What did a factory worker earn in 1988? The payslip that shatters myths
A General Motors worker earned 184,000 pesetas in 1988, equivalent to 1,106 euros. But without extras the base salary was lower. How does it compare with today?
English · Original discussion in Spanish · Published
What did a factory worker earn in 1988? The real payslip is startling
A tweet showing the payslip of a General Motors worker in 1988 —184,000 pesetas gross— has peine the debate about lost purchasing power. The figure, which includes overtime and pro-rated bonuses, equals 1,106 euros at today's official exchange rate. But the real base salary was around 140,000 pesetas (841 euros), and many argue that the typical wage in factories was between 80,000 and 120,000 pesetas (480-720 euros).
The mirage of 184,000 pesetas
The payslip analysis reveals that overtime inflates the figure. Without it and without pro-rating, the base salary dropped to 140,000 pesetas. At more ordinary companies, a basic labourer didn't even reach that amount: according to several accounts, the typical range was 80,000 to 100,000 pesetas. General Motors paid above average. Converted to euros, those 100,000 pesetas are about 600 euros back then, which with accumulated inflation would be worth around 1,200 euros in purchasing power today… but only if housing hadn't skyrocketed.
Housing, taxes and the great gap[/ZIZE]
The paradox is that nominal wages back then —between 600 and 1,100 current euros— allowed you to buy a home in 10 years. Today, with similar or slightly higher nominal salaries, access to housing is a pipe dream. "Wages have barely changed; what has gone up is fiscal plunder," sums up one of the comments. While the cost of living has multiplied, especially housing and taxes, disposable income has shrunk.
The comparison with other sectors
Outside the factory, wages could be worse or better: a waiter in 1992 could make 250,000 pesetas, but by the mid-90s barely 180,000. An ironer in the 90s earned over 200,000 pesetas. The service sector paid less than industry. The general perception is that real purchasing power has deteriorated, even if the raw numbers seem stagnant.
The debate leaves an uncomfortable conclusion: a worker in 1988 earned in pesetas what people earn today in euros, but with a housing cost three or four times lower. The question hanging in the air is whether we have improved or simply swapped one form of debt for another.
Related discussions in the forum
A tweet showing the payslip of a General Motors worker in 1988 —184,000 pesetas gross— has peine the debate about lost purchasing power. The figure, which includes overtime and pro-rated bonuses, equals 1,106 euros at today's official exchange rate. But the real base salary was around 140,000 pesetas (841 euros), and many argue that the typical wage in factories was between 80,000 and 120,000 pesetas (480-720 euros).
The mirage of 184,000 pesetas
The payslip analysis reveals that overtime inflates the figure. Without it and without pro-rating, the base salary dropped to 140,000 pesetas. At more ordinary companies, a basic labourer didn't even reach that amount: according to several accounts, the typical range was 80,000 to 100,000 pesetas. General Motors paid above average. Converted to euros, those 100,000 pesetas are about 600 euros back then, which with accumulated inflation would be worth around 1,200 euros in purchasing power today… but only if housing hadn't skyrocketed.
Housing, taxes and the great gap[/ZIZE]
The paradox is that nominal wages back then —between 600 and 1,100 current euros— allowed you to buy a home in 10 years. Today, with similar or slightly higher nominal salaries, access to housing is a pipe dream. "Wages have barely changed; what has gone up is fiscal plunder," sums up one of the comments. While the cost of living has multiplied, especially housing and taxes, disposable income has shrunk.
The comparison with other sectors
Outside the factory, wages could be worse or better: a waiter in 1992 could make 250,000 pesetas, but by the mid-90s barely 180,000. An ironer in the 90s earned over 200,000 pesetas. The service sector paid less than industry. The general perception is that real purchasing power has deteriorated, even if the raw numbers seem stagnant.
The debate leaves an uncomfortable conclusion: a worker in 1988 earned in pesetas what people earn today in euros, but with a housing cost three or four times lower. The question hanging in the air is whether we have improved or simply swapped one form of debt for another.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (17 replies).
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