For Spaniards, the issue of wages remains one of the most pressing: despite a formal rise in the average salary, the real income of most residents continues to decline. In 2025, according to InfoJobs and Esade, the average annual income for full-time positions reached 27,336 euros. However, this increase was not enough to offset the rising cost of goods and services, which directly impacts quality of life and the ability to save.
According to the report, nominal wage growth was just 1% compared to the previous year, equivalent to 276 euros. At the same time, inflation over the same period reached 2.9%. As a result, workers’ purchasing power fell by 1.9%. Even though 2024 saw a slight positive trend, with wage growth outpacing inflation, the situation in 2025 has once again shifted against workers’ interests.
Trends and causes
Since 2019, the average salary in Spain has increased by 7.6%, but the pace of growth remains modest. After a sharp decline during the pandemic, recovery was slow: in 2023, growth was 1.6%, in 2024—3.1%, and in 2025—only 1%. Experts point out that these numbers are linked to low labor productivity and structural features of the economy. According to InfoJobs and Esade, the gap between price growth and incomes is a direct result of this factor.
Spain’s labor market remains dependent on macroeconomic factors, including employment figures, migration flows, and shifts in job structure. While wages are gradually returning to 2019 levels, they are still well below those seen fifteen years ago. This gap is felt most strongly among workers with lower education and those on temporary contracts.
Differences by sector and contract type
Salary distribution analysis reveals significant variations depending on contract type and education level. Permanent employees earn an average of €29,720 per year, while temporary workers receive only €24,579. The self-employed can expect about €35,954, though this figure has slightly decreased compared to last year. Higher education also has a clear impact on income, with university graduates averaging €35,785.
Most job offers list salaries between €18,000 and €30,000. The share of vacancies with pay below €18,000 has dropped from 16% in 2023 to 9% in 2025, indicating a gradual improvement in entry-level conditions for new employees. However, gaps between sectors and regions persist, and base salaries in some industries remain low.
Impact of the SMI and social consequences
The minimum wage (SMI) in 2026 reached €1,221 per month (€17,094 per year), still below the average, though the gap is narrowing. The SMI is rising faster than average wages, providing some support to the most vulnerable workers. Nevertheless, this increase is not enough to offset the overall decline in purchasing power.
Insufficient income growth directly impacts family opportunities: housing becomes less affordable, savings decrease, and consumption drops. This is especially felt by families with lower education levels and temporary employment. As noted by InfoJobs and Esade, wages are still lagging behind rising costs of housing, services, and the general increase in the cost of living.
Context and Recent Trends
In recent years, Spain has faced similar challenges: even as nominal wages rise, inflation often outpaces this growth. In 2022 and 2023, real incomes also declined, sparking widespread discussion among the public and experts. Analysis by russpain.com indicates that this trend is seen in other European countries as well, where wage increases do not always keep up with inflation. In Spain, special attention is given to the impact of SMI increases and regional differences, fueling ongoing debate in the labor market.
