Salaries in Spain are lower compared to other countries due to a combination of factors such as a high unemployment rate, a large number of temporary contracts, and a cultural tendency towards job security over higher wages.
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Salaries in Spain are lower than in other countries for a variety of reasons. One of the main factors is the high unemployment rate in Spain, which means that there is a surplus of workers and less competition among employers to attract and retain staff. This low competition results in low salary levels.
Another contributing factor is the prevalence of temporary contracts in Spain. Temporary contracts are more common in Spain than in other European countries, with over a quarter of the workforce on such contracts in 2019. This means that job security is low, and employees are less likely to negotiate higher salaries or benefits.
Culturally, Spaniards tend to prioritize job security over higher wages. This mindset is tied to the country’s economic instability in the past, which has led to a culture of caution and an emphasis on long-term stability. As a result, workers might accept lower salaries in order to secure steady employment.
According to the OECD, in 2019 the average gross salary in Spain was €23,000 a year. This is significantly lower than the average salary in other European countries such as France, Germany, and the UK.
In conclusion, as stated by Mark Stucklin, a Spanish property consultant, “Spain is a cheap country to live in, but wages are lower.” This point demonstrates that Spanish citizens are able to live well on lower salaries due to the lower cost of living in Spain. However, despite the lower cost of living, lower salaries can still be difficult to manage when it comes to major expenses. A chart with a comparison of average salaries across Europe can be found below.
|Country||Average Gross Salary (EUR/year)|
It is important to note that while the reasons for lower salaries in Spain may be complex, it is an issue that effects many people in the country, regardless of their profession or industry.
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Spain’s unstable political environment is attributed to different factors, including the country’s constitution, the Catalan independence movement, rising nationalism, corruption scandals within the People’s Party, and the emergence of new political movements fueled by the economic crisis and discontent among citizens. Currently, Pedro Sanchez’s socialist government faces challenges with the rising trends in nationalism, economic problems, and high unemployment rates. Additionally, Spain’s shift to a multi-party system, where populist parties are gaining ground, makes it difficult to form a strong government.
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The precariousness of employment for a large part of the population in the face of the business world is an endemic historical evil in Spain. The insecurity created by the fear of unemployment makes workers accept low wages and working conditions that would be unthinkable in other developed countries.
One possible reason why Spain salaries are so low is that the distribution of worker salaries is becoming polarized, with more workers on low wages and fewer on average salaries. Another possible reason is that inflation has reduced the purchasing power of citizens and increased the gap between the average Spanish wage and the EU average. Spain also has one of the highest rates of job insecurity in Europe, which may affect the wage levels.
“The distribution of worker salaries is becoming polarized. There are fewer and fewer employees with average salaries and more and more workers on low wages,” says Marcel Jansen, who teaches at the Autonomous University of Madrid’s School of Economics. I share an apartment and really watch what I spend.
Despite having the highest average salary in history, the average Spanish wage is almost 450 euros lower than the EU average and continues to have one of the highest rates of job insecurity in Europe. Inflation has eaten into wage increases and reduced citizens’ purchasing power to an extent not seen for thirteen years.
Also, people ask
Is salary low in Spain? The response is: The average annual salary in Spain is not very high. Workers earn on average 23,000 EUR (25,300 USD) and that is already a well-paying job. Minimum wage is about 1,000 EUR (1,100 USD) per month.
What is decent salary in Spain? Response to this: The average salary in Spain as of 2022 is around €27,000/year.
Thereof, Why are European salaries so low compared to us? As a response to this: In general, wages in the United States tend to be higher than those in Europe, particularly for skilled and high-paying jobs. Part of the reason for this is that the cost of living in the U.S. is usually higher than in Europe. This means that workers need to make more money to keep their standard of living the same.
People also ask, Do jobs in Spain pay well? The answer is: The average salary may vary significantly by profession and region, but in general workers in Spain receive a monthly net salary of 1,200 EUR (1,350 USD). The average gross salary is just under 1,850 EUR (2,080 USD) per month, which adds up to 25,900 EUR (29,200 USD) per year.
Also asked, Who makes the lowest salary in Spain?
Response will be: According to INE data, women, young people, junior workers and temporary workers have the lowest wages in Spain. The average female salary stood at €1,852 per month in 2020, an increase from the €1,773.3 average in 2019.
Accordingly, What is the average salary in Spain in 2022?
In 2022, the average salary in Spain is €2,710 gross per month or €32,520 per year. Since this represents the average, 25% of the population makes less than €1,600 and 75% earns less than €7,080. When compared to other European countries, Spain’s average net salary sits in the middle.
Keeping this in consideration, What is the living wage in Spain? The living wage in Spain is calculated to be about EUR 810 a month in 2017, a shade above the monthly minimum wage paid to most employees. Trade Unions in Spain are campaigning for further increases to the minimum wage, to make the monthly salary, when calculated over 14 payments, above EUR 800.
Also question is, What is the pay gap in Spain?
The reply will be: The pay gap is still having a devastating effect on women in Spain, with four in ten female workers making less than €1,336.6 per month, compared to just one in five men. According to INE data, women, young people, junior workers and temporary workers have the lowest wages in Spain.
Who makes the lowest salary in Spain?
Answer will be: According to INE data, women, young people, junior workers and temporary workers have the lowest wages in Spain. The average female salary stood at €1,852 per month in 2020, an increase from the €1,773.3 average in 2019.
Keeping this in consideration, How much does a full-time worker make in Spain?
As an answer to this: The mean annual earnings for a full-time worker in Spain are €29,994, which is lower than many other western European countries. However, Spain also has a lower cost of living than most of its western European neighbors. A full-time worker may take 22 working days (30 calendar days) of paid holiday time annually.
What is the pay gap in Spain?
The pay gap is still having a devastating effect on women in Spain, with four in ten female workers making less than €1,336.6 per month, compared to just one in five men. According to INE data, women, young people, junior workers and temporary workers have the lowest wages in Spain.
Considering this, What is the average salary in Spain in 2022?
Answer will be: In 2020 for example (the latest official data covering the whole spectrum of calculations, and the evidence suggests little has changed in terms of wages in 2022), the average annual salary in Spain was €24,395, the median salary €20,351, yet the most common or ‘ modal ’ salary was just €18,490 – a whopping 32 percent lower than the average wage.