Annual gross salary fell 2.6% in 2020, to 22,837.59 euros

The annual gross salary reached 22,837.59 euros in 2020, which represents a decrease of 2.6% compared to a year before and 73.3% of the total cost, according to the results of the Annual Labor Cost Survey (EACL ) published this Wednesday by the National Institute of Statistics (INE).

The wage gap narrowed in 2019 more than in the last decade after the SMI rise to 900 euros per month

The wage gap narrowed in 2019 more than in the last decade after the SMI rise to 900 euros per month

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The INE has highlighted that this decrease occurs after three years of growth and has explained that in 2020 workers paid with salaries and others (in ERTE) with SEPE benefits coexisted, so that the salary mass received was not related to the number of employees, since although only a part of them received salary income, all were registered in the workforce. The average salary is “distorted” and its comparison with 2019 is not “appropriate”, according to the INE.

Regarding non-salary costs, mandatory Social Security contributions were the most important item (7,335.87 euros per worker, 23.6% of labor cost). Wages and salaries plus Social Security contributions together therefore constituted 96.9% of the gross cost.

In addition to salaries and contributions, 561.45 euros per year were allocated to social benefits per worker (voluntary contributions to insurance and pension plans, complementary benefits to Social Security and social expenses), 206.27 to other expenses derived from the work (severance pay for termination of contract, small tools and work clothes, transportation to the workplace or selection of personnel), 153.45 euros corresponded to severance pay and 55.57 to professional training.

Likewise, the labor cost per worker in gross terms was 31,150.20 euros in 2020, which represents a decrease of 2.1% compared to the previous year. If the subsidies and deductions received from the public administrations are subtracted, a net cost of 30,965.76 euros is obtained, with an annual decrease of 2.1%.

Highest cost in the industry

According to the survey, the industry had the highest total net cost per worker in 2020, with 36,771.48 euros, although the cost fell by 2.8% compared to the previous year, with decreases of 3.7% in the cost of wages and 0.2% in non-salary cost.

In the construction sector, the net cost decreased by 0.9%, due to the decrease in both the non-salary cost (-1.2%) and the salary costs (-0.8%).

The services sector, on the other hand, presented the lowest labor costs in 2020, and registered a decrease in the net cost of 2%, with drops of 2.5% in the wage cost and 0.7% in the non-wage cost.

The highest labor costs were in the Community of Madrid (37,124.53 euros), the Basque Country (36,867.25) and Comunidad Foral de Navarra (34,508.28), while the lowest were observed in the Canary Islands (24,062.13 euros), Extremadura (25,051.16) and the Balearic Islands (27,003.07 euros).

On the other hand, most of the centers, 94.7%, which corresponded to 86% of the workers, were regulated by collective agreements in 2020, the area with the highest proportion being the lower than the state one. Of the total number of workers with an agreement, 3.3% saw their working conditions modified with respect to what was established in the reference collective agreement.


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