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WORKING IN SPAIN

What is the current state of the labour market in Spain?

Recent reforms to the Spanish job market have massively increased the number of permanent contracts and boosted certain professions, here's everything you need to know.

What is the current state of the labour market in Spain?
When searching for teleoperator jobs on the InfoJobs portal there is an abundance of vacancies for permanent, full-time contracts, but only around half of those pay above Spain's minimum wage. Photo: Pixabay.

A recent study looking at the Spanish labour market in the post-pandemic period has shown that while the number of permanent contracts has risen and that certain industries have more vacancies than ever, this is not always translating into higher salaries for some Spaniards. 

The study by InfoJobs, a jobs portal, has shown that the number of contratos indefinidos (permanent contracts) have increased substantially. According to their data, 38 percent of job vacancies published in 2022 offered permanent contracts, an increase of 493,612 jobs which represents 92 percent more than the previous year.

READ ALSO: How a spike in permanent contracts is improving job security in Spain

The Spanish labour market has long been based on unstable working arrangements. This was something the government tried to rectify with reform in 2022. Before the government’s labour reform came into force, fixed-term contracts represented the vast majority of those signed month on month in Spain, many of which were lined up one after another and some contratos temporales could last just hours.

In fact, in 2021 Spain had the highest number of temporary contracts in Europe, and in 2021 the percentage of jobs offering permanent contracts was 24 percent, so 2022 represented an increase of fourteen percentage points in terms of permanent contracts as a proportion of the job market. 

READ ALSO: Spain’s labour market buoyed by sharp drop in temporary contracts

By the end of 2022 20.5 million people were employed in Spain, close to the all-time high of 20.75 million recorded at the end of 2007.

According to the study, the average salary offered by Spanish companies is now €24,395 per year, just 1.6 percent more than in 2019, the year before the pandemic, but inflation has pushed prices up by double-digit figures across the board, meaning that for many this will actually feel like a pay cut.

Vacancies and salaries

The report studied over 200 professional industries and concluded that the position with the most job openings in Spain was teleoperator, a role with 347,122 vacancies throughout 2022 and offering an average salary of €17,409 per year.

Despite the fact that call centre work usually requires neither training nor experience, InfoJobs reports that there are just 13 applications per vacancy, one of the lowest competition ratios.

The secretary of the UGT in Galicia, Suso Mosquera, who is herself a teleoperator by profession, says it is a career “that people enter on a provisional basis, always hoping to find something better.”

When searching for teleoperator jobs on the InfoJobs portal there is an abundance of vacancies for permanent, full-time contracts, but only around half of those pay above Spain’s minimum wage (known as salario mínimo interprofesional or SMI) of €15,120, typifying the study’s conclusion that the creation of more permanent contracts is not necessarily translating into higher salaries or more stable working conditions for all.

“The average salary has not risen and the difficulties in filling some positions have become more acute,” Monica Perez, Director of Studies at Infojobs, said of the job market. 

READ ALSO: Spain’s govt salvages key labour reform thanks to voting error

Emerging jobs 

The study also identified emerging jobs in Spain, particularly in the digital and green energy sectors.

Digital security jobs, cloud security and analysis, data and artificial intelligence positions are all growing, but also digital jobs in the marketing, law, healthcare and engineering sectors.

Though the speciality of these positions often means there aren’t that many vacancies, digital and tech positions are clearly on the rise: if we take job offers for cybersecurity engineer positions, for example, there are only 249 on the InfoJobs portal, but that figure has quadrupled in just one year.

The rapid expansion of green energy jobs also stands out. Solar panel installers, for example, are in demand, with vacancies increasing almost eightfold. The same applies to digital economy consultants, which has increased tenfold.

Best paid

According to InfoJobs, the job with the best average salary in Spain in 2022 was IT business analyst, which was €53,727 per year, with an increase of €6,571, a 14 percent rise.

