The average gross salary in theBalearic Islandsis €8,500 (£7,400) below what is needed for adecent standard of livingin the archipelago, a new study has revealed. The CCOO (Workers' Commissions Union) has stated that the average salary for a worker in the Balearics, which comprises the popular tourist islands ofMajorca, Ibiza, Menorca and Formentera, is currently €23,100 (£20,090).
However, the minimum should be at least €31,646 (£27,522) - 37% higher - it warned. The result, it added, is a widening gap between wages and thecost of living. This 10-year trend goes a long way to explain why more workers are struggling to get by, even though the archipelago's job market remains strong. According to the study,housing costscan now absorb almost 80% of the average salary.
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As a result, the CCOO is calling for sustained salary increases within the framework of collective bargaining agreements and for intervention in the housing market. It wants the Balearics to be declared a high-demand, or stressed, area, withrent capsand decisive action to increase the stock of public housing. However, the government has consistently stated that it will not adopt rent caps.
Regarding salaries, the union argued that, to compensate for the real cost of living, they should have increased by 14% over the past year. The hospitality industry agreement that was struck last year was for 13.5% over three years. The renewal of other agreements is for similar percentage increases. In the retail sector, unions are seeking 17% over four years, according to theMajorca Daily Bulletin.
It has also proposed measures to containfood pricesthrough a basic food basket with price caps and by making transportation more affordable through structural improvements to public transport and mandatory connections to the mainland.
The report warns that so long as the average salary remains so far removed from the real cost of living, the Balearics will end up with a model in which having a job does not guarantee decent living standards.
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Majorca’s limited land and strict planning laws have created a permanent shortage, but on top of this, available stock is increasingly used for profit. Thousands of apartments have been converted intoshort-term rentals. In 2024, it was estimated that for every one new apartment built, three new households were formed. About a third of property purchases are made bynon-residents, primarily from Germany, the UK and Scandinavia.
Source: Daily Express :: World Feed
