13,370 per year in 2021. Moreover, two-thirds of workers earned less than €1,910 per month, emphasizing the persistence of income disparity and the challenges faced by many workers in meeting their financial needs. These findings underline the importance of ensuring that minimum wages are adequate and that measures are in place to address income inequality and support those in lower-wage brackets.

Regional Level Disparities

At the regional level, the Basque Country recorded the highest average salary of €31,064, followed by Madrid (€29,512), Navarra (€28,459), and Catalonia (€28,145). These regions surpass the national average salary, indicating higher earning potential. Conversely, Extremadura (€21,393), the Canary Islands (€22,466), and Andalusia (€23,155) are the three regions with the lowest average salaries. The substantial differences in salary levels emphasise the regional variations in economic development and job opportunities.

These regional disparities are significant, to the extent that a worker in the Basque Country earns, on average, 45% more than a worker in Extremadura. Addressing these discrepancies is crucial to promote balanced economic growth and ensure equal opportunities for workers across all regions of Spain.

Source

https://ine.es/prensa/ees_2021.pdf
https://www.20minutos.es/noticia/5139571/0/salario-medio-espana-se-situa-25-900-euros-ano-tras-crecer-un-2-9/
https://www.rtve.es/noticias/20230620/salario-medio-anual-sueldos-empleo-trabajadores-ine-espana-economia/2450043.shtml