A report published by CCOO Madrid has highlighted that one in four workers in the Community of Madrid earns less than the labour poverty threshold. This alarming statistic indicates that approximately 860,000 individuals in the region are affected.
The report, titled Salarios 2026, provides a detailed analysis of wages in Madrid compared to the rest of Spain. It notes that, for the first time since 2009, average and median salaries in the region surpassed previous levels, largely due to increases in the minimum wage, a reduction in temporary contracts, and enhanced collective bargaining efforts. However, these gains are now at risk due to soaring inflation and rising housing costs.
Disparities in earnings
Despite being the region with the highest GDP per capita in Spain, Madrid does not rank similarly in terms of average or median salaries. In 2024, the median salary in the Community of Madrid was €28,038 per year, significantly lower than in the Basque Country (€31,912) and Navarra (€29,385), both of which have a lower GDP per capita.
The report reveals stark income inequality within the Madrid labour market. The top 10% of earners made at least €63,685 annually, the highest figure across all autonomous communities, while a significant number of workers earned far less.
Impact of inflation and housing costs
The report also underscores the detrimental effects of rising inflation and exorbitant housing prices on salaries. The Consumer Price Index (CPI) has affected different income levels in varying ways. For some, leisure activities have become more expensive, while others face rising costs for basic necessities like food and housing.
Between 2008 and 2024, real average salaries increased by just 3.7%, in stark contrast to a 21.5% rise in rental prices per square metre. Although data for 2025 is not yet available, rental prices continued to climb, reaching €20.1 per square metre monthly.
Call for action
The Salarios 2026 report stresses the urgent need for employers to sign the VI Agreement for Employment and Collective Bargaining (AENC), which is essential for protecting workers' rights. This agreement proposes a general annual salary increase of 4% from 2026 to 2028, along with additional raises of 1% to 3%. It also includes a salary review clause to address inflation spikes and measures to combat gender inequality.
Furthermore, specific actions are required to control price increases, particularly in housing, as recent forecasts from the Bank of Spain predict inflation rates of 3.9% for the end of 2026 and 3.7% for 2027. Currently, employers are resistant to signing the agreement.
