According to the Quarterly Labor Cost Survey (QLCS) figures published by the INE, total labor costs increased by 5.5% in 2023 compared to the previous year, reaching 2993.5 euros per month per worker (annual average). The wage component increased by 4.8%, to 2216.6 euros, while the non-wage cost, mostly consisting of social contributions, accelerated to 7.5% —the highest growth in the historical series starting in 2000—, representing 26% of the total labor cost.
The growth of wage costs exceeded the negotiated level in 2023, as has been the case since 2021, in contrast to the trend observed in previous years
Nominal wage growth in 2023 exceeded inflation, which stood at 3.5%, allowing workers to regain some of the purchasing power lost in previous years. Since 2019, nominal wages according to the QLCS have increased by 13.4%, while the CPI has risen by 15.3%, resulting in a 1.7% decline in real wages. The decline in purchasing power of wages has been occurring since 2017, resulting in a 3% decrease in real wages since then
The highest annual average wage growth in 2023 occurred in the trade, hospitality, and information and communication sectors, with increases of around 6%, while the smallest annual increase occurred in the energy supply sector. Compared to 2019, the sectors that recorded the highest nominal wage increases were real estate activities and public administration, while the lowest growth was seen in extractive industries, transportation, financial activities, and hospitality
With data up to the third quarter of 2023 from the Harmonized Index of Labor Costs published by Eurostat, Spain is one of the countries where nominal wage growth has been lowest since 2019. The eurozone average was 13.5% compared to 12.5% in Spain. However, in real terms, the decline in average wages in the eurozone was slightly greater than in Spain. The largest declines, among euro area countries, were recorded in Italy and Germany, while the largest increases were in Lithuania and Greece. In the European Union as a whole, the most significant real wage growth occurred in Bulgaria and Romania