Is this Spanish job offer fair? Benchmarking pay by profession

Terms used

• Brutos/año — Brutos/año means gross per year: your yearly pay before income tax and Social Security are taken off.
• IRPF — The IRPF is Spain's personal income tax, withheld from your pay each month.
• Pagas extra — The pagas extra are two additional salary payments, usually in summer and December, in contracts with 14 payments.
• Convenio — The convenio is the collective agreement for a sector or company that sets minimum pay and conditions.

Key rules

• Gross annual pay: Compare every offer as gross annual pay, not net monthly pay.
• 12 or 14 payments: The contract states whether the annual sum is paid in 12 or 14 instalments, which changes the monthly amount.
• Median: The median wage is lower than the average, so use it as your first benchmark.
• Region and sector: Region and sector can change pay by 30 to 40 percent or more, so compare like with like.

Start with the gross annual figure

Compare offers as gross annual pay, written "€X brutos/año". This is how Spanish job offers and contracts quote salary. A net monthly figure is only an informal estimate. It depends on income tax withholding (IRPF) and your personal situation.

Then check how many payments the year is split into. A contract says whether the annual sum is paid in 12 or 14 instalments. The two extra payments (pagas extra) usually fall in summer and December. The same annual sum gives a smaller monthly amount with 14 payments. Ask whether the extras are included in the figure you were given.

Also ask which collective agreement (convenio) applies. It sets the pay for the job, so it shows the minimum you should expect.

Where to find official pay data

The national statistics institute (INE) publishes the main figures:

• The annual wage structure survey (Encuesta de Estructura Salarial) breaks pay down by occupation, sector, region, sex and age. It is the best source by occupation.
• The quarterly labour cost survey covers sector and region.

The tax agency also publishes wage breakdowns by region and age, based on tax and Social Security records. The Ministry of Labour publishes collective-agreement data.

These figures usually come out about two years late. A salary in the latest tables will look low next to today's offers, so treat the tables as a floor and a guide, not an exact price.

The national picture

The average gross annual wage in the wage structure survey is in the high €20,000s, up to about €30,000. The median is clearly lower, because a few high earners pull the average up. Compare your offer with the median first. If you are below it in a normal full-time job, ask why.

Compare by occupation

Pay rises steeply with the type of job:

• Managers and senior professionals earn several times what elementary, hospitality, cleaning and farm workers earn.
• Scientific and technical professionals, and IT and health specialists, sit well above the national average.
• Administrative, skilled trade and service jobs sit near or below it.

Look up your exact occupation group in the survey tables. Salary guides on job sites give ranges by role, but they are only a rough guide. Use them after the official tables, not instead of them.

Adjust for region, city and sector

Where you work moves the number.

• Pay is highest in the Basque Country, Madrid, Navarra and Catalonia. It is lowest in Extremadura, the Canary Islands, Andalucía, Murcia and Galicia.
• The gap between the top and bottom regions is roughly 30 to 40 percent in average annual pay.
• Madrid and Barcelona pay more than other cities. Higher housing costs take back part of that.
• Finance and insurance, energy, IT and extractive industries pay most. Hospitality, agriculture, retail and domestic services pay least.

A quick test of an offer

1. Convert the offer to gross annual pay and note 12 or 14 payments.
2. Find your occupation group in the survey tables and note the median.
3. Adjust up or down for your region and sector.
4. Check the convenio minimum for the job.
5. If the offer is well below all of these, ask the employer to explain or negotiate.

The quick answers below cover gross versus net, payment rules, 14 payments and bonuses.

Quick answers on Spanish pay

Is a Spanish salary quoted gross or net?

Spanish salaries are normally quoted gross and per year, written as €X brutos/año. Net monthly figures are used informally, and they depend on your tax withholding and personal situation.

When must I be paid, and can I be paid in cash?

You must be paid on the agreed date, and the pay period cannot be longer than one month. Pay can be by cash, cheque or bank transfer, and you get a payslip. Cash is rare and a transfer gives you proof. Late pay earns 10% annual interest.

Do 14 payments mean I earn more than with 12 payments?

No, 14 payments pay the same annual gross total as 12 payments, only split differently. The law gives you at least two extra payments a year, one at Christmas. Your contract or agreement can instead spread them across the 12 monthly payments.

Is a bonus taxed at a higher rate than my base pay?

No, a bonus is not taxed on a separate scale, but an unexpected one can raise the withholding on the payslip when it is paid. Your employer includes expected bonuses when setting your withholding rate. Bonuses also count towards Social Security contributions. Income that took more than two years to earn can get a 30% reduction in your final return, up to €300,000.