Inflation threatens to 'eat up' the salary increase: three comparisons to know what is happening with purchasing power

The definitive figure for July 2026 is 3.6%. The gross annual salary grew by 3.1% in 2025 compared to the 2.9% of the CPI, while the agreements signed in 2026 show differences depending on their scope and the OECD warns that real wages remain below 2021.

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Large figures that occupy headlines and invite the Government to boast about its economic management. In parallel, other amounts, not so vast –but with a greater influence on 'the cost of living'– that shrink the citizen's pocket. From the comparison emanates an evident distortion: although Spain is going through a good moment in macroeconomic terms, that does not translate into an improvement in the quality of life (on the contrary). And one of the reasons must be sought in inflation, since the increase in wages collides head-on with the accumulated rise in the prices of goods and services.

The CPI stood at 3.6% in July, according to the definitive data provided by the National Institute of Statistics (INE). Four tenths above the 3.2% recorded in June. Inflation had started 2026 at 2.3%, rose to 3.4% in March, and then remained at 3.2% during April, May, and June. The 3.6% of July therefore represents the highest level since March.

In 2025, wages outpaced inflation, but barely

A first comparison allows us to put into context the evolution of wages during the past year. The gross annual salary per worker reached 28,410.78 euros in 2025, 3.1% more than in 2024, according to the Annual Labor Cost Survey by the INE.

The CPI closed 2025 at 2.9%, so the increase in the average gross annual salary was two tenths above the inflation recorded in December. Taking these two references, wage growth slightly outpaced the rise in prices at the end of the year.

The comparison has a limitation that should be taken into account: the 3.1% measures how much the average gross annual salary increased between 2024 and 2025, while the 2.9% reflects the price variation between December 2024 and December 2025. Therefore, the two figures allow us to observe the relationship between wages and inflation, but do not directly calculate how much the purchasing power of each worker increased or decreased.

The agreements of 2026 leave an unequal picture

The data from the Statistics of Collective Labor Agreements show another perspective. Among the agreements signed in 2026, the average agreed wage increase is 3.76% (above 3.6%). In total, there are 460 agreements affecting 1,136,238 workers, according to the data collected by the Ministry of Labor's statistics.

But that percentage changes depending on the scope of the agreement. The 321 company agreements signed in 2026, which affect 76,736 workers, contemplate an average increase of 2.97%. The three group agreements, with 1,193 affected workers, agree on an increase of 3.47%. In the 136 sector agreements, which affect 1,058,309 workers, the average increase reaches 3.82%.

The comparison with the 3.6% inflation of July thus leaves three different situations. The company agreements are 0.63 points below the CPI and the group agreements are also lower (-0.13). The sector agreements, on the other hand, exceed inflation by 0.22 points.

However, this is not an exact comparison. The CPI measures the evolution of prices between July 2025 and July 2026, while the statistics of agreements record the salary variations agreed upon in the agreements registered during 2026. Furthermore, a salary increase agreed upon in an agreement does not necessarily imply that all affected workers have already seen that increase applied to their payroll.

Real wages grew by 2%, but remain below 2021

The third figure analyzed by Demócrata allows for a direct measurement of what has happened to the purchasing power of wages. The OECD indicates in its report OECD Employment Outlook 2026 that real wages in Spain grew by 2% over the last year. As these are real wages, this figure already accounts for the effect of inflation: it is not a nominal wage increase from which the evolution of the CPI must be subtracted later.

The comparison made by the organization takes the first quarter of 2026 as a reference against the same period of 2025. Therefore, that 2% does not mean that real wages increased by 2% throughout 2025 nor can it be directly compared to the 2.9% with which inflation ended that year. What it does show is that, after accounting for the evolution of prices, wages regained part of their purchasing power during the last year analyzed.

Despite this improvement, the recovery remains incomplete: the OECD estimates that real wages in Spain were still 2% below their level in the first quarter of 2021. The organization thus places Spain among the OECD countries where the purchasing power of wages has declined the most since then.

