If you’re living out here and looking for work, it’s worth taking time to look at what you could be earning.
How Much Is The Average Salary In Spain
Any job offer can sound like a huge breakthrough, but does it pay enough? As you weigh your options, you’re probably wondering what the average salary in Spain is and whether it’s enough to support your lifestyle. With the cost of living as it is, your finances can have a big impact on your quality of life. Luckily, workers in Spain earn a reasonable living, with the country boasting the seventh-highest minimum salary in Europe. But what does that mean for you? In this article, we’ll probe the details of the minimum wage in Spain, the average salary by sector, job level, and city, and what you can expect as an international worker.
The minimum wage in Spain
Before considering the average salary in Spain, it’s necessary to understand the minimum wage in the country. The minimum wage, also known as the Salario Mínimo Interprofesional (SMI), is the lowest amount an employer can legally pay their employees.
The SMI, or Minimum Interprofessional Wage, is the minimum wage that, by law, any worker must receive, regardless of his or her job or profession. It is fixed per day and per month.
Minimum interprofessional wage in Spain is a benchmark to keep in mind when evaluating if you earn a good salary in your job in Spain.
SMI in 2024
The Minimum Interprofessional Wage rises by 5%, to 1,134 euros. This increase will already be reflected in February’s pay slips, but is retroactive to January 1, 2024. The SMI in for this year will be as follows:
SMI 2024 year: 15,876 euros.
SMI 2024 month (14 payments): 1,134 euros per month.
SMI 2024 month (12 payments): 1,323 euros per month.
SMI for domestic employees / hour: 8.87 euros per hour.
The legal minimum of vacation days
Wage earners in Spain are entitled to a minimum of 30 calendar days of paid annual leave, which applies to full-time, part-time, interns, apprentices, and trainees. Employers cannot replace these vacation days with financial compensation, and if an employment contract ends before using all holidays, the employer must compensate the leftover days.
What counts toward the minimum wage?
Wage-wise, the statutory minimum wage in Spain only applies to monetary payments. In-kind benefits, overtime payments, profit shares, and end-of-the-year bonuses do not count toward the minimum salary. This means that your employer cannot reduce your salary below the minimum wage by offering non-monetary benefits, and it’s vital to understand both the minimum wage and average salary benchmarks.
Days worked, including overtime, are calculated into your hourly rate, which is then used to determine your minimum wage. It’s necessary to understand what constitutes your minimum wage to ensure you’re being fairly compensated.
Variations and exceptions
Clearly, the minimum wage in Spain is not a one-size-fits-all solution. There are various exceptions and variations that can affect your salary.
Part-time workers in Spain
Spanish labour laws also apply to part-time workers, who are entitled to a minimum wage calculated based on the hourly rate. Even if the working relationship lasts less than three months, part-time workers are protected by general labour laws.
Apprentices, interns, and trainees
An important aspect of Spain’s labour laws is the protection of students who receive on-the-job training. They must receive some form of payment for their work, which should match the statutory minimum wage of regular employees in Spain, but in proportion.
Trainees, in particular, have specific rules governing their work hours and salaries. Under Spanish labour laws, student work hours may not exceed 65% during the first year and 85% during their second year. If there isn’t a collective labour agreement in place, their salaries may not be lower than 60% during the first year and 75% during the second year.
Minimum wage calculator in Spain
Spainish workers can use a salary calculator to ensure their gross salary complies with Spanish law. This tool can help you determine if your employer is paying you the minimum income as set by the government or collective bargaining agreement.
Variations in salaries can occur depending on the industry, location, and collective bargaining agreements. For instance, workers in certain sectors, such as energy, finance, and information, tend to earn higher average annual wages in Spain. Using a salary calculator can help you navigate these variations and ensure you’re earning a fair wage. If you are unsure, you could always check with the Citizens Advice website, for more help.
