The average nominal salary in Spain increased by 5.4% in 2023 to €1,920 per month. This is an all-time high. However, still, the Spaniard has less to spend.
This is evident from the Adecco Employment Opportunities and Satisfaction Monitor.
This means that the recovery process continues, after an increase of eleven quarters in a row. On a year-on-year basis, average incomes rose in all regions. To reach these conclusions, Adecco has reviewed salary changes over the past eight quarters.
Differences between regions
The average salary in all autonomous communities was at its highest level ever in nominal terms (euros). However, there are differences between the regions. In the Balearic Islands, the increase is the largest at 7.7%. This is followed by Madrid with 6.7% and Navarre with 6.2%. Extremadura, Cantabria and the Canary Islands recorded the smallest growth, at 3.1%, 3.2% and 4% respectively.
Gap widened
The gap between the regions with the highest and the lowest salaries widened in 2023, reaching €749 (+15% year-on-year). The gap between the average of the three communities with the highest salary and the three communities with the lowest salary was €578 (+10.3% year-on-year).
The report also states that four regions have an average salary that is higher than the national average because the communities are ranked according to their salary.
Average salary highest in Madrid region
Madrid remains in first place with an average salary of €2,282 per month (+6.7% year-on-year). The Basque Country follows with €2,197 per month (+4.6% year-on-year). Navarre is in third place with €2,093 per month (+6.2% year-on-year). Catalonia occupies fourth place with €2,056 per month (+5.2% year-on-year).
According to the survey, these four communities have not only increased their salaries year-on-year, but the increase is also greater compared to that of 2021 and 2022.
In Extremadura, salary is the lowest
Extremadura is in last place with an average salary of €1,533 per month. The region had the lowest year-on-year increase, at 3.1%. The increase is also less than last year. It is the only region with a salary of less than €1,600 per month.
Spaniards have an average of 610 euros less to spend
The study also shows that an average employee had €610 less to spend last year due to the 2.6% drop in purchasing power. In 15 regions, purchasing power has declined. Only the Balearic Islands (+€674 per year) and the Canary Islands (+€399) saw an increase in purchasing power.
In the Madrid region, residents had an average of €316 less to spend, and in La Rioja (€326 loss), Catalonia (€387 loss) and Navarra (€462 less) the losses are also lower than the national average.
In a number of regions, purchasing power fell by more than €1000 per year. The most unfavourable cases are the Basque Country, with a loss of €1,265 per year, Asturias with a reduction of €1,181 per year and Galicia with a reduction of €1,047.
In Cantabria, the loss amounts to €937 per year. This is followed by Castile-La Mancha (€880 less per year), the region of Murcia (€851 lost per year), Castile and León (€819 less) and Aragón (€811 per year). The loss of purchasing power in the regions of Andalucia, Extremadura and Valencia is not specifically mentioned.