The forecast for 2026 and 2027 is also not one of strong recovery

The OECD also does not expect a significant rebound in real wages in the next two years. Its forecast for Spain points to a stagnation of real wages during 2026 and 2027, in a scenario marked by new pressures on prices and by a labor productivity growth that has been weak over the last decade.

The organization also points out that the significant increases in the minimum wage have protected low-income workers from inflation, but it considers that this coexists with a broader stagnation of wages in much of the labor market. The evolution of productivity will be another of the determining factors for citizens to be able to recover purchasing power in a sustained manner.

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AI-GENERATED CONTENT

What are the necessary steps for the negotiation and registration of a collective agreement in Spain?

The available information does not detail the specific procedure for the negotiation, registration, and publication of a collective agreement in Spain, so it is not possible to rigorously describe each phase or its formal requirements from a legal perspective. The sources only precisely outline the general procedure that a law follows in Spain from its presentation to its approval and publication. Based on that material, it is only possible to explain how a complex normative procedure (with successive phases and intervening bodies) is structured in Spain, but without technically and in detail extrapolating to the field of collective agreements. Therefore, any detailed explanation of specific requirements for agreements (deadlines, registration bodies, exact documentation, etc.) would be an invention and cannot be reliably provided.

What is known: the general logic of normative procedures

The available sources describe the typical path of a law in Spain, which serves as a reference to understand how formal procedures are organized in the Spanish legal system, although it does not replace the specific regulation of collective agreements.

In general terms, several ordered phases are distinguished:

  • Presentation of the initiative: this may be a bill presented by the Government or a bill proposal presented by deputies, parliamentary groups, the Senate, autonomous assemblies, or by popular initiative.
  • Admission or consideration: in the case of bill proposals, the Plenary of the Congress decides whether to admit the initiative for processing; in the case of government bills, the Board of the Congress qualifies and admits it for processing.
  • Assignment to committee and opening of amendments: the Board of the Congress sends the text to the competent committee and opens a period for parliamentary groups to submit amendments.
  • Committee debate: the text and amendments are discussed, and the committee prepares a report.
  • Debate and voting in the Plenary of the Congress: the Plenary debates the report and the amendments that remain active and votes on a final text.
  • Referral to the Senate: the approved text is sent to the Senate, which may approve, amend, or veto it.
  • Response from the Congress: if there are amendments or a Senate veto, the Congress decides whether to accept those amendments or lift the veto with the established majorities.
  • Sanction, promulgation, and publication: the King sanctions and promulgates the law, which is published in the Official State Gazette (BOE) and comes into force on the date indicated by the law itself or, failing that, 20 days after its publication.

This scheme shows how in Spain normative procedures are structured in successive phases (initiative, processing, approval, publication), with formal controls at each step. This logic of a “drafting and negotiation phase,” followed by a “formal approval phase,” and finally an “official publication phase,” is common to many legal processes, although the specific rules change depending on the type of norm or instrument (law, regulation, collective agreement, etc.).

Limits of the available information on collective agreements

Specifically regarding your question —the necessary steps for the negotiation and registration of a collective agreement in Spain— the accessible sources do not provide specific data on:

  • How the negotiating table between representatives of workers and the company or sector is formally initiated.
  • What formal requirements govern the validity of the reached agreement (quorum, representative legitimacy, negotiation minutes, etc.).
  • Which administrative body is competent for the registration and deposit of the agreement in each scope (state, autonomous, sectoral, company), nor what documentation must be attached.
  • What deadlines apply for registration, administrative resolution, and possible official publication.
  • How exactly the publication phase is articulated (for example, in which official gazette and with what temporal effects of entry into force).

Since this specific information is not available in the sources, it is not possible to describe with legal precision the phases of negotiation, approval, registration, deposit, and publication of a collective agreement, nor to list its formal requirements without resorting to inventions or inaccuracies.

