Over the last 30 years, real wages in Spain have grown by only 2.76%, while in other developed countries, they’ve increased by more than 30% on average, according to OECD data. What is the OECD?
To put it in context, the Organisation for Economic Co-operation and Development (OECD) is an international institution made up of 38 countries, most of them democratic nations with developed market economies. Its main goal is to promote policies that improve the economic and social well-being of people around the world.

This wage gap not only affects workers' wallets, but also their ability to save, invest, and achieve financial stability.

Spain, lagging far behind Europe in wage growth

While neighboring countries have seen increases in real purchasing power, Spain continues to fall behind:

• Spain: +2.76% (1994–2024)
• Germany: +24.1%
• France: +28.4%
• Portugal: +21.2%
• Greece: +22.5%
• OECD average: +30.8%
• Italy: +0.5%
• Japan: −0.9%
• Mexico: −7.2%

The average salary in Spain is around €33,000 per year, but in real terms, it has only increased by about €887 in three decades—while the cost of living keeps rising.

Why wage growth in Spain has stalled

This weak performance is mainly due to:

• Stagnant productivity since the 1990s
• Deindustrialization: industry has lost ground to low-value-added sectors
• Structural inflation that’s higher than the eurozone average
• Nominal wage increases that don’t keep up with rising living costs

Minimum wage, pandemic, and loss of purchasing power

Although the Minimum Interprofessional Wage (SMI) in Spain has risen by more than 50% since 2018, the real increase has been limited:

• Real SMI growth: +3.1%
• OECD average for low-income workers: +7.9%
• Real wages after the pandemic: −4.2% compared to 2021

Countries like France and Portugal have already recovered their pre-pandemic wage levels. Spain has not.

And the future... doesn't look promising either

According to the OECD, Spain will be the developed country to lose the largest percentage of working-age population by 2060 (−30%). Combined with stagnant productivity, this could worsen the current situation.

What can you do about it?

If your salary isn't increasing, the last thing you want is for your savings to lose value.

With Rand, you can:

• Automatically save without even noticing, thanks to the Earn Account
• Access real opportunities to grow your savings by up to 6.5% APY, with compound interest
• Grow your money without hassle or hidden fees

💰 Your salary might not grow, but your savings can.
🔐 Regulated, secure, and 100% free.

👉 Download Rand for free and start making the most of your money.

‍