Payroll and Benefits Guide Spain
Last updated: Mar 21, 2022
Employer Payroll Contributions
Social Security (includes pension, minimum monthly base is 1,166.70 EUR and the maximum is 4,495.50 EUR)
Salary Guarantee Fund
Work Accident Insurance (rates may vary according to the specific insurance policy)
50 EUR per month
Remote Working Allowance (minimum), must be applied when home working 30% or more of the time
32.05%+ 50 EUR/Month
Total Employment Cost
Employee Payroll Contributions
Social Security (minimum taxable monthly salary is 1,166.70 EUR and the maximum is 4,495.50 EUR)
Unemployment (minimum taxable monthly salary is 1,166.70 EUR and the maximum is 4,495.50 EUR)
Professional Training (minimum taxable monthly salary is 1,166.70 EUR and the maximum is 4,495.50 EUR)
Total Employee Cost
Employee Income Tax
0.00 EUR – 12,450.00 EUR
12,450.00 EUR – 20,200 EUR
20,201.00 EUR – 35,200 EUR
35,200.00 EUR – 60,000 EUR
60,000.00 EUR – 300,000.00 EUR
300,000.00 EUR and over
In Spain, minimum wages are fixed per industry sector in the collective bargaining agreements; however, in general, the minimum wage used in Spain is 1,080 EUR per month in 14 payments.
The minimum wage of temporary employees, as well as seasonal workers who work for the same company for less than 120 days, cannot be less than 51.15 EUR per day.
MINIMUM WAGE (PER MONTH)
In Spain, the payroll frequency is monthly and paid typically on the last day of the month.
13th and 14th-month salary payments are mandatory in Spain.
It is common practice for the annual salary to be split into 14 instalments to account for the double salary payment, which the employer will pay in July and December; this is stipulated in the employee’s employment contract and collective agreements.
The standard working week in Spain can be no longer than 40 hours a week. The typical Spanish working day is from around 8.30-9.00 am until approximately 2.00 pm and then closes for siesta, the operating hours will resume from 4.00-5.00 pm until around 8.00 pm.
The Spanish Worker’s Statute Royal Decree-Law 8/2019 requires all employees to record their effective daily working hours by “clocking” in and out when they have a break or at the end of the working day.
If work time limits of 40 hours a week are surpassed, compensation of overtime is compulsory. The maximum number of overtime hours a single employee can work is 80 additional hours per year. Overtime work hours and payments are strictly regulated following collective agreements.
Paid Time Off
Employees in Spain are entitled to 30 calendar days (22 business days) of paid annual leave in a given year. (Some collective agreements may grant other specific entitlements)
There are 10 public/national holidays and others vary between regions.
In case of illness or personal accident, the employee is entitled to temporary disability benefit for sick pay, receiving at least 60% of their regular salary.
In the case of a common disease or non-work-related injury, employees in Spain are entitled to the following:
- 1-3 days (3 days) = 0% (No obligation to pay unless the employer agrees to make the payment, or it is stated in the CBA.)
- 4 – 15 days (12 days) = 60% (60% of the employee contributions base paid by the employer.)
- 16 –20 days (5 days) = 60% paid by Social Security (60% of the employee contributions base paid by social security even if the employer makes the payment on behalf of the social security.)
- 21 days + = 75% paid by Social Security (75% of the employee contributions base paid by social security even if the employer makes the payment on behalf of the social security.)
The above is applicable unless the specific CBA states another option or a different company policy.
A pregnant employee is entitled to 16 weeks of unpaid maternity leave, with the potential to increase to 18 weeks in the event of a complicated delivery or for multiple births.
The 16 weeks of maternity leave consists of two periods:
- Compulsory leave for the first 6 weeks after the birth
- Remaining leave for the additional 10 weeks of a full absence or 20 weeks of half-day absences, which may be taken any time up to one year later (with 15 days’ notice).
The maternity pay is managed and paid by the Social Security System Health Insurance Fund. The Social security benefits are paid to employees on maternity leave calculated as a monthly benefit equal to 100% of the mother’s base rate ( NIable base from the previous month to the leave start).
All pregnant women are entitled to healthcare before, during and after birth, and need to visit the healthcare center, with their Sistema Nacional de Salud (National Health Service) user’s card to receive them.
PAID MATERNITY LEAVE (DAYS)
The father is entitled to 16 days of paid paternity leave (extended to 18 weeks for multiple births). In same-sex couples, both parents are entitled to paid leave. One needs to apply for paternity leave and benefits, and the other for maternity leave and benefits, however, in order to qualify for paid benefits, it is essential that each parent has the correct legal association with the child.
100% of the paternity pay will be paid by the Spanish Government, as long as the father has correctly paid social security contributions for a minimum of 180 working days within the past 7 years or 360 total days in his entire professional life. The employer is still liable for certain taxes that pertain to the salary payments.
Employees are entitled to take unpaid parental leave (providing at least 10 days notice), up until the minor child reaches eight years of age and for up to eight weeks continuously or over several blocks.
Depending on the Collective Agreement in place, employees may be allowed additional leave types, once approved between the employer and employee, for the following:
- Employees are entitled to up to two years of unpaid leave to assist a seriously ill household or family member.
- Employees are entitled to 2 days of leave (4 days if travel is required) to care for a family member with a serious illness or injury.
- In the case of disability of a child, an adopted child, or a foster care child, employees on maternity leave are entitled to have two additional weeks of leave.
- Employees are entitled to 2 days paid leave (4 days if travel is required) for the death of a family member.
- If an employee is moving to a new home, they are entitled to 1 day’s leave.
- Employees are entitled to up to 15 days’ leave in case of marriage.
- Employees are entitled to paid leave to perform their public or personal obligations (in court) if necessary. A written notice is required.
