The full resumption of activity and a robust revival in employment after the pandemic are evident. In Alicante, declared earnings for workers are set to rise in 2022 at a pace not seen since the real estate surge over 16 years ago, according to reports filed with the Treasury.
The latest figures from the Tax Office, based on payroll withholding data from companies, show this trend clearly: the average income per employee reached 19,112 euros last year, up 8.3% from 17,649 euros the year before. This represents a notable advance with few parallels. To encounter a comparable increase, one would have to go back to 2007, the last year before the real estate crash, when Alicante workers also saw an 8% rise in earnings.
Those affected by ERTE earned 2,500 euros less than other workers
In any case, it should be clarified that this does not mean every worker experienced the same jump on their payslip. On average, the agreed increase stood at 3.55%. The overall improvement reflects the positive shift in the labor market, not every individual’s wage moved in lockstep with the average.
Since the figure is an annual average, there are many factors that shape the final result. For instance, someone who only worked during the summer would be counted the same as a person employed the full year, which can lower the final average. In 2022, a different pattern emerged.
Although the Tax Office study provides only generalized data and does not itemize specifics, it confirms that 2022 saw a labor reform that expanded permanent contracts and reduced temporary employment. Additionally, EPA data indicate that up to 96% of the increase in employment in the province was full-time. In short, more people worked longer hours and enjoyed better working conditions.
Another important consideration is the share of workers who did not earn at least the equivalent of the Minimum Interprofessional Wage during the year. This category includes part-time or seasonal roles that are legally prohibited if wages fall below the SMI. Last year, this group continued to shrink, continuing a trend from 2021. The minimum wage rose by 4% to 14,000 euros gross annually, yet a portion of the workforce still earned less.
national average
The pronounced recovery in 2022 allowed a slight narrowing of the gap between Alicante residents’ earnings and the national average. Nationally, average annual income reached 22,781 euros, about 3,669 euros higher than Alicante’s figure, placing Alicante toward the lower end of the provincial rankings. Specifically, it sits in tenth from the bottom, behind Cuenca, Extremadura, and most Andalusian border provinces such as Almería, Cádiz, Córdoba, Granada, Huelva, and Jaén.
How much do Alicante workers earn?
When earnings are viewed by sector, the banking and insurance group remains the best paid, with an average annual income of 33,782 euros. Behind them are workers in social services, including health and education, with an average of 28,687 euros. The extractive industries, electricity, and water supply sectors report around 25,253 euros.
On the other end of the spectrum, the lowest earnings lie with personal services and hospitality jobs, as well as domestic work and hairdressing, with averages around 10,780 euros. The agricultural sector reports about 10,957 euros.
More than 900 Alicante residents earned more than 140,000 euros annually. The favorable economic climate also attracted attention for the rise in high earners. The number of residents earning more than ten times the minimum wage, i.e., above 140,000 euros, increased from 844 in 2021 to 916 in the most recent year. The overall improvement also helped reduce the gender pay gap, from 3,114 euros to 2,735 euros. Still, the gap remains a concern.