The report “Evolución Salarial 2007-2023” reveals that inflation continues to undermine the purchasing power of salaries

24 January 2024
Human resources

The presentation of the seventeenth edition of the report "Evolución Salarial 2007-2023", prepared by ICSA Grupo and EADA Business School, has revealed fluctuations in the salaries of Spanish employees, with an increase of 8.8% for employees, a decrease of 3.8% % for middle managers and an increase of 3.29% for managers in the last year.

However, despite these changes, the report highlights a constant trend: inflation continues to erode the purchasing power of wages throughout historical evolution.

The report “Evolución Salarial 2007-2023” reveals that inflation continues to undermine the purchasing power of salaries

The report, based on salary data of more than 80,000 employees in Spain, collected through direct surveys and technological platforms, shows that the transformation of companies is affecting the organizational structure. David Suárez, partner and director of the ICSA studies area, pointed out that "we are witnessing a progressive transformation of organizations that are flattening their structures, involving fewer middle managers and more technical positions." For his part, Jordi Assens, professor at EADA Business School, highlighted that “the only sustainable way to improve compensation is to link it to productivity, promoting innovation and training.” "Professionals must acquire new skills (upskilling) and adapt to different jobs (reskilling)."

The report also highlights that Artificial Intelligence is rethinking roles and responsibilities, suggesting the need to adopt more creative and sustainable compensation models, rather than relying exclusively on linear increases.

The industry leads remunerations in Spain, surpassing the banking sector

One of the highlights of the report is the change in the salary hierarchy between sectors. The industry has surpassed the financial sector, leading the salaries of employees in the country. In contrast, commerce and tourism continue to lag in terms of remuneration.

Madrid maintains leadership in salaries

The report ranks the Autonomous Communities according to salaries, with Madrid leading in all categories, closely followed by Catalonia.
The seventeenth edition of the report "Evolución Salarial 2007-2023" provides a detailed view of salary trends in Spain, highlighting the need to adapt to organizational transformation and the importance of linking compensation to performance and the acquisition of new skills.