Wage dynamics and the cost of living have become a central concern as real price pressures widen gaps in earnings. In large firms, workers often feel a different pinch than those employed by smaller businesses. The contrast is clear when comparing compensation across company sizes and industries, a point underscored by a salary report released this Wednesday by a leading media and research consortium involving ICSA and ESADE Business School. The analysis indicates that the average gross monthly wage for an employee stands at €2,022, calculated on 12 payments. In practical terms, this figure represents a comparison with each worker’s own prior earnings, illustrating how purchasing power has shifted since earlier periods. Inflation has eroded value, and in this context a €100 monthly drop in real purchasing power is not uncommon for some workers when traced back to prior crises such as the 2008 downturn.
The central finding is that employees at large companies have preserved a portion of their purchasing power, even as prices climb. In fact, average salaries at big firms rose by about 6% last year, aligning with current levels of the consumer price index. By contrast, remuneration in small and medium enterprises grew more slowly, with SMEs reporting roughly 3% gains for mid-sized outfits and around 3.5% for small businesses. This divergence highlights a broader pattern: larger employers have been able to sustain more robust wage growth, while smaller firms face tighter margins and slower salary progression.
Study authors describe a “strong resistance to rising wages” in some quarters. They attribute part of this to benefits that were trimmed or paused during the first year of the pandemic and part to what they characterize as a cultural or structural attitude toward margins that influence pay scales. In effect, the observed restraint in wage acceleration is tied to a mix of earned benefits and the persistent reality of competitive margins in many sectors.
From a broader economic lens, this translates into a fragile cycle for many workers. The purchasing power gained during a period of production and economic expansion often erodes in the months before a crisis hits, leaving employees with a smaller balance when striving to meet rising costs. Looking back at purchasing power for a typical Spanish employee, stretching from 2007, before the housing and financial shocks, to today amid a new wave of price volatility, the overall picture is not favorable.
On average, the poorest earners saw a drop in monthly purchasing power of roughly €100 when compared with the levels from the last three major crises — the financial collapse, the Covid-19 pandemic, and the ongoing inflation surge. Across the board, global price levels rose by about 30.1% over these 16 years, while salary growth varied by tier: middle management salaries rose around 24.5%, and executive pay climbed approximately 28.7%. In essence, the pain of inflation was shared, but not equally, with lower-paid workers bearing the heaviest burden. The trend line suggests that higher wage bands experienced relatively less pressure, reinforcing the idea that income resilience improves as one ascends the corporate ladder.
At a recent news conference, the study’s authors stressed a sobering conclusion: real wages did not merely keep pace with inflation in many cases; in some segments, they lagged behind. The implication is clear for policymakers and business leaders alike: ensuring that wages grow in tandem with inflation, if not outpace it, remains essential to preserving consumer demand and social stability. In the authors’ view, Spain should aim not only to keep salaries aligned with inflation but to pursue deliberate increases that reflect ongoing price pressures and productivity gains.