- When performing trade union or workers’ representative activities, employees can be granted additional leave, as established by law or collective agreement.
The termination process varies according to the Employment Agreement and Collective Agreement in place and is based on the type of contract and reason for termination.
Notice periods in Spain are generally set at 15 days notice, if notice isn’t given, employers can give payment in lieu.
Severance pay is only applicable when an employer terminated an employment agreement without notice (in this case, the severance pay would be for the same amount the employee would earn if they had been given notice).
An employer can choose either to terminate an employment contract with the granting of a notice period or to terminate the employment contract immediately with the payment of an indemnity in lieu of notice. A combination of both, where the serving of a notice period is followed by the payment of an indemnity for the remainder of the notice period is also possible.
The indemnity in lieu of notice is calculated based on the employee’s annual salary at the time of termination, including statutory and contractual fringe benefits. In addition, the following legal requirements must be complied with if an employer is terminating a contract:
- The employer must provide written notice to the employee stating the reasons for the dismissal.
- The employer must provide compensation of 20 days salary, per year of service, payable upon delivery of the written notice, up to a maximum of 12 months’ salary.
- The employee must receive thirty days’ notice of the termination of the contract, to commence from the moment of the official notification to the employee.
If the dismissal is declared unfair, the employer must pay compensation equivalent to 45 days’ pay per year of service (if employed before 12th February 2012 and then 33 days after this date), up to a maximum of 42 months’ salary.
Probation or trial periods are generally set within the collective agreements. However, a common practice in Spain is two months, extending to 6 months for graduate technicians/seniority employees.
- Food allowance/vouchers
- Health insurance allowance
A Work Visa allows foreigners to enter, stay, and work in Spain. An employee must apply for the work visa in person, and applications must have been submitted at least 90 days before travel.
If the position is to fill a highly skilled role or the candidate is a non-EU citizen, employers need to apply for a work visa from the Ministry of Labour prior to appointment. The Embassy or Consulate will then issue the work and residence visa after the Ministry of Labour has approved the application.
In Spain, there is a specific Work Visa for seasonal workers, but obtaining a visa is the same. However, seasonal workers must prove that they have accommodations arranged, travel costs are taken care of, and that they will be returning to their respective country once the job has been completed.
Remote working set ups have become very common in Spain in recent years. It is recommended to give all homebased employees a Home Working allowance of at least €50 (and upto €100 per month is common depending on the job requirements) Euros per month.
This applies when home working 30% or more of the time. Certain Secotors and Collective Bargaining Agreements make this allowance a mandatory requirement e.g. the banking sector. This allowance is taxable.
The standard VAT rate in Spain is 21%.
If you are looking into hiring in Spain without a local entity, see our Spanish PEO service.
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Public Holidays Calendar
|Sunday||Jan-1||New Year's Day|
|Monday||Jan-2||New Year’s Day Holiday||Day off in lieu – Andalusia, Aragon, Asturias, Castile and Leon, Melilla & Murcia|
|Tuesday||Feb-28||Andalusia Regional Holiday||Andalusia|
|Wednesday||Mar-1||Balearic Islands Regional Holiday||Balearic Islands|
|Monday||Mar-20||St. Joseph's Day||Madrid, Murcia, Navarre|
|Thursday||Apr-6||Maundy Thursday||National except for Catalonia & Valencia|
|Monday||Apr-10||Easter Monday||Balearic Islands, Basque Country, Cantabria, Catalonia, La Rioja, Navarre & Valencia|
|Monday||Apr-17||San Vicente Ferrer||Valencia|
|Sunday||Apr-23||Aragon, Castile and Leon Regional Holiday||Aragon, Castile and Leon|
|Monday||Apr-24||San Vicente Martir||Valencia|
|Tuesday||May-2||Madrid Regional Holiday||Madrid|
|Wednesday||May-17||Galician Literature Day||Galicia|
|Tuesday||May-30||Canary Islands Regional Holiday||Canary Islands|
|Wednesday||May-31||Castile- La Mancha Regional Holiday||Castile- La Mancha|
|Thursday||Jun-8||Corpus Christi||Castile- La Mancha|
|Friday||Jun-9||La Rioja regional Holiday||La Rioja|
|Friday||Jun-9||Murcia regional Holiday||Murcia|
|Saturday||Jun-24||St John's Day||Catalonia, Galicia, Ceuta & Melilla|
|Thursday||Jun-29||Eid al-Adha||Ceuta & Melilla|
|Tuesday||Jul-25||National Day of Galicia||Galicia|
|Tuesday||Jul-25||Saint James' Day||Basque Country & Madrid|
|Friday||Jul-28||Day of the Institutions||Cantabria|
|Saturday||Aug-5||Our Lady of Africa||Ceuta|
|Tuesday||Aug-15||Assumption of Mary|
|Saturday||Sep-2||Day of Ceuta||Ceuta|
|Friday||Sep-8||Asturias Regional Holiday||Asturias|
|Friday||Sep-8||Extremadura Regional Holiday||Extremadura|
|Friday||Sep-8||Our Lady of Victories||Melilla|
|Monday||Sep-11||National Day of Catalonia||Catalonia|
|Friday||Sep-15||Cantabria Regional Holiday||Cantabria|
|Sunday||Sep-17||Day of Melilla||Melilla|
|Monday||Oct-9||Valencia Regional Holiday||Valencia|
|Thursday||Oct-12||Fiesta Nacional de Espana|
|Wednesday||Nov-1||All Saints' Day|
|Thursday||Nov-9||Virgin of Almudena||Madrid|
|Sunday||Dec-3||San Francisco Javier||Navarre|
|Tuesday||Dec-26||St Stephen's Day||Balearic Islands & Catalonia|