Salaries and Wages for International Workers
Keep in mind that as an international worker in Spain, you’re entitled to the same minimum wage as Spanish citizens. Additionally, understanding the minimum wage and average salary can help you assess your financial planning. Employment law doesn’t differentiate between nationalities, so your employer must legally pay you the minimum income set by the government or collective bargaining agreement.
However, there might be some exceptions for non-taxpaying residents who are employed by an international company. It’s imperative to understand the specific rules that apply to your situation. If you’re moving to Spain for work, you can take advantage of opportunities to upskill with job training programs, which may lead to higher salaries.
Additionally, having your academic qualifications recognized in Spain can also secure you a higher salary. Don’t hesitate to explore online platforms that provide salary information, such as Glassdoor or Paylab, to get an idea of what your profession will likely pay in Spain.
Note, your employer must comply with Spanish labour laws, ensuring you receive fair compensation for your work. So, take the time to understand your rights and negotiate your salary accordingly.
The average salary in Spain
After considering the minimum wage in Spain, let’s probe the average salary in the country. Your salary in Spain will depend on various factors, including your gender, age, education level, professional experience, location, and sector of work.
Average salary by sector
Spanish industries have varying average salaries. According to the National Statistics Institute (INE), people working in accommodation and food services earned, on average, €14,809 per year (2021). In contrast, companies within the sectors of energy, finance, and information pay the highest average annual wages, with salaries ranging from €35,870 to €50,646.
The average salary by job level
On average, wages can vary drastically among job levels. For instance, the gross monthly salary ranges for different sectors are: Commerce (€1,251–4,754), Customer support (€1,280–3,823), Education, Science, Research (€1,384–3,091), and so on. Such awareness of the average monthly salary is key.
Salary differences can be significant depending on your job level. If you’re moving to Spain for work, having your academic qualifications recognized and taking advantage of job training programs can help you secure a higher salary.
Average salary by city
Salary expectations also vary by location. Generally, the more populated the area, the higher the average salary. In 2022, workers in Madrid, Barcelona, Valencia, Málaga, and Seville earned the highest average annual wages, ranging from €36,400 to €38,400.
Plus, salaries can differ significantly depending on the city you live in. It’s necessary to research the average salary for your profession in the specific city you’re interested in.
Salary checker
On various online platforms, you can find out what your profession will likely pay in Spain. Statista is a helpful source to determine the average monthly salary for your job in Spain. Websites like Glassdoor and Paylab offer salary checkers to help you determine your expected income.
The salary checker tools can provide valuable insights into the average salaries for different professions and locations in Spain, helping you make informed decisions about your career and relocation.
The gender pay gap in Spain
Your salary in Spain can be affected by many factors, including your gender. Unfortunately, Spain still grapples with a significant gender pay gap.
Historical context
Any effort to understand the current state of the gender pay gap in Spain must consider its historical context. The country has made significant strides in recent years, but the wage gap persists, affecting the overall average monthly salary.
Current statistics
Any examination of the gender pay gap in Spain must rely on recent data. According to the 2023 Global Gender Gap Report by the World Economic Forum (WEF), women in Spain now earn 8.1% less than men, a marked improvement from previous years.
This progress is encouraging, but there is still much work to be done. The gap is disproportionately higher in the private sector than in the public sector. Eurostat reports a 12.8% difference for private companies, highlighting the need for continued efforts to address this disparity.
Efforts to close the gap
With the introduction of labour reforms, Spain has taken steps to address the gender pay gap. The government has implemented measures to promote transparency and fairness in salary negotiations, aiming to reduce the disparity between men and women.
Another crucial aspect of these efforts is the promotion of equal opportunities and education. By encouraging women to pursue careers in traditionally male-dominated fields, such as STEM, Spain can help bridge the gap and create a more equitable workforce.
What to do if you’re not paid the minimum wage
Unlike many other countries, Spain has a robust labour law system that protects workers’ rights, including the right to a minimum wage. If you’re not paid the minimum wage, there are several steps you can take to address the issue.