General guidance (without specific technical content)

In view of the above, only very general, non-technical guidance can be offered, based on the logic of formal procedures in Spain:

  • There is usually a negotiation phase between the legitimized parties (worker and employer representation), in which conditions are discussed and agreed upon.
  • After the agreement, there is usually a formalization phase, in which the agreed content is set out in a complete text and certified by those with representative capacity.
  • Subsequently, a phase of administrative control and registration is foreseen, in which a labor authority examines certain formal requirements and proceeds, if applicable, to register and deposit the agreement.
  • Finally, an official publication phase in a gazette is usually contemplated, from which the agreement deploys its general effects.

However, the concrete details of each of these phases regarding collective agreements (required documents, deadlines, administrative competences, challenge mechanisms, etc.) are not found in the consulted information. Therefore, to know the exact ordinary legal procedure it would be essential to directly consult the current labor regulations (such as the Workers' Statute) and the specific regulation on registration and publication of agreements, as well as, if applicable, the administrative practice of the competent labor authorities.

What specific regulations currently govern the negotiation and registration of collective agreements in Spain? What differences exist between a company collective agreement and a sectoral one regarding their formal processing and legal effects? What mechanisms of challenge or judicial control exist against a collective agreement already registered and published?

What competencies does the Ministry of Labor have in the statistics and control of collective agreements?

The Ministry of Labor and Social Economy has three main functions regarding collective agreements: it manages the registration, deposit, and publication of agreements of state or supra-autonomous scope; coordinates and exploits the official statistics of agreements based on the information collected by the registry; and exercises a limited administrative legality control, which consists of verifying formal requirements and, if applicable, communicating possible illegalities to the social jurisdiction. All this is mainly articulated through the electronic registry (REGCON) regulated by Royal Decree 713/2010 and its subsequent developments.

1. General framework: Workers' Statute

The legal basis is in article 90 of the Workers' Statute (Consolidated Text approved by Royal Legislative Decree 2/2015). Although the consulted extracts do not show the literal text of the article, Royal Decree 713/2010 itself indicates that it develops art. 90.2 ET, which imposes the registration, deposit, and publication of agreements, and also refers to art. 90.5 ET for communications to the social jurisdiction when the labor authority detects illegality or serious harm to third-party interests.

In summary, the Statute assigns the “labor authority” (at the state level, the Ministry of Labor) the obligation to register and publish duly negotiated agreements and the power to notify the courts of possible illegalities, but does not grant material homologation power over the content of the agreement.

2. Registration, deposit, and publication: REGCON and central database

The key technical instrument is the electronic registry of collective agreements and labor agreements (REGCON), regulated by Royal Decree 713/2010, whose current name, after Royal Decree 901/2020, is “on the registration and deposit of collective agreements, labor agreements, and equality plans.”

From the articles and fragments consulted of Royal Decree 713/2010, several direct competencies of the Ministry emerge:

  • Creation and management of the state registry: a registry of agreements and collective labor agreements of state or supra-autonomous scope is created, “attached to the Directorate General of Labor of the Ministry of Labor and Immigration as the competent labor authority,” responsible for the registration of all registrable acts in that scope.
  • Definition of registrable acts: art. 2 includes agreements from Title III ET, interprofessional agreements, awards with the effect of agreements, equality plans, mediation agreements, extensions of agreements, etc.
  • Creation and management of the central database: chapter III creates a “central database of agreements and collective labor agreements and equality plans,” whose management corresponds to the Ministry. All labor authorities (including autonomous ones) must send electronic entries and links to official gazettes for integration into this database.
  • Publication in the BOE: once the state agreement is registered, the Directorate General of Labor issues a resolution ordering its registration, deposit, and publication in the Official State Gazette (recent examples can be seen in resolutions such as the 2025-2030 state gardening agreement, published by the Resolution of January 20, 2026, or multiple agreements registered in 2023-2025 like the VII general construction agreement, [link]).

3. Statistical functions on collective agreements

Royal Decree 713/2010 explicitly incorporates a statistical function. The preamble itself emphasizes that the regulation responds, among other reasons, to “statistical obligations with various international organizations.” Article 6, developed in the consulted extracts, foresees that along with the registration request, statistical models collected in annex 2 are completed, “for the purpose of preparing the statistics of collective agreements.”

