Hard workers in Spain are facing a shrinking disposable income as the national tax burden continues to climb well above international averages. Recent data released by the OECD in the “Taxing Wages 2026” report confirms that a single worker without children now loses 41.4 per cent of their gross earnings to the government and social security.

The figures show Spain’s “tax wedge” (the difference between what an employer pays and what a worker actually receives) has reached its tenth highest level across the 38 nations of the Organisation for Economic Co-operation and Development (OECD). Spanish tax pressure grew by 0.31 percentage points over the last year, a rate more than double the OECD average increase of 0.15.

Salary increases failing to match Tax growth

Workers experienced a real-term loss in purchasing power throughout 2025 because tax hikes overtook wage growth. Average salaries rose by 1.2 per cent, while personal income tax jumped by 1.5 per cent, resulting in a 0.3 per cent drop in what people could actually afford to buy. Spain remains one of only seven OECD countries where this specific imbalance led to a direct reduction in household wealth.

Most of this growth came from personal income tax, which rose by 0.25 percentage points in Spain despite falling slightly across the rest of the developed world. This trend suggests that even when employees receive a pay rise, the state claims a larger portion of the increase, leaving families with less money for daily essentials. The pay rise essentially goes to more tax, potentially eliminating the impetus to work harder.

Spain’s burden of high social security costs

Business owners also face heavy pressure, with employer social security contributions accounting for a massive 23.4 per cent of total labour costs. This figure dwarfs the OECD average of 13.5 per cent and creates a major barrier for companies looking to hire new staff. Higher business costs make Spain a more expensive place to operate compared to many neighbouring economies.

Personal income tax (IRPF) accounts for another 13.1 per cent of the gross salary, while employee social security contributions add a further 5 per cent to the total deduction. While the average developed nation requires a 13.5 per cent contribution from employers, Spain demands nearly double that amount, making it almost impossible for small businesses to expand their teams.

Failure to adjust for inflation costs workers

Financial experts at the General Council of Economists point to a lack of inflation indexing as a primary cause for these rising costs. Tax brackets have stayed static even as nominal wages increased, meaning many low-to-middle-income earners are pushed into higher tax bands without experiencing a genuine improvement in their lifestyle.

Many warn that this “fiscal drag” effectively erases the benefits of hard-won pay rises before the money ever reaches a bank account. In some cases, a pay increase can almost entirely disappear once tax benefits and subsidies are reduced or cut off due to the higher gross figure.

The OECD cautioned the Spanish government that such a heavy focus on workers’ taxation discourages job creation. They recommend moving toward alternative revenue sources, such as environmental levies or VAT, to help strengthen employment incentives. Belgium currently leads the world with a massive 52.5 per cent tax wedge, while countries like Colombia and Chile maintain much lower burdens at 0 per cent and 7.5 per cent, respectively.

Passengers booking the cheapest Brussels Airlines tickets on short and medium haul routes are about to see a major change. Free cabin bags will no longer be included on the lowest fare, meaning many travellers who want to bring a standard hand luggage case will have to pay more.

The move forms part of a wider shake up across the Lufthansa Group and is likely to affect people who have grown used to travelling with a trolley bag included in the cheapest ticket.

For budget conscious passengers, city breakers and expats making regular hops across Europe, it could make headline fares look cheaper while the final cost rises once luggage is added.

What is changing with Brussels Airlines fares

Until now, Brussels Airlines’ cheapest fare, known as Economy Light, included two items: one small personal item and one cabin bag. That meant travellers could normally bring a backpack or laptop bag, plus a small wheeled case that fitted airline cabin dimensions.

Under the new system, a fresh entry level fare called Economy Basic will only include a personal item, such as a handbag, laptop case or small backpack that fits under the seat.

Anyone wanting a larger overhead cabin bag will need to choose a higher fare or pay more.

In simple terms, the cheapest ticket becomes more restrictive. Airlines often present these changes as offering passengers more choice, but for many travellers it will feel like something once included now costs extra.

When the new baggage rules begin

Brussels Airlines says the new fare will be tested from 28 April, for journeys starting on 19 May, on selected routes. The long term aim is to roll it out across the airline’s continental network.

That means more routes across Europe are expected to adopt the new model once the trial period ends. Passengers booking in the coming weeks may want to check carefully which fare type appears during the booking process, especially if they assume cabin baggage is automatically included.

That assumption could become expensive.

Why airlines are doing this

Charging separately for baggage is hardly new in aviation. Low cost carriers have done it for years, and many passengers now compare ticket prices based on the headline fare first, then decide later whether to add luggage, seat selection or priority boarding.

Traditional airline groups have increasingly moved in the same direction. By separating services, airlines can advertise lower starting prices while earning extra revenue from optional add ons.

They also argue that some passengers travel light and should not pay for services they do not use. Brussels Airlines says the new fare gives day trippers and light travellers another low entry option.

That may be true for some. But for anyone carrying a normal cabin case, the total price may end up much closer to existing fares.

Who will notice the change most

Frequent travellers are often the quickest to spot these shifts. Many people travelling for work, short breaks or second home visits rely on cabin luggage to avoid check in queues and baggage reclaim.