Firstly, it’s crucial to understand that you have the right to fair compensation for your work. The minimum wage in Spain is set by the government, and employers are legally bound to pay it. If you suspect that you’re not being paid the minimum wage, you should take action to protect your rights.
Reporting to authorities
One of the first steps you can take is to report the issue to the authorities. You can contact the Spanish Labor Inspectorate (Inspección de Trabajo y Seguridad Social) or the Ministry of Labor and Social Economy (Ministerio de Trabajo y Economía Social) to file a complaint. They will investigate your case and take appropriate action against your employer if they find any violations.
Seeking legal advice
One of the best ways to navigate the complex Spanish labour laws is to seek legal advice from a qualified lawyer. They can help you understand your rights, gather evidence, and build a strong case against your employer. A lawyer can also represent you in court if necessary.
Paid less than the minimum wage can be a stressful and frustrating experience. However, with the right legal guidance, you can fight for your rights and receive the compensation you deserve. Do not forget, you don’t have to face this situation alone; seeking legal advice can provide you with the support and expertise you need to succeed.
Union support
What kind of support can you expect from your union? In Spain, labour unions play a crucial role in protecting workers’ rights, including ensuring fair minimum wage and advocating for a reasonable average monthly salary. If you’re not paid the minimum wage, your union can provide you with guidance, support, and representation. They can also help you negotiate with your employer or file a collective complaint on behalf of all affected workers.
For instance, your union can help you understand the collective bargaining agreement (convenio colectivo de trabajo) that applies to your industry or sector. They can also provide you with information on the minimum wage rates and any exceptions that may apply. With union support, you can feel more confident in your fight for fair compensation.
What to do if your salary is too low in Spain
Many expats and locals alike may find themselves in a situation where their salary is not sufficient to cover their living expenses in Spain. If you’re struggling to make ends meet, don’t worry – there are steps you can take to improve your financial situation.
Negotiating with your employer
Navigating a salary negotiation with your employer can be intimidating, but it’s often worth a try. Prepare a solid case for why you deserve a raise, highlighting your achievements and the value you’ve added to the company. Be confident, yet respectful, and be prepared to discuss specific numbers and expectations, especially regarding your monthly salary in Spain.
Looking for better opportunities
With the job market in Spain being relatively competitive, it’s necessary to stay proactive and keep an eye out for better-paying job opportunities. Update your resume, LinkedIn profile, and online presence to increase your visibility to potential employers. Network with people in your industry, and consider attending job fairs and events to explore new possibilities.
With the rise of remote work, you may also want to explore job opportunities outside of Spain or consider freelancing or consulting. This can provide more flexibility and potentially higher earning potential.
Developing new skills
With the ever-changing job market, it’s crucial to stay ahead of the curve by acquiring new skills and certifications. Invest in courses, training programs, or attend conferences related to your field to increase your earning potential. This will not only make you more attractive to potential employers but also boost your confidence and job satisfaction.
The key to success lies in being proactive and taking charge of your financial situation, ensuring you negotiate for an average monthly salary that meets your expectations. By negotiating with your employer, looking for better opportunities, and developing new skills, you can improve your salary and enjoy a better quality of life in Spain.
Regional differences in salaries
Not all regions in Spain are created equal when it comes to salaries. Depending on where you live and work, your paycheck can vary significantly.
Salaries in Madrid
Madrileños enjoy some of the highest salaries in the country, with an average annual wage of €38,400. As the capital city, Madrid is a hub for many industries, including finance, technology, and healthcare, which tend to offer higher paying jobs.
Salaries in Barcelona
Barcelonians are not far behind, with an average annual salary of €37,700. As a major tourist destination and a hub for startups and innovation, Barcelona offers a range of job opportunities in fields like hospitality, technology, and entrepreneurship.
Differences in cost of living, industry, and job opportunities contribute to the varying salaries between Madrid and Barcelona. While both cities offer high paying jobs, the types of industries and companies present in each city can affect the average salary.
