Spain Average Salary: Detailed Income Insights for 2025

What is the Average Salary in Spain?

The average gross annual salary in Spain as of 2025 is roughly €28,050, equating to about €2,338 per month. This reflects Spain's economic recovery and the growing need for qualified workers in a variety of industries. Industry, experience, education, and geography are some of the variables that affect income levels in Spain.

In comparison to rural areas, urban areas - especially Madrid and Barcelona - generally offer higher salaries. For example, the average annual salary in Barcelona is about €33,840, while in Madrid it is between €35,000 and €40,000.

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Comparative Profession Salary Earnings in Spain

Here’s a general breakdown of monthly and annual salary ranges in Spain, based on job level:

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‍Note: Exchange rate used: €1 = $1.10 USD.

These figures come from the Spanish National Statistics Institute (INE) and industry salary reports for 2025.

These figures can vary based on factors like industry, location, and company size. Salaries in Spain also vary quite a bit depending on location. Cities like Madrid and Barcelona often offer higher pay compared to rural areas, thanks to factors like industry concentration and the cost of living.

Industry-Specific Salary Earnings

Salaries in Spain can vary a lot depending on the industry, based on how in-demand certain skills are and how much value is placed on each sector. Industries like finance, technology, and healthcare tend to offer salaries that are higher than the national average, while fields like hospitality and retail usually have lower wages.

Here’s an overview of average annual salaries by profession in Spain as of 2025:

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‍Note: Exchange rate used: €1 = $1.10 USD.

These figures are based on data from various sources, including the Spanish National Statistics Institute (INE), industry-specific salary reports, and job market analyses for 2025.

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Labor Market Overview in Spain

Spain's unemployment rate as of the first quarter of 2025 is 11.36%, which is a little higher than it was the previous quarter. The nation's labor market is still vibrant, with employment growing in all industries despite this uptick. With more than 75% of the workforce employed, the services sector remains dominant, followed by industry and agriculture.

Spain's labor force has grown to approximately 24.6 million individuals, with a significant portion of job creation attributed to immigration. This influx has rejuvenated the workforce and bolstered domestic demand.
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Benefits of Hiring Employees in Spain

Spain offers a great environment for international companies looking to expand their teams. With a skilled workforce, competitive labor costs, and a business-friendly climate, hiring in Spain comes with several benefits.

• Access to a Skilled Workforce: Spain has a well-educated labor force, especially in fields like technology, engineering, and finance. The country’s top universities and technical institutions produce graduates with the skills needed in today’s competitive market.
• Competitive Labor Costs: Spain's labor costs are lower than in many other Western European countries, allowing businesses to stay competitive without sacrificing quality.
• Comprehensive Employee Benefits: Spanish labor laws guarantee a variety of employee benefits, such as paid vacation, sick leave, maternity and paternity leave, and social security contributions. These benefits helps improve employee well-being and satisfaction.
• Robust Social Security System: Spain’s social security system provides healthcare, pensions, unemployment benefits, and disability coverage for employees. Employers contribute about 30% of an employee’s salary to fund these benefits, providing comprehensive protection.
• Favorable Work-Life Balance: Spanish labor laws support work-life balance, setting limits on working hours and requiring rest periods. This focus on well-being can boost productivity and job satisfaction.
• Supportive Legal Framework for Startups: Spain offers tax incentives and simplified administrative procedures to help startups grow, encouraging innovation and entrepreneurship.
• Strategic Geographic Location: Situated at the crossroads of Europe, Africa, and the Americas, Spain gives businesses access to diverse markets and offers excellent infrastructure for logistics and international trade.
• Cultural and Linguistic Advantages: As a Spanish-speaking country, Spain gives businesses access to a large network of Spanish-speaking professionals worldwide, which is especially useful for companies expanding into Latin America or other Spanish-speaking regions.

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Factors That Influence Salaries in Spain

Salaries in Spain are influenced by several economic and market factors. If you're looking to hire talent in the country, it’s important to understand these factors to make sure you're offering competitive pay packages.

