
Payroll and Benefits Guide Spain
Last updated: Mar 21, 2022
Contributions
Employer
Employer Payroll Contributions
24.10% |
Social Security (includes pension, minimum monthly base is 1,166.70 EUR and the maximum is 4,495.50 EUR) |
5.50% |
Unemployment |
0.20% |
Salary Guarantee Fund |
0.60% |
Professional Training |
1.65% |
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
Employee Payroll Contributions
4.80% |
Social Security (minimum taxable monthly salary is 1,166.70 EUR and the maximum is 4,495.50 EUR) |
1.55% |
Unemployment (minimum taxable monthly salary is 1,166.70 EUR and the maximum is 4,495.50 EUR) |
0.10% |
Professional Training (minimum taxable monthly salary is 1,166.70 EUR and the maximum is 4,495.50 EUR) |
6.45% |
Total Employee Cost |
Employee Income Tax
19.00% |
0.00 EUR – 12,450.00 EUR |
24.00% |
12,450.00 EUR – 20,200 EUR |
30.00% |
20,201.00 EUR – 35,200 EUR |
37.00% |
35,200.00 EUR – 60,000 EUR |
45.00% |
60,000.00 EUR – 300,000.00 EUR |
47.00% |
300,000.00 EUR and over |
Employer taxes
Employee taxes
Minimum Wage
General
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)
Payroll
Payroll Cycle
In Spain, the payroll frequency is monthly and paid typically on the last day of the month.
13th Salary
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.
Working Hours
General
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.
Overtime
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.
Working Week
Monday–Friday
Leave
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)
Public Holidays
There are 10 public/national holidays and others vary between regions.
Sick Days
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.
Maternity Leave
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)
Paternity Leave
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.
Other Leave
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.
Termination
Termination Process
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 Period
Notice periods in Spain are generally set at 15 days notice, if notice isn’t given, employers can give payment in lieu.
Severance Pay
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 Period
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.
Common Benefits
General
- Food allowance/vouchers
- Health insurance allowance
VISA
VISA
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
General
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.
VAT
General
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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Payroll and Benefits Guide
in Spain
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
Day | Date | Holiday | Notes |
---|---|---|---|
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 |
Friday | Jan-6 | Epiphany | |
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 |
Friday | Apr-7 | Good Friday | |
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 |
Monday | May-1 | Labor Day | |
Tuesday | May-2 | Madrid Regional Holiday | Madrid |
Monday | May-15 | San Isidro | 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 |
Tuesday | Jun-13 | San Antonio | Ceuta |
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 |
Wednesday | Dec-6 | Constitution Day | |
Friday | Dec-8 | Immaculate Conception | |
Monday | Dec-25 | Christmas Day | |
Tuesday | Dec-26 | St Stephen's Day | Balearic Islands & Catalonia |
Hi, can unused leave be paid out to the employee? TIA.
Hi Sofia, thank you for your question. Vacation days expire on the last day of each year. Unless stated in an employment contract or collective bargaining agreement,
employees are not entitled for leave to be paid out and cannot be carried over to the following year.
Hi, can the “Régimen especial” (the Beckham law) be applied to a contract managed by Papayaglobal?
Hi Marco, We can apply the special tax regime available for ex-pats, aka “Beckham law”, as long as the worker was granted with that tax regime by the tax agency. The tax rate is flat 24%.
The worker will need to provide us with a copy of the letter issued by the “Hacienda” (tax agency).
For a German located company/Start Up, What is the price for your “Global EOR” package to hire someone in Spain?
Hi Foster, thanks for reaching out. Kindly book a demo here https://papayaglobal.com/schedule-a-demo/ and someone will reach out to you so we can understand exactly what you need.
Hello! What’s are the typical benefits along with terms of agreement for a 6 month contract?
Hi Meredith, thank you for your question. We typically do not offer any in-kind benefit recommendations. However, in general, food allowance is something that is common in Spain.
Hello,
If I submit my resignation in January do I get compensated for 13th,14th salary and the unused holiday of the same year?
Thanks,
Hi Emma, thank you for your question. You would be entitled to be paid out for any unused paid holiday. However, for the 13th and 14th salary, you would not be entitled to as you would already have been paid out the previous year. You would most likely be entitled to a prorated amount which would depend on when your last day of employment is.
Hello, I have one question.
For the employees in Spain: What is the exact rate that we need to pay extra to employees in Spain when they are working less than 30% (is that correct?) from the office / so min 70% from home office?
Thank you
Hi Monica, thank you for your question. While the law has established that employers must compensate for work from home when a regular employee works more than 30% from home for at least 3 months, no minimum allowance was set. That being said, the only collective bargaining agreement that has established an amount is the banking sector. As of now, this is the benchmark that is being used, which is a home allowance of 50 EUR per month.
