Balearic Islands public personnel costs rise nearly 20%

The Independent Authority for Fiscal Responsibility (AIReF) has issued warnings regarding the rapid escalation of personnel costs within the Balearic Islands government. Reports indicate that payroll expenses for public employees have grown by nearly 20% in just two years, approaching 2,400 million euros annually.

This increase is attributed to both the expansion of public staff, particularly in health and education, and various salary improvements negotiated with unions. Key drivers include the recovery of professional career paths, improvements to the insularity supplement, and general salary increases. Specifically, the payroll for the regional administration rose from 943.16 million euros in 2023 to 1,131.98 million euros in 2025, while IB-Salut's wage bill increased from 1,024.08 million to 1,196.28 million euros during the same period.

AIReF noted that the Balearic Islands' spending growth is exceptional, with an expected increase near 7%, significantly higher than other autonomous communities. The authority warned that if this uncontrolled expansion of payments is not contained, the government may face more demanding and complicated fiscal adjustments in the future to comply with spending rules.