Salaries in other major cities
For those looking to live and work in other parts of Spain, salaries can vary significantly. In Valencia, Málaga, and Seville, average annual salaries range from €36,400 to €37,000. These cities offer a lower cost of living compared to Madrid and Barcelona, but still provide access to a range of job opportunities.
Salaries in these cities are often influenced by the local economy, industry, and job market. For example, Valencia is known for its strong manufacturing sector, while Málaga is a hub for tourism and technology. Understanding the local job market and industry trends can help you negotiate a fair salary.
Industry-specific Salaries
Now, let’s look into the average salaries in Spain by industry. Understanding the average salaries in different sectors can help you negotiate your salary or decide which industry to pursue a career in.
Here’s a breakdown of the average salaries in various industries:
Technology and IT
To give you an idea of the salaries in the tech industry, software engineers in Spain can expect an average salary of around €45,000 per year, while IT project managers can earn around €60,000 per year. These figures are higher than the national average, making the tech industry an attractive option for those with the right skills.
Healthcare and Pharmaceuticals
On average, healthcare professionals in Spain earn around €31,837 per year, according to the National Statistics Institute (INE). This figure includes doctors, nurses, and other medical staff.
This sector is crucial to the Spanish economy, and salaries can vary depending on factors like location, experience, and specialization. For example, doctors specializing in certain fields like cardiology or oncology can earn significantly higher salaries, upwards of €80,000 per year.
Finance and Banking
To put the finance industry into perspective, financial analysts in Spain can earn an average salary of around €40,000 per year, while investment bankers can earn upwards of €80,000 per year.
Banking is a significant sector in Spain, with many international banks operating in the country. Salaries in this industry tend to be higher than the national average, especially for those in senior positions or with specialized skills. For example, a portfolio manager at a large bank in Madrid can earn around €100,000 per year.
Salary Growth and Projections
For those looking to understand the salary landscape in Spain, it’s imperative to examine the historical trends and future predictions to make informed decisions about their career and finances.
Historical Trends
Historically, salaries in Spain have seen steady growth, with occasional fluctuations due to economic changes. Monitoring annual wages in Spain can offer a clearer picture of these trends. According to data from the National Statistics Institute (INE), the average annual salary in Spain has increased by approximately 10% over the past five years. This growth can be attributed to improvements in the country’s economy, as well as efforts to address the gender pay gap.
Future Predictions
Historically, Spain’s economy has been driven by its service sector, which is expected to continue growing in the coming years. As a result, salaries in this sector are likely to increase, particularly in industries such as tourism and finance.
Predictions suggest that the average salary in Spain will continue to rise, albeit at a moderate pace. With the government’s efforts to address the gender pay gap and improve labour laws, it’s likely that salaries will become more competitive, especially in industries with high demand for skilled workers.
Impact of Economic Changes
For those considering a move to Spain or already living in the country, it’s crucial to understand how economic changes can impact salaries. Economic fluctuations, such as recessions or periods of high growth, can significantly influence salary trends.
To mitigate the effects of economic changes, it’s imperative to stay informed about industry trends, labour laws, and government initiatives. By doing so, you can make informed decisions about your career and finances, ensuring that you’re prepared for any changes that may come your way.
Taxes and Benefits
Despite the attractive average salaries in Spain, it’s crucial to understand the taxes and benefits that come with your paycheck. Knowing the monthly salary in Spain is just as important as understanding how much you will actually take home. After all, your take-home pay will be affected by the taxes you pay and the benefits you receive.
Income Tax Rates
With a progressive tax system in Spain, your income tax rate will depend on your taxable income. There are two types of income tax: state income tax (IRPF) and regional income tax. The state income tax rates range from 19% to 45%, while regional income tax rates vary between 1.75% and 11.5%. Your overall tax rate will be a combination of both.