With Sick pay – is this based on basic pay, or does it also include specific add on (like the 13/14 month and other allowances)?
Hi James, thank you for your question. Sick pay is calculated based on the regular monthly salary and is not inclusive of 13th and 14th salary or any other component.
Can Papaya sponsor a non-eu citizen employee´s Work Visa in Spain on behalf of our entity – if we are obviously not legally constituted there on anywhere in the EU for that matter?
Hi Carlos, We can assist with the work permit process in Spain for both payroll and EOR clients. If the worker will be employed through the EOR model, our partners in Spain will be the sponsor of their work visa. If they will be employed through the clients entity in Spain, the client will be the sponsor of the work permit.
Thank you Erez, is there any one-pager or more info. that you could provide on how Sponsorship works under the EOR model, namely in Spain? If not, please contact me for a quick call or send over a more detailed explanation of the process, considerations, and requirements. It would be inmensely helpful for us. Consider that we DO NOT have an entity in Spain or the EU.
Hi Carlos, we have escalated this to your HR team as they are handling this.
Do restaurants have to pay the 14 pay periods as well? Is it legal to terminate an employees contract when they are on sick leave?
Hi Gina, thank you for your question. Typically in Spain 14 salaries are given, pro-rated if someone has not worked a full year. Collective agreements can also determine rules around these additional salaries so the employer should review which collective bargaining agreement the employee falls under as this might determine any requirement regarding the 13th and 14th salaries.
Hi Gina, thank you for your question. Typically in Spain, 14 salaries are given, pro-rated if someone has not worked a full year. Collective agreements can also determine rules around these additional salaries so the employer should review which collective bargaining agreement the employee falls under as this might determine any requirement regarding the 13th and 14th salaries.
And is it legal to terminate an employees contract for end of tourist season when they have a Baja medical? And then hire someone else to replace said person?
Hi Gina, in general no, however, if the employment agreement was fixed term, there may be other things to take into consideration. I would suggest consulting with a labor lawyer to understand your exact situation as there are a lot of factors that need to be taken into consideration.
Hi, can employers file for maternity/paternity benefits on behalf of the employee and continue to pay the employee directly?
Hi Sara, thank you for your question. Maternity leave is paid by social security and not through the employer.
Hi, I would like to know how much (as a percentage) I would have to pay in taxes per month, if I hire my son as an employee. I’m self-employed and work from home; my son lives with me. TIA
Hi Joanna, you can use our cost calculator to get an estimation of how much taxes you would need to pay here https://papayaglobal.com/cost-calculator/.
Hola !
Presently in the Netherlands waiting for an operation. Got already a certificate for longterm sick leave for 3 months. Company ask a Baja in Spain to validate this by means of a social security doctor in spain. So how can i get his ?? Rgrds Rob
Hi Rob, do you work in Spain? If so, you would need to reach out to a doctor in Spain to have your sick leave validated in Spain.
Hola Emily ! I work in Malaga since 2014 and i got my NIE and also Tarjeta Sanitaria. How and where can i find a doctor ?
Presently living in the Netherlands due to COVID-19. Thanks for your Help !
Hi Rob, this is out of the scope of what we can assist you with on the CountryPedia. However, please note that if you are working remotely, you might encounter issues with taxation and such due to you not currently residing in Spain.
Hi,
If I was to work from Spain, using Papaya (and we do not have a Spanish entity), is it possible to apply for Beckham’s law for tax purposes, and would you be able to help obtain these permissions
Thanks
Hi Saddif, It is possible to benefit from the Beckham law under EOR. However, our EOR ICP is not involved in obtaining this permission, the worker will need to apply for this on their own. If legal counsel is needed to help with this process our ICP can suggest someone.
Hello! Amazing content! Say you start working in May, do I get the extra salary on July too having worked only 3/4 months? Thank you!
Hi Davi, and thank you. Are they referring to 13 and 14 salaries? There might be some variation depending on collective bargaining agreements, but typically you will be pro-rated. It is also important to note that many companies pay 13 and 14 within the 12 monthly payments, not as an addition twice a year.
What is the minimum pay per hour in Spain when you work on Saturdays and Sundays?
Overtime pay is typically stated within the collective agreement or independent contract. Overtime pay should never be less than ordinary pay or less than equal amounts of rest in lieu of payment. Overtime hours compensated with rest in lieu of pay must be given within four months following the overtime work.
Hello,
I might relocate from France to Spain to start a new job in Madrid (with a company that I haven’t been working for anywhere else).
I have heard and read that getting a NIE can be a very cumbersome process. Could you perhaps let me know if a Spanish employer can legally hire a EU citizen who doesn’t have an NIE yet? And, if so, for how long?
Many thanks
Alex
Hi Alex, thank you for your question. An EU citizen must be registered with the Social Security authorities and have an NIE in order to be able to work in Spain. An employment contract can be drafted without the NIE and a passport number can be used as a form of identification. However, you would not be able to start working until the NIE is received.
