Salary increases for workers in 2025 It is expected to exceed the revaluation of public pensions Looking forward to next year. While the average salaries of Spanish employees are growing by about 3% year-on-year, retirees will receive a 2.7% increase in their benefits from January 2026.
Some numbers indicate this Payroll will gain purchasing power again – albeit modestly – for the second year in a row. All this is in the context of remarkable economic growth and good labor market performance, where membership in Social Security is at its highest levels and unemployment rates continue to decline.
the Salary increases agreed to in collective agreements for 2025 average 3.5%.Statistics published by the Ministry of Labor also appear. In fact, if we take into account only the agreements signed in 2025, the number rises to 4.15%.
In the same vein, data from the quarterly labor cost survey conducted by the National Institute of Statistics show that in the second quarter of 2025 The average salary increased by 3% year over year. However, statistics show a slowdown in salary improvement, which in the second quarter of 2024 grew at a rate of 4% compared to the previous year.
The moderation in salary increases is also evident in the salaries paid by the country’s major companies. Sales, employment and salary statistics at major companies show that the average overall performance (a concept similar to average total salary) of their workers rose 3.8% compared to last year. However, the increases have declined from 5% in 2023 and 4.8% in 2024.
7000 million revaluation
For their part, pensions will grow by 2.7% next year, after having grown by 2.8% in 2025, 3.8% in 2024, and 8.5% in 2023, when most of the incomes occurred, losing their purchasing power due to the brutal inflation that was recorded that year.
However, this must be taken into account Minimum pensions and non-contributory (welfare) pensions will rise again to levels above consumer prices.as reflected in the recent pension reform. The Minister in charge of Social Security, Elma Saez, confirmed, on Sunday, in an interview with The newspaper These pensions will be revalued by at least 5%.
The cost of revaluing public pensions using the Consumer Price Index, as set by law with the Escrivá reform, would amount to approx. 7.036 million euros next year. It is a figure practically linked to the 2025 revaluation, which is calculated at 2.8% inflation. However, total spending on pensions will rise by about €12 billion due to the increase in the number of retirees, mainly due to retirement.
The massive aging of the Spanish population and the revaluation of pensions guaranteed with the CPI It has reopened the debate about the sustainability of the system. The government has insisted on several occasions that the system is solid and secure, but at the same time, the deficit between its maintenance costs and income from social contributions is growing.
Organizations such as IREV have been pointing out for some time that Escrivá’s reform has not improved the sustainability of the system and have warned of the risks posed by the current level of spending. Recently, the European Commission – which supported the legislative change approved by Escrivá – has hardened its position on the issue and encouraged member states to encourage private saving as a complement to retirement.
In addition, the OECD advised Spain to link pensions to the population’s life expectancy. The change would likely mean a reduction in the initial benefit retirees receive.