By Travis Kliever
Updated February 21, 2024

Average Salary in Spain

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In 2023, the average salary in Spain is €2,250 gross per month or €27,000 per year. This figure, however, encompasses a wide range of incomes, as 25% of the Spanish population earns less than €1,600, and 75% earns less than €7,080. Compared to other European countries, Spain’s average net salary is in the middle.

Spain, a country known for its rich culture and picturesque landscapes, also holds an interesting position regarding the average salary of its working population. In recent years, the country has witnessed an upward wage trend. Still, it is also essential to consider various factors that influence these numbers, such as the cost of living, economic trends, and disparities in salary distribution.

Understanding the average salary in Spain goes beyond just analyzing the numbers – it involves delving into the region’s key cities, sector-wise average salaries, and wage differences based on experience and job positions. In addition, comparing Spain’s salaries to those found in other European countries can provide valuable insights into the nation’s economic standing and potential growth.

Key Takeaways

The average salary in Spain is influenced by factors like cost of living, economic trends, and disparities among the population.
A comprehensive view of salaries involves examining key cities, sectors, and employee experience levels.
Comparing Spain’s average salary to other European nations gives an insight into the country’s economic position and potential growth.

Understanding the Average Salary in Spain

It is important to note that there are regional variations in Spain’s average wage. In the capital city of Madrid, salaries tend to be higher, ranging from €35,000 to €40,000 per year on average. This discrepancy highlights the impact of location on income levels within the country.

The average gross annual salary in Spain ranges between €24,000 and €28,000. However, individual circumstances and career choices can lead to significant variations. For instance, some professions or industries might offer higher wages than others, and years of experience can also significantly determine one’s salary.

According to a recent report, the average salary in Spain will reach a record level of €1,822 per month in 2022. This marked a 4% increase from the previous year, the second-highest increase since 2008. Such trends and factors should be considered when examining average salaries in Spain.

When analyzing the average salary in Spain, it is crucial to recognize that several factors, such as location, industry, and experience, can affect individual incomes. Understanding these variables and their impact on wages can provide a more comprehensive and accurate picture of the average salary in Spain.

Comparison of Salaries in Key Cities

In this section, we will compare the average salaries in various key cities and regions across Spain. Understanding the salary landscape in these areas helps job seekers and employers make informed decisions.

Madrid

As the capital city of Spain and a hub for many industries, Madrid attracts workers from across the country. The average pay for a software developer in this city is €27,405 per year. The overall average salary in Madrid is higher compared to other regions, making it an attractive destination for job seekers.

Canary Islands

Located off the coast of Northwestern Africa, the Canary Islands are known for their tourism industry. Salaries in this region may be lower than in major cities like Madrid, but the cost of living is also generally lower.

Basque Country

Home to cities like Bilbao and San Sebastián, the Basque Country offers a mix of industrial and service jobs. This autonomous community has a strong economy, which contributes to higher average salaries.

Navarre

Navarre is located in the north of Spain and is known for its well-preserved historical sites. The region has a diverse economy with thriving agricultural and industrial sectors.

Galicia

Galicia is a region situated in the northwest corner of Spain, known for its beautiful landscapes and rich history. The primary industries here are agriculture, fishing, and tourism, with average salaries being more modest compared to bigger cities.

Community of Madrid

The Community of Madrid encompasses the city of Madrid and its surrounding areas. As a major economic center, the community offers attractive salary options for workers in various industries.

Catalonia

Catalonia, featuring its capital city Barcelona, is an autonomous community on the northeastern coast of Spain. Known for its strong economy and vibrant culture, this region attracts many job-seekers. Salaries here are generally competitive with other major Spanish cities.

Murcia

Situated in southeastern Spain, Murcia has a growing economy with a focus on agriculture, tourism, and manufacturing. Average salaries in this region may be lower than larger cities but are still competitive on a national scale.

Andalusia

Andalusia is Spain’s most populous region, known for its unique culture, historic architecture, and beautiful landscapes. The economy is diverse with a mix of agriculture, tourism, and industry jobs. Salaries here vary depending on the specific sector.

Balearic Islands

The Balearic Islands, consisting of Mallorca, Menorca, Ibiza, and Formentera, are famous for their stunning beaches and vibrant nightlife. The economy is driven by tourism, with salaries in this sector often being seasonal and lower than the national average.