Hello, is there a minimum maximum pay for hiring interns in Spain if under CBA (overall HC less than 50)? Is it taxable and what deductions/ benefits are mandatory? Approximate internship period is 3-6 months. Does the employer need to apply for social security number or students already have it?
Can you please explain what you mean by under CBA (overall headcount less than 50)?
In regards to your other questions:
The pay is taxable. Deductions/benefits that are mandatory are the same as those of the other employees, but social security contributions both of employer and employee are much smaller than the regular employees.
If the student is a Spanish citizen, they probably already have a Spanish social security number, so no need to apply.
Hello. Quick question please. Is marriage leave days (15days) the same across Spain? Or is it likely that the CBA of the region will give a different number of days? I am interested to find out what is the entitlement in the Cantabria region. Thanks a lot
The entirety of Spain grants 15 calendar days of paid leave for marriage.
Hi,
is there a legal requirement for an employer to pay out salary in advance, if an employee ask for this?
Lets say an employee has is paid 1.400 each month on the 1st, can they then on the 15th ask for an advance of 600 € and then only get paid the rest 800 on the first?
There is no legal requirement to pay salaries in advance. For fixed salaries, the employee shall receive any salary amounts actually earned and accrued, proportional to the time worked. Salary pay-out schedules are normally indicated in employment contract eg. the services provided shall be paid on the last working day of each month by means of transfer to the bank account designated by the employee.
Hi. How long someone can stay employed through EOR in Spain, before is required to be hired directly by the company’s local entity? Is there any time limit?
There is no specific limit. However, the EOR model is generally seen as something more temporary whilst a company looks to create an entity in the long term.
Hi would appreciate your advise what is the term when no prohibition period in the agreement but termination according to law – how many days needs to pay – what is teh notice period given to the emplyee
Termination according to law means a worker would be entitled to a severance pay of 20 days or 33 days of salary per each year worked, depending if the dismissal was considered “objectivo” (grounded/fair/justified) or “improcedente” (unfair). Notice Period is 15 days, minimum by law. A higher period can however be agreed upon.
For someone on fixed term contract hired via third party what is the maximum period that the contract can be extended? Are there any statutory benefits that the fixed term employee is entitled to?
Hi, with the new Digital Nomad Visa beginning in January 2023, what options do the companies have in United States with papayaglobal to hire somebody from Latin America that wants to relocate to Spain?
Hi Gustavo,
the digital nomad visa is independent of EOR sponsorship so we can’t support this visa type. That said, the answer would depend on the company’s setup, the specific worker’s country of citizenship, immigration status, and the project country. For instance, if a US company is using Papaya for EOR in Peru and have hired a Peruvian national that wants to get a Spain digital nomad visa, this may be an option since they don’t have to remain in Peru to maintain their citizenship. That said, if the worker is not a Peruvian national or even holding permanent residency in Peru, they may be able to obtain the digital nomad visa for Spain, but wouldn’t be able to maintain their immigration status in Peru as there would be requirements on how long they can be outside of the country, tax implications, etc.
In most cases, if a US company is using an EOR in a South American country and hiring ex-pat workers there that now want to move to Spain, it may make more sense for them to move the worker to our EOR provider in Spain.
Hi – For Fathers that are entitled to paid paternity leave, do all actually receive 100% of their pay, or is the a maximum/limit for those with higher salaries?
It is 100% of the contribution base (“base de cotización”) which is monthly gross salary capped to a maximum amount of 4,495.50 EUR (this amount changes each year). This means that any workers paid 4,495.50 EUR per month or higher will only receive 4,495.50 EUR during the paternity leave period.
Thank you. So a father making more than 4495.50 euros per month would earn less during paternity leave? Is that correct? For example, if their normal gross salary was 7000 euros per month, they would only be paid 4495 euros per month during their paternity leave? Doesn’t this disincentive some fathers from taking paternity leave? It seems odd that someone should make less during their parental leave.
Hello,
I was offered a job with 35.000€ annual base salary. Can you please help me calcute amounts that will have to be paid for taxes and what would be monthly net amount that I would receive?
Thank you in advance
Hello, we have a tool to help you calculate taxes in over 70 countries. Here is the link: https://www.papayaglobal.com/cost-calculator/
Hello. Are employers in Spain obliged to provide a salary advance if asked by an employee?
Hello, there is no legal requirement to pay salaries in advance. Salary pay-out schedules are normally indicated in the employment contract.
Is it true that employers have five days gap to pay employee? And can the date change every month?
Hello, could you clarify what you mean by “five day gap”? In Spain, salaries are paid at least once a month, by the last day of the month.
Some month we have 30 for example we have 31 days in August will I receive my salary by August 30 or August 31
It can vary depending on the company, however, many companies will pay on the last business day of the month.