Average salaries in Spain

Spain's salary landscape is diverse, influenced by regional economic conditions, industries, and job markets. Whether you're planning to relocate, advance your career, or stay informed, having a clear understanding of salary dynamics is essential. This article offers a detailed breakdown of salaries across Spain in 2024, including regional variations, key factors influencing wages, and a guide to living comfortably in different parts of the country.

Understanding a payroll in Spain

In Spain, wages are typically structured with a combination of several elements, each of which plays a key role in determining an employee’s overall earnings. Let's start by an overview of the primary components of a salary in Spain:

• Base Salary (salario base): This is the fixed amount of money agreed upon in the employment contract. It’s the core component of your wage and is based on the work you perform, without including any bonuses or extras. The base salary usually represents around 60-70% of the total income.
• Bonuses or extras (complementos salariales): These are additional payments that supplement the base salary. They can be awarded for various reasons:
  • Seniority: For employees who have worked for a company for an extended period, this is often given as a reward for loyalty and experience.
  • Productivity or performance bonuses: Based on how well an employee performs, this can add to their base salary.
  • Overtime (horas extraordinarias): Any hours spent beyond the standard working day are compensated as overtime, usually at a higher rate. These bonuses typically make up about 10-20% of the total wage.
  • Prorated extra payments (pagas extraordinarias): In Spain, it’s common to receive two extra payments per year, one in Summer and one in December. These are equivalent to a month’s salary each, effectively giving employees 14 monthly payments per year instead of 12. However, in some cases, these extra payments are distributed across the year in smaller increments added to monthly paychecks. These payments represent approximately 10-15% of the total annual income.
• Deductions: Spanish wages are subject to deductions, which include the following:
  • Social Security contributions: Both the employee and the employer contribute to Spain’s social security system. This typically amounts to around 6-7% of the employee's salary.
  • Income tax (IRPF - Impuesto sobre la Renta de las Personas Físicas): The amount of tax withheld depends on the employee’s annual income and personal situation, such as marital status or dependents. Rates can range from 19% to 47%, but lower earners pay much less.

Where are salaries higher in Spain?

Salaries vary considerably across Spain depending on the city and region. Major urban centres such as Madrid and Barcelona typically offer the highest salaries due to their economic size, demand for skilled labour, and higher cost of living. Below is an overview of average monthly gross salaries across some of Spain’s key cities:

Cost of living vs. salary levels

While Madrid and Barcelona lead in terms of salaries, the cost of living in these cities is also among the highest in Spain. Rent, transportation, and leisure activities are typically more expensive compared to other parts of the country. In contrast, cities such as Valencia, Malaga, and Seville offer slightly lower wages, but their lower living costs make them attractive options for professionals and families looking for a balanced lifestyle.

Growing economic hubs in Spain

Interestingly, cities like Zaragoza and Málaga have seen a surge in economic growth over the past decade, driven by an influx of tech startups and foreign investment. This has led to increased job opportunities and salaries, particularly in the technology and engineering sectors. Granada, although smaller in size, has a robust academic and cultural environment, contributing to stable but lower salary levels. Smaller cities like Alicante and Cádiz have a lower cost of living but offer fewer high-paying job opportunities.

Factors that influence salaries in Spain

Several factors impact salary levels across Spain, ranging from industry type to individual qualifications. These influences are important for both job seekers and expatriates looking to understand the local job market.

Industry and sector

Certain industries in Spain are more lucrative than others. For example:

• Technology: The tech sector continues to grow, particularly in Madrid and Barcelona. Roles such as software developers, data scientists, and IT consultants can earn between €40,000 and €80,000 annually, depending on experience.

• Engineering: Civil, mechanical, and electrical engineers can expect salaries ranging from €35,000 to €65,000. The renewable energy sector is also gaining traction, offering specialised engineers competitive wages.

• Finance and banking: Spain’s financial sector remains strong, with salaries for financial analysts ranging from €40,000 to €60,000, and senior positions exceeding €100,000, especially in multinational firms based in Madrid.

Regional disparities

Salary discrepancies between regions can be significant. For instance, the Basque Country, known for its industrial base and high concentration of manufacturing, offers salaries above the national average. In contrast, regions like Andalusia and Extremadura, which have higher unemployment rates and rely more on agriculture and tourism, typically offer lower wages.

Education and qualifications

Higher education and specialised qualifications directly influence salary potential. A bachelor’s degree can increase your earning potential, but having a master’s degree or PhD opens doors to higher-paying roles, particularly in sectors such as healthcare, education, and engineering. Specialised certifications in IT, project management, or finance are also highly valued and can significantly boost salary levels.

Remote work and the digital economy

Post-pandemic, remote work has become increasingly common, especially in tech and consulting roles. This trend has allowed professionals to live in lower-cost regions while earning salaries tied to higher-paying cities, such as Madrid or Barcelona. Digital nomads and expatriates are also taking advantage of Spain’s relatively affordable cost of living while working for international companies.

What salary do you need for a comfortable life in Spain?

Determining the salary needed for a comfortable life in Spain depends heavily on your lifestyle and the region you choose to live in. While the cost of living in Spain is generally lower than in other Western European countries, there are considerable differences between cities and rural areas.