Aragon

Located in northeastern Spain, Aragon is an autonomous community with a diverse economy. The region has developed industries such as automotive production, energy production, and logistics, providing a range of job opportunities at various salary levels.

Sector-wise Average Salary

In Spain, the average salary varies across different sectors. According to the consulting firm Adecco, the overall average salary in Spain was set at €1,822 per month in 2022. Let’s analyze the average salary within various sectors.

Industry plays a significant role in Spain’s economy and as such, certain professions in this sector have higher-than-average salaries. For instance, the professions dealing with the supply of electricity earn the highest annual salary within the industry sector.

Construction has an average salary that depends on the job title and the region in Spain. The salaries can range from lower-than-average in less economically developed regions to higher-than-average in major cities like Madrid, where average salaries tend to range from €35,000 to €40,000 per year.

Companies have a direct impact on the average salary as larger companies usually provide better salaries and benefits. In certain regions, like the Basque Country, higher average annual wages were observed in 2021, as reported by Statista. This points to a concentration of well-paying companies in those regions.

Different job titles impact the average salary, with some sectors paying more than others. In 2021, finance and communication jobs were among the highest-paid professions across various regions in Spain, according to a study by the Adecco Group Institute.

The sector-wise average salary in Spain varies depending on the industry, construction, size of the company, and job title.

Average Wage by Experience and Position

In the Spanish job market, wages vary significantly based on experience level and job position. It is essential to understand the average wages for different roles and experience levels to provide insight into how competitive the job market is and what to expect when pursuing a career in Spain.

For instance, a project manager in Spain earns an average of €54,000 per year. However, the salary range is quite wide, with entry-level project managers earning around €30,000 and experienced project managers earning up to €90,000. This demonstrates the importance of experience and skills in determining wages for specific roles.

Employers also play a significant part in salary variations. Firms belonging to sectors such as banking and investment, and insurance tend to offer the highest salaries in Spain according to Expatica. Companies in other industries, such as retail or hospitality, might offer lower average salaries for similar positions.

Considering various career fields, different jobs attract distinct salary ranges. Let’s consider the following examples:

Software Engineers: On average, software engineers in Spain earn about €40,000 per year, with junior engineers earning around €26,000 and experienced ones reaching up to €70,000.
Marketing Managers: In the field of marketing, managers earn around €50,000 on average, with salaries ranging from €28,000 for entry-level positions to about €80,000 for more seasoned professionals.

It is crucial to note that these figures serve as a general guideline, and individual salaries depend on numerous factors, including geographical location, company size, and specific job requirements. Additionally, in Spain, wages typically include extra payments known as “pagas extra,” which may influence the overall annual salary.

Salary Comparison with Other European Countries

In this section, we will compare the average salary in Spain with other European countries such as Germany, France, Italy, Greece, Netherlands, Ireland, Portugal, Belgium, Croatia, Cyprus, Estonia, Finland, Norway, Poland, Slovenia, Sweden, and Switzerland.

Country Name	Gross Monthly Salary
Germany	€3,994
France	€2,986
Greece	€1,160
Netherland	€3,430
Ireland	€3,353
Italy	€2,625
Portugal	€1,330
Belgium	€3,401
Croatia	€1,083
Cyprus	€2,042
Estonia	€1,400
Finland	€3,250
Norway	€3,920
Poland	€1,517
Slovenia	€2,207
Sweden	€3,130
Switzerland	€5,164

Economic Trends and Their Impact on Wages

Spain has experienced various economic fluctuations that have directly affected the average annual wages over the years. In 2009, the country recorded a high of approximately 31,914 euros as the average annual wage. However, it faced a low in 2006 with 28,689 euros.

The impact of the COVID-19 pandemic stagnated the economy in 2022, particularly affecting sectors such as tourism, hotels, restaurants, and retail. Consequently, the average gross salary offer dropped by 0.7% compared to 2021, standing at 24,395 euros.

Regarding wage growth, it has generally shown an upward trend in recent years. In March 2022, wages in Spain rose by 2.2% year-on-year, a similar increase to those experienced prior to the pandemic (with a 2.1% year-on-year average in 2018 and 2019).

Wages continued to grow in June 2023, increasing by 5.05% over the same month in the previous year. This demonstrated an improvement in the labor market and recovering economic trends. However, it is crucial to note that Spain’s wage growth has shown some volatility in the past, with the all-time high growth recorded at 14.43% in the second quarter of 2021, while it reached a record low of -9.44% in the second quarter of 2020.

