To begin with, it is necessary to describe what the average salary is in Spain. The average wage is the amount of money a worker receives for performing a certain number of hours of work.

Although the crisis in Spain was accentuated in 2008, wages in Spain did not suffer a decline.

The average salary in Spain is 1,636 euros per month,0.2% lower than just a year ago. The purchasing power of wages falls by 2.4% in five years.

The Spanish average has registered this fall in purchasing power, with the exception of the Community of Madrid (+0.6%) and Cantabria (2.5%).

Basques and Madrileños, the Ones Who Win the Most

By autonomous communities only four show a salary higher than the national average: the base salary in the Basque Country (1,941 euros per month), the Community of Madrid (1,933 euros per month), Navarra (1,735 euros per month), and Catalonia (1,722 euros per month).

On the contrary, the regions with the lowest average salary are the following: the Canary Islands (1,402 euros) and Extremadura (1,333 euros).

If the average salaries of 2016 compared to those of 2011,we can see that now 7 communities have higher averages, but, on the contrary, 10 autonomous communities have seen their average salary fall, which translates into a generalized loss of purchasing power.

Minimum Interprofessional Wage in Spain

The late formation of the government was delayed until October, so no major changes were insicable, but the Council of Ministers surprised by raising the minimum interprofessional wage 52 euros more per month,that is, 8% more, which leaves the SMI in a final amount of EUR 707.60.

This is still quite far from that of countries such as France or the United Kingdom with a minimum interprofessional wage close to 1,500 euros, but it represents a significant salary improvement compared to recent years, since it only tended to rise by 0.5% or 1%.

In this way, as of January 1, 2017, the annual salary would become 9906.40 euros in 14 payments. Which would be about 23.49 euros of SMI per day.

However, despite being the largest historical increase in the SMI (8%), this measure leaves the unions unhappy since they proposed that the increase in the minimum interprofessional wage reach up to 800 euros,in order to reach the figure of 1000 euros per month in 2020.

The average net salary in Spain stands at 1356.88 euros per worker.

How Much Will Workers’ Wages Rise in 2017?

Unions and employers plan to raise wages in 2017 from 1.2% to 2.5%. The differences between employers and trade unions are getting smaller.

The leaders of the main trade union organizations have been in contact to close a wage agreement for the year 2017.

What do the unions and employers say about the rise in net wages in Spain?

  • The CEOE officially proposes a wage increase for workers, and another additional percentage depending on their level of productivity.
  • OO. it does not end up agreeing with the figures offered by the CEOE, therefore, the only thing it proposes is a percentage higher than that offered (specifically 1% more),which would be close to what was previously required by the unions.

The agreement would count on a small recovery of purchasing power on the part of workers, since the CPI would have to be shown in values above 3%. In case of not reaching this amount, inflation will be higher, and therefore, the wage increase even if it occurs, could have the opposite effect.

Collective agreements that do not reach the minimum required percentage of the CPI cannot be guaranteed.

On the other hand, a salary increase of 1% is also guaranteed in the 2017 budgets to public employees,for those who perform their functions in the General State Administration.

In addition to the offer of the salary increase, the Board of the CEOE, raised the need to reach agreements on absenteeism, mutuals, common contingencies and medical leave. They intend to implement a new training model and deal with issues such as ultraactivity.

Almost 1,900 agreements have been signed and entered into force this year in which a salary increase of more than 1% has been increased.

Despite the fact that there has been a increase in wages of 8% and this was the largest increase since 1958, purchasing power in families has been reduced by 2.4%,which is equivalent to about 30 euros per month.

In sectors such as industry, remuneration has not stopped growing since 2011, reaching a growth rate of up to 4.5%, but in sectors such as construction the opposite happens, it fell by 1.07% per month.

Therefore, despite the fact that an average wage increase is always positive,the Government has things to improve.