Annexes 2.I to 2.V contain the “statistical sheets” of company agreements, sector agreements, wage revisions, and equality plans. These models have been updated by Order TES/1573/2025, whose preamble specifies that:

  • The purpose of the sheets is “to collect the necessary data for the preparation of collective agreement statistics.”
  • The modifications have been worked on in the “Tripartite Technical Group for monitoring and improving information related to collective bargaining, the registration of collective agreements and labor agreements, and the operation of the supporting computer application (REGCON),” composed of the Ministry and the most representative trade union and business organizations.
  • The order is issued under art. 149.1.7 of the CE (state competence in labor legislation) and the authorization of the final provision three of Royal Decree 713/2010 for the Minister to modify the official models of annex 2.

That is, the Ministry not only collects data in REGCON but also designs the statistical questionnaires, technically coordinates the information, and prepares the official statistics of collective agreements, within the framework of the National Statistical Plan approved by Royal Decree 1225/2024.

4. Legality control and administrative verification

The Ministry's legality control is formal and advisory, not material approval of content. From Royal Decree 713/2010 itself, three levels are extracted:

  • Control of formal requirements: the registry may require corrections if the application “does not meet the requirements demanded by current regulations,” with a 10-day deadline; if not corrected, withdrawal is declared.
  • Verification of legality and third-party interest: “once it is verified that the agreement or collective agreement does not violate current law nor seriously harms third-party interests, the competent labor authority shall issue a resolution ordering its registration, deposit, and publication in the corresponding official gazette.”
  • Communication to the social jurisdiction: when possible illegality or serious harm is detected, the labor authority makes the communication provided in art. 90.5 ET to the competent judicial body. Royal Decree 713/2010 foresees the registration in REGCON of these communications and the rulings issued, as well as that subsequent action (registration and publication) complies with what the ruling establishes.

In short, the Ministry of Labor and Social Economy acts as the state labor authority that organizes the electronic registration system of agreements (REGCON), exploits the statistics derived from collective bargaining, and exercises a limited legality control through formal verification of agreements and notification to courts of possible illegalities, without there being a “homologation” or discretionary approval of the negotiated content.

How exactly does the role of the Ministry of Labor differ from that of the autonomous communities in the registration of collective agreements? What specific types of data are collected in the new statistical sheets of annex 2 of Royal Decree 713/2010 following Order TES/1573/2025? How does the challenge of a collective agreement work in practice when the labor authority considers it violates the law?

What legal requirements must be met for a wage increase agreed in a collective agreement to be effectively applied in workers' payrolls?

For a wage increase agreed in a collective agreement to be effectively applied in payroll in Spain, the agreement must be validly negotiated and signed, registered and published in the corresponding official gazette, and have come into force under the terms set by the agreement itself. From that moment, its salary tables have binding force for all companies and workers included in its scope, without the need for individual agreements, always respecting the minimum interprofessional salary and the rules of compensation and absorption. The agreement may provide for retroactive effects, and the joint commission plays a key role in clarifying doubts about dates, amounts, and application methods. Only through a procedure of “opt-out” or non-application (art. 82.3 ET) could the company cease to apply the increase, with very strict requirements.

1. Binding force of the agreement and scope of application

The Constitution recognizes the right to collective bargaining and the binding force of agreements in its article 37, according to the Spanish Constitution. The Workers' Statute (ET), approved by Royal Legislative Decree 2/2015, develops this mandate.

Article 82 ET establishes that collective agreements, as a result of negotiation between representatives of workers and employers, bind all employers and workers included in their scope and during their entire validity. Therefore, if the wage increase is included in the applicable agreement (sectoral or company), it is directly applicable to all affected persons, without the need to sign individual annexes to the contract.