These economic trends have shaped the trajectory of wages in Spain, both positively and negatively. While the country has been working towards stabilizing its economy and boosting wages, external factors such as the pandemic and global economic shifts continue to influence the labor market and income distribution in Spain.

Minimum Wage in Spain

The minimum wage in Spain, also known as the Minimum Interprofessional Salary (SMI), plays a significant role in determining the average salary of workers in the country. In 2023, the SMI in Spain was set at €1,080 gross per month in 14 payments, amounting to €15,120 gross per year. This increase in the minimum wage aimed at improving the living standards of workers while trying to keep up with the rising costs of living.

Regarding hourly wages, the minimum wage for domestic employees who work by the hour in Spain is set at €8.45 per hour actually worked. This rate seeks to address the need for fair compensation among domestic workers, ensuring that they too can benefit from the protection provided by labor laws.

Comparing the minimum wage in Spain to other European countries, it can be observed that Spain lies somewhere in the middle. The average salary, on the other hand, is slightly higher, amounting to €2,250 gross per month or €27,000 per year. Since this figure represents the average, it is worth mentioning that 25% of the population earns less than €1,600, while 75% earn less than €7,080. This disparity in earnings highlights the need for ongoing monitoring and evaluation of the minimum wage policies to ensure a fair distribution of income among the working population.

The minimum wage in Spain serves as a crucial metric for understanding the average salary and overall standard of living for workers in the country. With the SMI set at €1,080 per month in 2023 and an average salary of €27,000 per year, Spain continues to strive for fair working conditions and equitable income distribution.

Influence of Cost of Living on Salary

The cost of living in Spain plays a significant role in determining the average salary. With a relatively lower cost of living compared to other European countries, the average salary in Spain is €2,250 gross per month or €27,000 per year. When 25% of the population makes less than €1,600 and 75% earns less than €7,080, it is essential to consider the living costs to evaluate whether the salaries can cover the necessary expenses.

Housing is one of the primary factors affecting the cost of living. Rent prices vary depending on location, with larger cities like Madrid and Barcelona having higher rental rates. For instance, a one-bedroom apartment in Madrid can range between €660 and €880 per month, while in Barcelona, it can be between €710 and €890. A three-bedroom apartment costs between €1,055 and €1,530 in Madrid and between €1,105 and €1,540 in Barcelona.

The cost of living also includes other necessities such as utilities, groceries, transportation, and healthcare. Spain’s utility prices are generally affordable, with most households paying between €100 and €150 per month for services such as electricity, water, and gas. Additionally, the monthly cost of public transportation is comparably lower, with a standard monthly pass costing around €50. Groceries in Spain are also relatively affordable, enabling individuals to maintain a comfortable lifestyle even with the country’s average salary.

Spain’s salary structure is not uniform across industries or regions, resulting in differences in the ability to cope with the cost of living. For example, the lowest average annual salary was in hospitality at €14,000 a year in 2007, which was 31% below the average. In 2019, it had barely risen to €14,561 per year, 40% below the average salary. Understanding how the rising cost of living affects various industries and regions is crucial to evaluate the overall impact on the nation’s workforce.

The influence of the cost of living on salary in Spain is an important aspect when considering the financial well-being of the population. While the average salary in Spain is not as high as in other European countries, the comparatively lower living costs make it possible for individuals to have a comfortable standard of living.

Salary Distribution: Male Workers Vs Female Workers

In Spain, there is a noticeable difference in the average salaries between male and female workers. According to Statista, in 2021, the average annual full-time salary for a male worker was 30,740 euros, while a female worker employed full-time earned approximately 24,882 euros.

This difference in salaries can be attributed to the gender salary gap, which is present across various age groups and industries in Spain. The National Statistics Institute of Spain provides data on the hourly salary gap by age, showing that this issue spans different career stages as well.

In terms of income percentiles, the top one percent of wage earners in Spain accounted for 12.4 percent of the overall pre-tax national income in 2021. However, the report does not explicitly break down the income percentiles by gender.

The average salary in Spain in 2023 is estimated to be €27,000 per year or €2,250 gross per month. With 25% of the population earning less than €1,600 and 75% earning less than €7,080, Spain’s average net salary is considered to be in the middle compared to other European countries.

To address the gender salary gap, companies in Spain are now required to make their employees’ salaries public. If there is a salary difference of 25% or more in the average salaries paid to female workers compared to male workers, companies with at least 50 employees must provide a justification for the difference.