Overall, when ranking salaries by sector, computer and telecommunications jobs dominated the results, with an average gross salary of €32,520 across the board.

Along with IT business analysts, the other top earning professions were estate agent (€51,721), IT system design, (€51,343), software architects (€50,045), and IT technical managers (€48,966).

Regional breakdown

Madrid, with 791,662  job openings in 2022, and Catalonia, with 578,819, were the regions with the most vacancies throughout the year, making up 29 percent and 22 percent of the total number of positions offered on InfoJobs respectively.

The next highest number was in Andalusia (282,356 jobs, 11 percent of the total vacancies) and Valencia (236,651, 9 percent).

Mental health

However, the return to work after the pandemic also seems to have brought with it another consequence: mental health struggles.

The results of the InfoJobs survey showed that 27 percent of workers have considered leaving their job, and many of them for mental health reasons. In fact, around a third of workers cited mental health as the reason, closely followed by those citing working conditions, a desire for a career change, and to improve their work-life balance.

Analysing the data by age, workers over 45 are the ones who most often cite mental health as a reason for leaving or thinking about quitting their jobs.

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For members

BANKING

The best bank accounts for self-employed workers in Spain

Whether it be financial advisors, savings incentives, or the flexibility to do things like paying taxes and arranging payrolls, finding the right bank account can really help your self-employed working life in Spain.

The best bank accounts for self-employed workers in Spain

Being self-employed (autónomo in Spanish) can seem a little tough in Spain at times. Whether it be the endless admin, high social security charges or tax brackets, sometimes it can feel as though freelance or small business life just isn’t meant to be in Spain.

One thing that can make life a little easier is having a bank account designed especially for the self-employed.

READ ALSO: CALENDAR: The key deadlines for self-employed workers in Spain in 2024

What is a self-employed account?

A self-employed account is basically a bank account designed for self-employed people that you can open in your own name to handle all your professional money matters.

Many self-employed people find this beneficial because you can keep personal money separate from business income, and generally keep a clearer, more balanced set of accounts — something that comes in handy when making a tax return in Spain.

Another benefit is that many self-employed accounts allow you to use banking services that you would not have access to via your normal current account, such as doing payrolls, if you have staff, or access to financing and loans that regular banking customers can’t get. Many also offer cash back on paying social security fees. Also, often when opening a self-employed or business account, banks offer you a personal adviser to help you with your financial decision.

So, which are some of the best bank accounts for self-employed workers in Spain?

Sabadell Self-Employed Account – Cuenta Autónomos Sabadell

Sabadell’s Self-Employed account offers an account for the self-employed zero commission charges and zero conditions. You receive a free business debit and credit card, with no maintenance fees.

Aside from immediate transfers, all other transfers are free within the EU.

You also get a return of 3 percent of your direct debit electricity and gas bills paid via the account, something handy for self-employed people with offices.

Bankinter Professional Account – Cuenta Profesional

Bankinter’s Professional Account gives you remuneration of up to 5 percent APR in the first year and up to 2 percent APR in the second (maximum balance of €5,000).

It is a commission-free online account (via web and mobile app) with which you can separate your personal and professional expenses, and you will have a personal manager at your disposal to help you resolve all your doubts and needs.

You also receive a free credit card, free national and intra-EU transfers, can make free cash withdrawals over 17,000 cash points, advance deposits, and get multi-channel access to your account.

However, there are some conditions. You must deposit a minimum of €800 per month in the account (cash deposits not be valid), keep the card active, and make at least three charges per receipt per quarter.

READ ALSO: The social security fees Spain’s self-employed will pay in 2024 

Payhawk Enterprise – Payhawk Empresas

Payhawk accounts are a little different and go beyond the traditional definition of a business account. Unlike conventional accounts, Payhawk provides an entire banking ecosystem designed to optimise financial control and simplify the management of business budgets and expenses.