Social Security Contributions
Security is a top priority in Spain, and social security contributions are mandatory for all employees. These contributions fund various benefits, including healthcare, unemployment benefits, and retirement pensions. As an employee, you’ll contribute around 4.7% of your gross salary towards social security, while your employer will contribute around 23.6%.
Another important aspect of social security contributions is that they’re calculated based on your gross salary. This means that your contributions will increase as your salary increases. However, there’s a cap on the maximum contribution amount, which is currently set at €4,139.40 per month.
Employee Benefits
Benefits are an crucial part of your overall compensation package in Spain. As an employee, you’re entitled to various benefits, including paid annual leave, public holidays, and sick leave. You may also receive additional benefits, such as health insurance, life insurance, or a company car, depending on your employer and collective bargaining agreement.
Social benefits are also an integral part of the Spanish social security system. As an employee, you may be eligible for benefits like maternity or paternity leave, childcare subsidies, or housing allowances. These benefits can significantly impact your overall quality of life in Spain.
Cost of Living in Spain
Once again, understanding the cost of living in Spain is crucial to determine whether your salary is sufficient to maintain a comfortable lifestyle. We have looked to compare the cost of living out here, compared to back in the UK, in this article here and it was quite an eye opener.
Housing Costs
One of the significant expenses you’ll face in Spain is housing. Rent prices vary greatly depending on the region, city, and type of accommodation. On average, you can expect to pay around €800-€1,200 per month for a one-bedroom apartment in a city center. Knowing this helps in negotiating a good salary for your job in Spain.
Food and Transportation Costs
With a moderate lifestyle, you can expect to spend around €300-€500 per month on food and transportation. This includes eating out occasionally, buying groceries, and using public transportation.
It’s worth noting that food prices in Spain are relatively affordable, especially when compared to other Western European countries. A meal in a mid-range restaurant can cost around €15-€20 per person, while a liter of milk or a loaf of bread can cost around €0.80-€1.20.
Lifestyle Expenses
Living in Spain means embracing a rich cultural heritage and enjoying various leisure activities. You’ll need to budget for entertainment, travel, and other lifestyle expenses. On average, you can expect to spend around €500-€1,000 per month on these expenses, depending on your personal preferences and habits.
For instance, visiting museums, attending concerts, or taking weekend trips to nearby cities can add up quickly. However, with some planning and research, you can find affordable options and make the most of your free time in Spain.
Job Market Outlook
All signs point to a promising job market in Spain, with employment rates on the rise and job opportunities aplenty.
Employment Rates
To put your mind at ease, Spain’s employment rates have been steadily increasing over the years, positively affecting the average monthly salary for many sectors. With a strong economy and a growing workforce, you can expect a higher demand for skilled workers like yourself.
Job Opportunities
Employment opportunities in Spain are diverse and abundant, with many industries experiencing growth. From technology and healthcare to finance and tourism, there’s a wide range of sectors to explore.
Plus, with the country’s focus on innovation and entrepreneurship, you may find opportunities to start your own business or join a startup. The Spanish government has implemented various initiatives to support entrepreneurs and small businesses, making it an attractive environment for job seekers.
Skills in Demand
Any industry you’re interested in will require specific skills, and Spain is no exception. Currently, there’s a high demand for skills in areas like data science, digital marketing, and software development.
With the rise of remote work, having skills in cloud computing, cybersecurity, and artificial intelligence can also give you a competitive edge in the job market. Additionally, proficiency in languages like English, German, and French can be beneficial in the Spanish job market.
To wrap up
Now that you’ve got a better understanding of the average salary in Spain for 2024, you can make more informed decisions about your career and finances. From the minimum wage to average salaries by sector, job level, and city, you’re equipped with the knowledge to navigate Spain’s job market. This complete guide will help you understand how much you could earn in Spain. Remember to consider factors like the gender pay gap, collective bargaining agreements, and labour laws that may impact your salary. With this information, you’ll be better prepared to negotiate your salary, find the right job, and enjoy a comfortable quality of life in Spain.