2. Formal requirements: negotiation, registration, and publication

Title III of the ET (arts. 82 to 92) requires that the agreement has been:

  • Negotiated by legitimized subjects (arts. 87 and 88 ET), with a validly constituted negotiating commission.
  • Signed by the parties with the majority requirements provided (art. 89.3 ET).
  • Formalized in writing, under penalty of nullity (art. 90.1 ET).
  • Presented to the labor authority for registration and deposit within 15 days from signing (art. 90.2 ET), this procedure being developed by Royal Decree 713/2010, later modified by Royal Decree 901/2020 and Order TES/1573/2025.
  • Published in the BOE or autonomous/provincial gazette within a maximum of 20 days from its presentation (art. 90.3 ET).

In practice, increases are incorporated through registration and publication resolutions of agreements or wage revisions, as illustrated by various resolutions of the Directorate General of Labor (for example, for consulting and ICT in 2024, insurance, or other tables: consulting, insurance 2022–2023, insurance 2022, Grupo Acrismatic, ESC Servicios Generales, cement sector, adaptation to SMI 2024, Mahou, EFE Agency, Law 1/2020, FOGASA 2023, Red Cross – correction, Red Cross – statutes).

3. Entry into force and possible retroactivity

Article 90.4 ET indicates that the agreement comes into force on the date agreed by the parties; if nothing is said, from publication. It is very common for tables to have effects from a date prior to the BOE (for example, “with effects from January 1 of year X”). In that case, the company must apply the increase from that date, paying arrears in the payroll (or through a specific settlement), even if the publication is later.

The duration, extension, and ultra-activity of agreements are regulated in article 86 ET, which allows that, once the agreement is denounced, it continues to apply while another is negotiated. If the new agreement or wage revision sets increases for a period already worked, retroactivity will be mandatory under the agreed terms.

4. Limits: SMI, salary structure, and compensation/absorption

The ET, in its article 26, defines salary and salary structure, and in paragraph 5 provides that “compensation and absorption will operate when the salaries actually paid, in their entirety and annual computation, are more favorable” than those set in the norm or agreement. That is, if a worker already receives, in annual computation, more than the new table sets, the company could absorb part of the increase, unless the agreement expressly prohibits such compensation.

Article 27 ET regulates the minimum interprofessional salary: the Government sets it annually, and the revision “will not affect the structure or amount of professional salaries when these, in their entirety and annual computation, are higher than it.” In any case, no full-time salary can be below the SMI; if the tables place it below, the company must at least raise it to that threshold.

5. Joint commission, opt-out, and individual agreements

Article 85.3 ET requires that every agreement designate a joint commission, competent to interpret the agreement and resolve discrepancies. In case of doubts about when the increase applies, how arrears are calculated, or if compensation/absorption is possible, the parties may turn to this commission; its agreements, or the arbitration awards provided in article 91 ET, have the same effect as the agreement itself.

The company can only cease to apply the increase through a wage opt-out under article 82.3 ET, when economic, technical, organizational, or productive causes concur and after negotiation with the workers' representation. Without that procedure and without agreement (or arbitral or National Advisory Commission decision), the company is obliged to reflect the increase in the payroll.

6. Other related normative references

The general framework is completed with reforms and related norms that have partially modified the ET or the labor context (Royal Decree-Law 4/2017, Royal Decree-Law 8/2017, Royal Decree-Law 28/2018, Royal Decree-Law 32/2021, Royal Decree-Law 5/2013, Law 1/2014, as well as other sectoral or non-labor related provisions such as Royal Decree 635/2022, Royal Decree 243/2022, Royal Decree 157/2022, Order ECE/1052/2018, Order PRE/2900/2003, Order 368/2000), which do not alter, however, the basic requirements exposed for the application of wage increases from agreements.

How is compensation and absorption calculated in practice when a salary already exceeds the new agreement tables? In what specific cases can a company resort to the wage opt-out of article 82.3 of the Workers' Statute and what steps must it follow? What are the maximum deadlines a company has to pay wage arrears when the agreement sets an increase with retroactive effects?

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