In summary, the salary distribution in Spain shows a significant gap between male and female workers, with males earning higher average salaries. Initiatives are being put in place to increase salary transparency and reduce the gender salary gap in the country.

Taxation and Social Security Contribution

In Spain, individuals are subject to income tax and social security contributions. The income tax, known as the Personal Income Tax (IRPF), is levied on the income of residents, which includes employment income, business income, and savings income. Personal tax rates are progressive and range from 19% to 45%, depending on the taxpayer’s income level.

Employers and employees are both required to pay social security contributions. In general, the contribution rates are 6.45% for employees and 30.40% for employers. These contributions also vary depending on the type of contract and occupation. For instance, a higher rate may apply for occupations with a higher risk of accidents.

Social security contributions provide various benefits and cover the following aspects:

Healthcare
Retirement pensions
Unemployment benefits
Disability benefits

The contribution rates and thresholds, as well as Social Security benefits, are subject to annual updates. In 2019, the lower ceiling for assessing employee social security contributions was EUR 12,600, while the upper ceiling was EUR 48,841.20.

It is important to note that certain individuals may be exempt from paying social security contributions if specific requirements are met. For example, self-employed individuals with a low income may be eligible for reduced contribution rates.

Both income tax and social security contributions play a crucial role in the Spanish taxation system. Employers and employees must ensure compliance with the applicable rates and regulations, as contributions are vital for financing essential benefits and services for all residents in Spain.

Purchasing Power and Quality of Life

In Spain, the average salary in 2023 is €2,250 gross per month or €27,000 per year. However, despite the rise in wages, the average worker experienced a 4% loss in purchasing power in 2022. This decrease resulted from inflation and a 5.7% increase in consumer prices during 2022.

The cost of living in Spain can affect the quality of life for individuals and families. For example, in Madrid, consumer prices are 33.78% lower than in Washington, and it takes approximately €3,673.05 to maintain a similar standard of life in Madrid, while it takes $6,900 in Washington. This significant difference highlights the relative affordability of living in Spain compared to other countries.

Moreover, Spain’s healthcare system is consistently ranked among the top in the world, offering universal coverage and a wide range of services. This contributes to the overall quality of life for its residents, as access to quality healthcare is an essential factor for well-being.

In summary, although the purchasing power in Spain has experienced a decrease, the relatively lower cost of living and access to top-quality healthcare contribute positively to the overall quality of life.

Frequently Asked Questions

What is the typical income for various professions in Spain?

In Spain, the average salary varies depending on the profession and industry. For instance, an engineer or project manager earns around €59,900 per year, while a sales manager earns approximately €58,880, and an IT director makes around €48,000 annually source. These figures may change with factors such as experience, location, and company size.

How does the cost of living in Spain affect average salaries?

The cost of living in Spain plays a vital role in determining salaries. In areas with a higher cost of living, such as major cities like Madrid and Barcelona, salaries tend to be higher to accommodate for higher living expenses. However, even in these areas, salaries can still be low for some professionals, which may lead to a lower standard of living than expected.

What is the minimum wage in Spain for 2023?

Currently, the information for the minimum wage in 2023 is not available. In 2022, the minimum salary in Spain was €950 per month source. This figure may change in 2023, so it is essential to stay updated on minimum wage regulations in Spain.

How do salaries in Barcelona and Madrid compare?

Salaries in Spain's major cities, Barcelona and Madrid, are generally higher than in other regions due to the higher cost of living and the presence of larger companies offering more significant employment opportunities. While the exact figures may vary depending on individual factors, both cities provide comparatively higher earning potential than other parts of Spain.

How does the average salary in Spain convert to US dollars?

Using the average salary in 2023 (€2,250 per month), the conversion to US dollars depends on the current exchange rate. As an example, if the USD/EUR exchange rate is 1.1, the monthly average salary in Spain would be approximately $2,475 in US dollars. However, exchange rates can fluctuate over time, affecting the conversion value.

Is the standard of living within Spain attainable with the average salary?

The standard of living attainable with the average salary in Spain depends on factors such as family size, personal spending habits, and location. While Spain's average salary is sufficient for a single individual to have a comfortable life in many parts of the country, it may not be enough to support a family with multiple dependents or to maintain a higher standard of living in major cities, where the cost of living is higher.

Article By

Travis Kliever

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.

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