1. Professional Experience

Professional experience continues to be the most important determinant of salary in Spain. Because of their experience and aptitude for handling challenging tasks, workers with more years in their field frequently command higher wages. There are notable pay disparities between entry-level and senior roles, and this trend is evident across a number of industries.

2. Education and Skill Level

In Spain, opportunities for higher-paying jobs may arise from specialized training and higher education. Higher pay brackets are indicative of the need for advanced degrees or certifications in professions like healthcare, law, engineering, and technology. On the other hand, industries such as retail and hospitality might place more value on real-world experience than on formal education, which would have an impact on pay levels.

3. Industry Sector

Salaries in Spain vary significantly across different industries. For instance, professionals in finance, insurance, and information technology typically earn above-average wages, while those in hospitality and food services often receive lower compensation. This disparity is influenced by factors such as demand for specialized skills, revenue generation, and industry profitability.

4. Geographic Location

The cost of living and economic activity in different regions of Spain impact salary levels. Cities like Madrid and Barcelona offer higher wages to offset the increased living expenses, whereas rural areas may have lower salaries but also reduced living costs. It's important to research these regional differences when setting compensation packages. 

5. Labor Market Dynamics

The state of the labor market, including factors like unemployment rates and demand for specific skills, influences salary trends. In sectors with high demand and low supply of qualified professionals, employers may offer higher wages to attract talent. Conversely, in oversaturated markets, wage growth may be slower.

6. Collective Bargaining Agreements

In Spain, many industries are governed by collective bargaining agreements that set minimum wage standards and other employment conditions. These agreements ensure a baseline level of compensation and can influence salary negotiations within specific sectors.

7. Government Policies and Minimum Wage Regulations

Government decisions regarding the minimum wage and labor laws directly impact salary structures. In 2025, the Spanish government increased the minimum wage to €1,184 per month, aiming to reduce income inequality and support lower-income workers. Such policy changes can lead to adjustments in overall wage levels across various sectors. 

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Hiring Trends & Future Salary Outlook in Spain

Spain's labor market in 2025 is dynamic, driven by population shifts, industry demands, and economic growth. Below are some key trends that will influence hiring and salary expectations:

1. Robust Economic Growth and Employment Expansion

• Spain’s GDP grew by 3.2% in 2024, making it the fastest-growing economy in Europe.
• The workforce is projected to exceed 22 million in 2025, driven by increased household consumption, tourism, and lower inflation. 

2. Wage Growth Outpacing Inflation

• Nominal wage growth is expected to surpass inflation rates in 2025, though real wage gains may be moderate. 
• Average salary raises are projected at 4%, with some sectors, like pharmaceuticals, seeing increases of up to 10%.

3. Demand for Skilled Talent in Emerging Sectors

• There's a growing need for skilled professionals in technology (cybersecurity analysts, software developers), healthcare (nurses, doctors), and renewable energy sectors.
• Employers are increasingly prioritizing skills and real-world experience over formal degrees, particularly in fields like AI and green energy.

4. Regional Disparities in Employment and Salary Levels

• Regions like Madrid and the Basque Country are seeing strong job growth, while areas like the Balearic Islands and Valencia face more employment challenges.
• Salaries vary widely across regions, influenced by factors like local industry presence, cost of living, and economic activity.

5. Structural Challenges and Policy Responses

• Youth unemployment remains high at 25.5%, with young women facing even higher unemployment rates.
• The government is considering reducing the standard workweek from 40 to 37.5 hours by the end of 2025, aiming to improve work-life balance.

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Simplify Your Team Growth in Spain

If you're looking to attract and retain the best talent, stay updated on the latest salary trends in Spain to provide fair pay. You'll need to take industry standards, location, experience, and cost of living into account when making decisions. Look for free resources such as Playroll's salary benchmarking tool and employee cost calculator to easily benchmark your offering across the globe.

If you're hiring in Spain, make sure your salaries are competitive, your benefits match industry standards, and you're up to date on local labor laws to ensure a smooth hiring process.

Need help simplifying hiring in Spain? Playroll offers top-tier EOR services to streamline global hiring –handling legal employment, compliance, payroll, and benefits – so you can focus on expanding your team. Book a chat with us today to learn how we can support your hiring needs in Spain in 2025.