Mallorca Economy: Salaries

The average monthly salary in the Balearic Islands in 2020 was 1,844 euros gross, or 193 euros less than the national average of 2,038 euros.

The average monthly salary in the Balearic Islands in 2020 was also lower than the gross salary of 1,940 euros in 2019 and 1,862 in 2018, but higher than the 1,797 euros in 2017.

The average monthly salary in the Balearic Islands has increased from 1,747 euros gross in 2015 to 1,822 in 2020.

The national average monthly salary was 2,038.6 gross euros in 2020, an increase of 2.8% compared to 2019, with a gap of 19% between men and women, according to an employment survey published by INE.

The average salary for women in 2020 was 1,852 euros per month, while men received 2,210.3 euros, or 358 euros more per month. The main reasons for this inequality are that women work part time, take on temporary contracts and are in industries that pay less than men. Men had a higher concentration in high wages than women; 33.1% earned 2,295.2 euros or more in 2020, compared to 26.6% of women.

In the case of low wages, 38.8% of women had a salary of lless than 1,336.6 euros, compared to 21.8% of men.

The median wage, which divides the number of workers into two equal parts, those with higher wages and those with lower wages, was 1,706.4 euros in 2020, that’s an increase of 1.3%.

By age, the survey showed that young workers are concentrated in the lowest salary bracket

61% of employees under 25 received a monthly salary of less than 1,336.6 euros in 2020, while 5% were paid over 2,295.2 euros. Among employees aged 55 and over, 24.6% earned less than 1,336.6 euros and 40% were paid more than 2,295.2 euros.

Those with the highest proportion of high wages were financial and insurance activities; while on the opposite side, the branch with the lowest pay was hospitality.

By Autonomous Communities, those with the highest concentration of high wages were Madrid where 40.4% of employees received at least 2,295.2 euros per month; 40/4% and 38.4% in the Basque country and 38.4% in Foral Community of Navarre, compared to 20.5% in the the Canary Islands; 22.2% in the Balearics and 2.3% in the Extremadura.

To structure the survey, INE set up ten groups with the first decile corresponding to the first group of workers, or the 10% with the lowest wages; the second to the next 10% and so on up to the 10th decile, corresponding to the 10% of workers with the highest incomes.

In 2020, the largest group, composed of 40% employees or 6.4 million, was that of the middle deciles with a gross monthly salary of 1,336.6 to 2,295.2 euros.

A second group consisted of 30% of employees who are in the high pay bracket, with some 4.8 million employees and a gross monthly salary of at least 2,295.2 euros.

The remaining 30% of employees were in the low-wage zone with around 4.8 million people earning less than 1,336.6 euros gross per month in 2020.

This monthly salary is calculated by dividing the total salary for the year by twelve, the Total salary for the year, which includes pro-rated payments that do not have a monthly frequency, such as extraordinary payments.

INE also pointed out that in its estimate, ERTE revenues have been taken into account in cases where the employee has been in this situation.