Cost of living breakdown for individuals

For single individuals living in large cities like Madrid or Barcelona, a net monthly salary of €2,700 is often enough to live comfortably. This covers rent, utilities, groceries, transportation, and leisure activities. A breakdown of typical monthly expenses might look like this:

• Rent: €800 to €1,200 for a one-bedroom apartment

• Utilities: €100 to €150

• Groceries: €250 to €350

• Public transport: €50 to €100

• Leisure and entertainment: €200 to €300

These figures may vary based on lifestyle choices, but they give a general idea of what’s needed to maintain a comfortable standard of living in major urban areas.

Families and additional costs

For most families in Spain, having two incomes is essential to maintain a reasonable standard of living, particularly in urban centres. According to Statista, the average gross salary per worker is €29,113 per year, or €2,426 per month, though this can vary significantly by region and sector.

For families, a combined monthly income of €4,000 is typically sufficient in larger cities. In smaller cities, such as Granada or Murcia, a family could live comfortably on €3,000 per month, as the living costs are substantially lower. This considers additional costs such as:

• Childcare: €300 to €600 per month, depending on the age of the child and the type of care.

• Education: Private school tuition can range from €500 to €1,500 per month, although public education is free.

• Healthcare: While Spain’s public healthcare system is excellent, some families opt for private health insurance, which costs an additional €50 to €150 per person, depending on coverage.

In cities such as Madrid, Barcelona, and Bilbao, a combined family income of €40,000 to €50,000 annually is typically necessary for a comfortable lifestyle. This figure accounts for rent or mortgage payments, utility bills, food, healthcare, education, and leisure activities. The financial demands in these cities are higher, but dual incomes help to manage costs.

In smaller cities or rural regions, a combined household income of €30,000 to €40,000 annually can still offer a comparable quality of life. Lower housing costs, less expensive groceries, and more affordable healthcare options make it possible for families to enjoy a good standard of living on lower salaries in these areas.

Spain’s minimum wage in 2024

As of 2024, Spain’s minimum wage stands at €1,134 per month if paid over 14 months, or €1,323 per month when distributed over 12 months. This amounts to an annual gross income of €15,876, reflecting a 5% increase from the previous year. The government’s push for wage increases aims to improve living standards for the 2.5 million workers earning the minimum wage.

Sectors most impacted by minimum wage laws

The sectors most affected by the minimum wage include:

• Agriculture: Farmworkers, who are essential to Spain's large agricultural industry, benefit directly from minimum wage increases.

• Hospitality: Workers in hotels, restaurants, and bars also rely heavily on the minimum wage, especially in tourist-heavy regions like the Balearic Islands and Costa del Sol.

• Domestic services: Housekeepers, nannies, and caregivers are other groups that see their earnings impacted by these wage changes.

Wage growth and inflation

Despite wage growth, inflation and rising costs of living in urban areas continue to put pressure on lower-income households. While the minimum wage is an essential safety net, many workers in sectors such as agriculture and hospitality still find it challenging to meet all living costs, particularly in high-cost regions like Madrid and Barcelona.

Sector-specific salary insights

Spain’s job market is diverse, with each industry offering a different salary range depending on experience, qualifications, and location. Below are more detailed insights into some key sectors:

Education and public sector

• Teachers in public schools typically earn between €24,000 and €35,000 annually, depending on experience and the region. Those working in private or international schools can earn higher wages, especially in major cities.

• Public sector employees, including government workers and healthcare staff, generally enjoy stable salaries and benefits. Salaries in the public sector start around €24,000 per year and can go up to €50,000 or more for senior roles.

Freelancers and the gig economy

Freelancers and gig workers are increasingly part of Spain’s workforce, particularly in creative industries, tech, and consulting. Freelancers can earn competitive rates, though income varies widely based on the nature of the work, experience, and client base. Many freelancers working for international clients benefit from Spain’s relatively lower cost of living while earning global market rates.

Understanding Spain’s salary landscape

Spain’s salary structure is shaped by numerous factors, from geographic location and industry to education and experience. While Madrid and Barcelona offer the highest salaries, they also come with the highest living costs. Cities like Valencia, Málaga, and Seville provide a balanced mix of good salaries and affordable living, making them attractive for both locals and expatriates. Smaller cities and rural areas offer more affordable living but fewer high-paying job opportunities.

Key takeaways for professionals and expatriates

For most professionals, a net monthly salary between €2,700 and €4,000 ensures a comfortable life, depending on family size and city of residence. The minimum wage of €1,134 provides a basic level of income, but salaries vary widely depending on the sector and region.

Planning your career or relocation

As you consider Spain’s job market, staying informed on salary trends is essential. Reliable sources such as the Spanish Statistical Institute (INE) and salary platforms like SalaryExplorer and SalaryExpert can provide up-to-date data to guide your decisions. Understanding these dynamics will help you make informed choices about your career or relocation, ensuring a smooth transition into Spain’s job market in 2024.

For more detailed guidance, be sure to check out our comprehensive guides on moving to Spain, which cover everything from legal requirements to lifestyle adjustments.