OECD warns of loss of wage purchasing power in Spain: 2.5% since 2019

The context of slowing inflation and strong labour markets is allowing real wages to rise in most countries of the Organisation for Economic Co-operation and Development (OECD), which warns that Spain is among those members where wages “have fallen the most since the start of the pandemic”. “Despite positive trends in the labour market, Spain is among the OECD countries where real wages have fallen the most since the start…

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Collective Bargaining Wages Rise By 2.2% Until February, When The CPI Rose To 7.6%

According to data from the Ministry of Labour, wages agreed in collective agreements rose by an average of 2.26% up to February, two tenths more than in January and almost eight tenths above the average for 2021 (1.47%). However, this is far off the CPI, whose final figure for the second month of the year was 7.6%, the highest rate in almost 36 years. Most of the agreements registered up…

pedro sanchez reflexiona

The Great Scam Of The SMI Increase

In 2021 the prorated minimum wage in Spain rose to 1,126 euros. This is 24% more than the European average, and much higher than Portugal, the Czech Republic or Lithuania, to name but a few of the countries that have surpassed us in terms of GDP per capita in recent years, explains Daniel Rodríguez in Expansión. The Spanish government – which has agreed with the trade unions to raise the…

ERTES extension

The SMI, An Economic Policy Tool

Fernando González Urbaneja | Wages are set by the market, by hook or by crook. But behind this axiom there are exceptions or nuances. Wages are set by agreement, often asymmetrical, between the payer and the payee. Either through a verbal or individual contractual agreement or through a collective bargaining agreement of any range. In this dynamic, the State intervenes, of course, with mandatory rules. The most typical intervention is…

Time to talk about salaries

Now It’s Time To Talk About Salaries

The recession has produced one clear victim and it’s called salaries. Starting with those lost by the jobless and by those who have used up all their unemployment benefit. But those workers on lower salaries, have also suffered, seeing their purchasing power diminished.