Spain Job Salaries and Wages Rise as Labour Costs Accelerate

Madrid – Higrh News: Spain job salaries and wages continued to move higher, while companies also faced rising labour costs, according to the latest figures from Spain’s National Statistics Institute (INE). The data show annual gross pay per worker increased by 3.1% in the latest annual survey, while wage costs rose 4.9% in the first quarter of the latest quarterly measurement. What do the newest figures reveal about pay and employment costs in Spain?

Spain Job Salaries and Wages Continue to Rise

The latest Annual Labour Cost Survey, published by INE on July 23, showed that the annual gross salary per worker reached €28,410.78, an increase of 3.1% compared with the previous year.

The same survey found that total gross labour cost per worker reached €38,748.94, up 3.3%. After grants and deductions received from public administrations were taken into account, net labour cost stood at €38,511.76, representing a 3.2% annual increase.

The figures provide the latest annual snapshot of pay levels and employment costs in Spain. They also show that the rise in salaries formed part of a broader increase in the cost of employing workers.

Non-salary costs rose by 3.6% to €10,100.98 per worker. The figures therefore distinguish between the salary received as gross pay and the wider cost incurred by employers for each employee.

Spain Job Salaries and Wages in the Latest Quarterly Data

The most recent quarterly figures, covering the first quarter, showed a faster annual increase in both labour costs and wage costs.

According to INE, companies’ labour costs rose 4.9% compared with the same period of the previous year, reaching €3,278.01 per worker per month. Wage costs also increased 4.9%, reaching €2,403.80 per worker per month.

Other labour costs increased 4.8%. Mandatory Social Security contributions, which represent the main component of these other costs, rose 4.5%.

After adjusting for calendar effects and seasonal factors, labour cost per worker increased 4.5% annually and 1.4% compared with the previous quarter.

The quarterly survey also recorded 159,785 job vacancies during the period, providing an additional indicator of demand for workers in the Spanish labour market.

How Much Does a Worker Cost in Spain?

The latest figures show a clear difference between gross salary and total labour cost.

The annual gross salary figure of €28,410.78 represents the salary per worker reported in the annual labour-cost survey. The total gross labour cost of €38,748.94 includes salary and other employment-related costs.

This distinction matters when assessing pay in Spain because the amount paid as salary is not the same as the total cost faced by an employer. The latest data show that non-salary costs accounted for €10,100.98 per worker in the annual survey.

The quarterly figures provide a more recent view of the trend. They show monthly wage costs of €2,403.80 per worker and total labour costs of €3,278.01 per worker in the first quarter. These figures are different statistical measures and should not be directly treated as a simple monthly conversion of the annual salary figure.

Salary and Labour Cost Differences by Sector

The annual data also show differences in net labour costs between Spain’s main economic sectors.

Industry recorded a net annual labour cost of €45,058.12 per worker, while construction registered €37,913.54 and services €37,470.54.

Compared with the previous year, net labour costs increased 3.6% in industry, 4.5% in construction and 3.1% in services.

The figures indicate that employment costs vary significantly according to economic activity. The annual survey therefore offers a broader picture than a single national salary average, allowing the labour market to be examined across different sectors.

Collective Agreements Cover Most Workers

The annual labour-cost data also highlighted the role of collective bargaining in Spain’s employment system.

INE reported that 95.4% of workplaces, representing 86.7% of workers, regulated their labour relations through collective agreements. Among employees covered by collective agreements, 4.1% saw their working conditions modified during the period covered by the survey.

These figures provide context for understanding how employment conditions are established across a large part of the Spanish workforce.

What the Latest Wage Figures Mean for Workers and Employers

Taken together, the latest official figures show that salaries and labour costs in Spain have continued to increase.

The annual survey recorded a 3.1% rise in gross annual salary per worker, while the latest quarterly data showed wage costs rising 4.9% year on year. At the same time, total labour costs increased at the same 4.9% rate in the quarterly measurement.

For workers, the data point to continued growth in gross pay. For employers, the figures show that the overall cost of employing staff has also risen, with wages and other employment-related expenses contributing to the increase.

The latest official data therefore present a labour market in which both employee pay and employer labour costs are moving upward, although the pace differs depending on the statistical period and the measure used.

Frequently Asked Questions

What is the latest annual gross salary per worker in Spain?
The latest annual survey reported gross annual salary of €28,410.78 per worker.

How much did salaries increase?
Gross annual salary per worker increased by 3.1% compared with the previous year covered by the annual survey.

What was the average monthly wage cost in the latest quarterly data?
The wage cost reached €2,403.80 per worker per month in the first quarter.

How many job vacancies were recorded?
The latest quarterly survey recorded 159,785 job vacancies.

Conclusion

Spain’s latest official labour data show continued growth in job salaries and wages alongside rising employment costs. Gross annual salary per worker increased 3.1%, while the latest quarterly figures recorded a 4.9% annual rise in wage costs. The data also underline substantial differences between sectors and the extensive role of collective agreements in regulating employment conditions.