The percentage of the population with incomes between €21,000 and €60,000 has risen from 26% to 38% in the Valencian Community, according to the Tax Agency.
Taxpayers in the Valencian Community with incomes between €21,000 and €60,000 have increased from representing 26% of the population in 2008 to 38% in 2024. This is reflected in the latest report from the Tax Agency on monetary compensation, which confirms a 46% increase in this segment.
Specifically, taxpayers declaring between €21,000 and €30,000 have increased from 295,761 to 492,012 people. Those earning between €30,000 and €60,000 have grown from 278,720 to 580,984 declarants. This increase is mainly due to improvements in employment, the rise in the minimum wage and pensions, and the dynamism of the Valencian economy.
Increase in SMI and pensions, key to the change
The interprofessional minimum wage has risen from €624 per month in 2009 to €1,221 in 2024. This evolution has allowed many workers to exceed the minimum threshold for declaring income tax (€22,000 with one payer). Pensions have also been significantly revalued since 2018.
The recovery of employment after the financial crisis and the banking restructuring of 2012 have been decisive. From 2014 onwards, incomes began to grow steadily, and they did so more strongly from 2018, with annual increases in the minimum wage driven by the central government.
Low incomes reduced by half
Low incomes, between €6,000 and €12,000 per year, have decreased from 27.7% to 10.07% of the population. This means that 281,226 people are in that range. Below those levels, there are still nearly 900,000 people, a figure that has barely changed in two decades.
The Caixa Social Observatory points out that, despite the strengthening of the middle class, public perception is often the opposite. The loss of purchasing power during the 2008 crisis was widespread, and although real incomes have recovered, the rising cost of living has taken its toll.
For readers interested in the Valencian economy, this data indicates a structural improvement in incomes, but also highlights that there is still a hard core of the population with very low incomes. The evolution of employment and income policies will continue to be key to maintaining this trend.
You may also like