This account might appeal more to self-employed and small business owners with a significant staff or turnover, rather than to individual freelance workers.

The Payhawk Business account has automated expense management, offers Visa corporate cards (physical and virtual) that have usage limits and integrated spending policies.

The Payhawk platform also automates accounting, enables budget creation and frees you up from laborious administrative tasks, and the mobile app allows you to approve funding requests and make payments from anywhere.

READ ALSO: The financial aid available to Spain’s self-employed workers in 2024 

Revolut Pro Account

The Revolut Pro Account offers 0.8 percent cashback on card payments, create professional invoices, receive payments with QR codes, and spend and send money abroad with great exchange rates

This account may be better suited to individual self-employed workers in Spain.

Revolut Pro offers various banking plans with extra features:

Standard: Free
Plus: €2.99/month
Premium: €7.99/month
Metal: €13,99/month.

N26 Business Account

The N26 Business Account appeals to the self-employed by offering a 5 percent refund of the monthly autónomo social security charge to those who pay their self-employed fee with the N26 account (up to a maximum total of €180 per year).

The N26 Business Account is 100 percent online, free, and focused on the self-employed. It offers a free Mastercard debit card, which gives you 0.5 percent back on your purchases, allows free transfers to Spain and the Eurozone, and does international transfers through Transferwise.

You can make free withdrawals at any ATM a maximum of 5 times a month, and N26 offers a 24/7 customer service.

CaixaBank Business Account – Cuenta Negocios

Caixa’s Business Account gives you a specialised bank manager who will accompany and advise you throughout the life cycle of your business. If you don’t have a website but you want to make online sales through social networks or WhatsApp, Caixa’s SocialCommerce tool allows you to do all that and manage your online business.

If you do have a website, Caixa uses Cyberpac or Addon Payments to accept payments in your online shop in a simple and secure way. Similarly, if you want to further invest in or expand your business, you can finance your fees and receipts to expand or renovate your business and take it to the next level.

The account also has no fees or commissions. However, you’ll need to meet 3 requirements in order to pay no fees on the account:

Direct debit income of at least €750 a month or €9,000 a year.

Set up a direct debit for your self-employed social security payment.

Make any of the following payments from the Caixa Business account: your taxes, employee social security contributions, employee pay slips, utility bills or card purchases.

There is a maintenance fee of €15 per month if you don’t meet the requirements.

Santander ONE Business Account – Cuenta Santander ONE Empresas (autónomos)

For new customers, Santander’s ONE Business Account offers no account maintenance fees for the first 12 months

Neither are their issue or maintenance fees for Santander debit and credit cards, or for making transfers in Euros via online banking, mobile and ATMs, except for urgent transfers. No fee for debit cash deposits and withdrawals at more than 30,000 Santander ATMs worldwide either.

You have to meet some requirements to pay no commissions:

Deposit or invoice at least €1,800 every three months by means of POS, transfers, bills, or cheque deposit.

Make one of the following operations: payment of employee salaries, payment of the self-employed quota, or make 6 uses of the account card.

The maintenance fee if you do not meet the account requirements is €30 per month.

BBVA – Business Welcome account – Cuenta Negocios Bienvenida

BBVA’s Business Welcome account allows you to transfer your direct debits from other banks free of charge, and you’ll be given a specialist bank manager whenever you need one.

If you pay your taxes and/or social security contributions directly into the Welcome Business Account, BBVA offers you 3 percent of what you pay back – up to €100 gross per quarter, meaning you could earn back €400 per year. This offer is only for new self-employed customers.

On top of that, there are no fees on conditions during the first year with BBVA’s Business Welcome account. From the second year onwards, you have to meet the following conditions each month:

You must set up a direct debit to pay your social security or professional association fee through the Business Account, and you must also pay your taxes (IVA, IRPF, business tax or corporation tax) by direct debit.

There is a maintenance fee of €12 per month if you do not meet the account requirements after the first year.

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