Pay rises in Spain lag behind inflation


The latest figures from the Spanish ministry of labour show average pay increases gradually creeping up, reaching 1.4% in September. However, this is still less than the current rate of inflation, which was 1.8% in the same month. 


As agreements in Spain typically last three or sometimes four years, the 1.4% figure includes pay increases in agreements which were signed before 2017. However, even for the 692 agreements signed in 2017, pay increases, at 1.7% still lag slightly behind inflation.


With no national framework agreement providing recommendations to lower level negotiations — attempts to reach a deal were finally abandoned in the summer — the unions are simply calling for increases which at least are in line with inflation. 


They also want agreements to include a clause guaranteeing a subsequent increase if inflation is higher than forecast. These were very common in past, but the latest figures show that only 16% of current agreements have an inflation guarantee.