Spanish workers live, for the purposes of the goods and services that can be purchased, with the same salary as 16 years ago. In 2007, the average ordinary employee earned 19,588 euros gross per year, while in 2023 their salary amounted to 26,406 euros (34.8% more). However, in that same period consumer prices have skyrocketed by 36.1%, which has completely neutralized the wage increases that have been recorded since 2007.
This is one of the main conclusions of a report released this Wednesday by the EADA business school prepared from data from the consulting firm ICSA.. The figures come from a database of 80,000 salary records of public and private sector workers and have been obtained through surveys and consultations with online platforms, the report states.
The strong price increases registered since mid-2021 have 'eaten' the small gain in purchasing power that salaries accumulated in previous years. The devaluation of salaries has been widespread and has affected both employees and managers and middle managers.. In these last two cases, their remuneration in 2023 was 24% and 28.6% higher respectively than in 2007, well below the inflation accumulated since then.
If we focus on the most recent evolution, the average remuneration of an employee in Spain stood at 26,406 euros per year in 2023, 8.8% more than in 2022.. This increase doubles that registered in 2022 and is the largest since the outbreak of the financial crisis. EADA explains this rise by the increase in the minimum wage, the effects of collective bargaining, the modernization of employment and the demands of the market in certain positions and sectors.
The salaries of ordinary workers have grown especially in small companies — where they increased by 12.2% — and in medium-sized companies (13.3%), compared to 8% in large companies, according to EADA data. In any case, the average remuneration in large firms (29,706 euros) is 25% higher than that received by employees of small companies.
If we ascend the chain of hierarchies, the salary of middle managers stands at 43,062 euros gross per year, 3.8% below the 2022 level. The authors of the report attribute this loss of salary to a trend to reduce middle management and the creation of technical positions that will be accentuated in the future by the technological revolution.
Regarding management positions, salaries are rising especially strongly in large companies, where they reach an average of 117,713 euros gross per year, 6.5% more than in 2022. Managers of large firms pocket up to 66% more than those of small companies and their remuneration is four times that of a rank-and-file employee.
Industry and banking gain purchasing power
At the sector level, the only workers who have improved their purchasing power are those in industry, banking and insurance.. Remunerations in the industrial sector have grown by 50% since 2007, while in banking and insurance they increased by 39.4%, two figures that beat the price increase registered since then.
On the other hand, in the rest of the activities the loss of purchasing power is very great.. In services, salaries are only 5.6% higher than in 2007, an increase similar to that registered in commerce and tourism (7%).. Transportation recorded salary increases of 17.2% in that time, while construction saw increases of 22.8%, far from the 36% that consumer prices have increased since that date.
If the situation is analyzed by territory, the only autonomous communities in which employees earn more than the national average are Madrid (27,987 euros per month), Catalonia (26,966) and Navarra (26,707).. On the other side of the spectrum appear those from Castilian-Leonese (22,683), those from Rioja (22,552) and those from Extremadura (21,981).