Santa Eulària is putting more money behind its public workforce as the municipality becomes the first public administration on Ibiza to implement the increased residence allowance for its employees.

The new measure will benefit around 300 municipal workers and will cost the town hall more than €1 million extra every year. The municipality says the increase recognises the challenges of living and working on an island where housing and everyday costs have risen significantly.

A Response to Ibiza’s High Cost of Living

The allowance brings municipal employees in Santa Eulària into line with the new residence compensation approved for employees of Spain's General State Administration working in Ibiza.

The town hall says the decision is intended not only to recognise the additional costs associated with island life, but also to help attract, retain and stabilise qualified professionals within the municipality.

This has become an increasingly important issue in Ibiza, where the cost of housing and living can make it difficult for public administrations to recruit and retain workers.

Around 300 Employees Will Benefit

Approximately 300 employees will receive the updated residence allowance.

Santa Eulària says it is the first public administration on Ibiza to make the increased payment effective for its workforce.

The measure follows a unanimous decision by the municipal plenary in July 2024 calling on the central government to update residence compensation, which had remained outdated since 2006.

At the time, the municipality highlighted the impact of rising housing costs and the general increase in the cost of living on the island, as well as growing difficulties filling public-sector vacancies.

Personnel Spending Has More Than Doubled Since 2019

The new allowance comes as part of a much broader increase in Santa Eulària's investment in its employees.

With the additional residence compensation included, the municipality expects to spend around €20 million on personnel during 2026.

That compares with €9.715 million in 2019, when the current government team began its term.

The increase amounts to more than €10.2 million, or approximately 106% growth over seven years.

The town hall says the additional spending has helped stabilise its workforce, develop its first formal Relación de Puestos de Trabajo (RPT) and strengthen municipal services.

Another €1.3 Million Goes Into Career Development

The residence allowance is also being introduced alongside Santa Eulària's professional career programme for municipal employees.

Investment in that programme for 2025 and 2026 exceeds €1.3 million.

Santa Eulària says it is currently the only island administration to link professional progression to an objective performance evaluation system.

The model takes into account factors including an employee's professional trajectory, training, conduct in their position and achievement of individual and collective objectives.

€2.3 Million More in Personnel Investment in 2026

Taken together, the new residence allowance and professional career programme represent an additional €2.3 million in personnel investment during 2026.

The municipality argues that the spending is not simply about increasing salaries, but about ensuring that Ibiza can continue to attract professionals and maintain stable public services despite the island's particular economic pressures.

Why It Matters for Ibiza

The announcement comes against the backdrop of one of Ibiza's biggest long-term challenges: how to keep essential workers living and working on the island.

The cost of housing has become a major obstacle for workers across Ibiza, affecting both the private and public sectors.

For public administrations, the problem can be particularly important because difficulty recruiting workers can directly affect services such as administration, social services, policing and other municipal functions.

Santa Eulària's new allowance represents one attempt to address that problem by recognising the additional financial burden associated with working on an island.

Whether similar measures will be adopted by other public administrations across Ibiza remains an important question.

For now, Santa Eulària has become the first to put the increased residence allowance into practice — with an annual price tag of more than €1 million for its municipal workforce.