For them, hand luggage is not a luxury. It is part of the basic trip. Expats travelling between Belgium, Spain, Italy, Portugal or other European destinations may also feel the impact, especially on regular weekend visits.

Families could notice it too. A cheap fare for several people can look attractive at first glance, but once bags are added the bill can change quickly. That is why comparing the full cost, not just the first price shown, matters more than ever.

Other airlines in the Lufthansa Group are following

This is not only about Brussels Airlines. The same basic fare model is also expected across other Lufthansa Group carriers, including Lufthansa, Swiss, Austrian Airlines, Discover Airlines, Lufthansa City Airlines and Air Dolomiti.

That gives the move wider significance across Europe. Millions of passengers fly with these brands every year, so the new baggage structure could become standard across a large part of the market. If successful, other airlines may study the results closely.

What travellers should check before booking

The key point is simple: read the fare conditions before paying. Look at what is included, the size of the personal item allowed and the cost of adding a cabin bag later.

In many cases, buying the next fare up from the start may work out better value than choosing the cheapest fare then adding extras one by one.

Travellers should also check return journeys carefully, as baggage terms can differ between airlines on connecting routes.

A cheaper ticket, or just a different price tag?

Airlines know customers love seeing a low fare on screen. What happens after that depends on what the passenger actually needs.

For someone travelling with only a laptop bag, the new system may suit perfectly. For everyone else, the cheapest fare may no longer be the cheapest journey.

That is the real change hidden behind the new Brussels Airlines pricing plan.

Starting today, April 23, the 018 road accident helpline is active in Spain as a national support service for people affected by road traffic accidents. Operated by the Dirección General de Tráfico (DGT), it provides assistance across the country to anyone involved in or impacted by a road incident.

Unlike emergency services number 112, 018 is not designed for reporting an accident as it happens. It is intended for use afterwards, when immediate danger has passed and people may need help understanding what to do next. The service is available 365 days a year, from 08:00 am to 09:00 pm, giving callers access to support throughout the day, including weekends and public holidays.

What happens when you call 018

When you dial 018, you are connected to a trained support operator rather than emergency responders. The call is handled by staff who guide the caller through the situation step by step. The conversation usually begins with basic details about the accident. This may include when and where it happened, whether emergency services were involved, and whether medical attention has already been received. 

From there, the focus shifts to the caller’s current needs. This can include emotional support if the person is distressed, disoriented or dealing with shock after the incident. The final part of the call is practical guidance. Call handlers explain what typically needs to be done after a road accident in Spain, such as how to obtain reports, what steps may be required with insurance providers, and where to seek follow-up support.

The service is also designed to be accessible to international users, with assistance available in up to 50 languages, helping non-Spanish speakers communicate their situation and understand the guidance provided. The aim is to help the caller leave the conversation with a clearer understanding of what to do next.

Who the service is for

The 018 helpline is available to anyone affected by a road traffic accident in Spain, regardless of nationality or residency status.

This includes:

• Residents living in Spain, including foreign nationals 
• Tourists involved in road traffic accidents 
• Family members of injured or deceased individuals 
• Witnesses directly affected by a serious incident 

For expats and tourists, the service can be particularly helpful when dealing with unfamiliar procedures or language barriers after an accident.

The helpline is available nationwide and can be accessed from anywhere in Spain.

What kind of help you can expect

The support offered through 018 covers several types of assistance that are commonly needed after a road accident. Callers may receive psychological support if they are dealing with shock, anxiety or emotional distress following the incident.

They may also be given basic legal orientation, helping them understand general next steps after a collision, including documentation and reporting processes.

In addition, the service can provide information on accessing medical care and rehabilitation services, as well as guidance on relevant public support options. In more serious situations, such as major injury or bereavement, family members can also be supported and directed towards appropriate services.

For foreign residents and visitors, this can help reduce uncertainty when dealing with processes they may not be familiar with.

A support service, not an emergency line

The 018 number is not an emergency service. It does not replace 112, which remains the number for urgent medical assistance, police response or fire services. If an accident is happening or there is immediate danger, 112 should always be called first.

018 is intended for use after the emergency has been resolved, when people need help understanding and managing what comes next. It is also not a substitute for formal legal advice, insurance handling or medical diagnosis. Instead, it provides general guidance and helps direct people towards the appropriate services.

People can contact the service in several ways:

• Telephone: 018
• WhatsApp: 645 713 823
• Email: victimastrafico@dgt.es
• Online contact options through official DGT channels

This range of contact methods may help travellers who do not have immediate access to a local phone line but can use mobile data or messaging apps.

Part of the accident aftermath support process

The introduction of 018 provides a single national contact point for people dealing with the aftermath of road traffic accidents in Spain. For many people, especially those unfamiliar with the system, the period after an accident can involve uncertainty around documentation, medical follow-up and administrative steps.

This service brings those queries into one place, offering structured support at a time when individuals may be under stress. In simple terms, the distinction is clear: 112 is for emergencies, while 018 is for guidance once the immediate situation has passed.