Despite enjoying a third consecutive year of record-breaking tourism figures, the Canary Islands remained one of the regions with the lowest wages in Spain in 2025, according to newly released figures from the National Statistics Institute (INE).

The data highlights a continuing gap between the islands' booming tourism industry and the wages earned by many of its workers.

Second-lowest average salary in Spain

The INE's Annual Labour Cost Survey for 2025 shows that the average annual salary in the Canary Islands was €23,264, making it the second-lowest in Spain, just €10 a year higher than Extremadura, which recorded the country's lowest average salary at €23,254.

By comparison, the national average salary stood at €28,411, while workers in the Balearic Islands earned an average of €28,742 a year, significantly higher than their counterparts in the Canaries.

The figures mean the Canary Islands have retained the same position in the national rankings for average pay, despite several years of exceptional tourism growth.

Tourism continues to boom

The statistics come after the Canary Islands recorded another historic year for tourism in 2025, marking the third consecutive annual record for visitor arrivals following similar highs in 2023 and 2024.

Tourism now accounts for 37.5% of the region's Gross Domestic Product (GDP), making it by far the largest contributor to the Canary Islands economy and its biggest private-sector employer.

However, the latest figures suggest that this economic success has not translated into significantly higher wages for many employees.

Labour costs also among the lowest

The survey also found that employers in the Canary Islands faced the second-lowest labour costs in Spain, again behind only Extremadura.

The average net labour cost per employee in the Canary Islands was €32,017 in 2025, compared with €31,657 in Extremadura.

Across Spain, the average net labour cost reached €38,512 per employee, an increase of 3.2% compared with the previous year.

The regions with the highest labour costs were:

• Madrid – €45,983 per employee
• Basque Country – €44,034 per employee
• Navarre – €41,697 per employee

Meanwhile, after Extremadura and the Canary Islands, the Region of Murcia recorded the third-lowest labour costs at €33,293.

A long-running trend

The latest figures continue a pattern that has persisted since the recovery from the COVID-19 pandemic.

While tourism has generated record visitor numbers and strong economic growth, average earnings in the Canary Islands have remained among the lowest in the country, raising ongoing questions about how the benefits of the islands' tourism success are being shared with the workforce.