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Spain

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Spain
Everything you need to know about payroll, benefits & hiring top talent in Spain

Currency

Euro (EUR)

Salary payment frequency

Monthly

Capital

Madrid

Time Zone

GMT +1:00

Official Languages

Spanish

Is English spoken?

Yes
Spain | Global Employment

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Introduction

General Overview & Economic Facts
  • Spain, or España, officially the Kingdom of Spain (Reino de España), is a country in Southwestern Europe with territory across the Strait of Gibraltar and the Atlantic Ocean
  • Spain is a secular parliamentary democracy and a parliamentary monarchy, with King Felipe VI as head of state
  • Spain is a developed country and a high-income country, with the world’s fourteenth-largest economy by nominal GDP and the sixteenth-largest by PPP
Why Employ In Spain?
  • The main exports from Spain are cars, pharmaceuticals, and petroleum  
  • 9.9% of the population is between the ages of 15 and 24 years, with 43.61% of the population being between the ages of 25 and 54. Spain has a youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law

  • Employment law in Spain is codified in the Spanish Civil Code and the Spanish Workers’ Statute (Estatuto de los Trabajadores)
  • The Spanish Workers’ Statute regulates employment contracts as well as collective bargaining agreements
  • Spanish labour regulations deal with matters such as social security, trade unions, health and safety, categorisation of  employment and training 
  • Spanish employment law provides strong labor conditions and protections for employees
Fun Country Facts
  • The Spanish national anthem has no words
  • Madrid, Spain is home to the world’s oldest restaurant
  • Spain has a tooth mouse instead of a tooth fairy
Why Use Playroll Services For Spain?
  • Employing in Spain requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance
  • This can get quite complicated, especially with the complexity of employment laws in Spain.  With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

Unemployment Contribution

For full-time and fixed term contracts

5.50%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month

Medical

Called Common Contingencies in Spain
For full-time and fixed term contracts.

23.60%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month

Professional Training

Called Formaccion Professional in Spain
For full-time and fixed term contracts

0.60%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month

Workplace Injuries

Called Professional Contingencies In Spain
Employer contribution rates vary depending on the industry and nature of work being performed.

Office workers

1.50%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month. Professional contingencies cover expenses resulting from labour accidents and occupational diseases

Miners and bricklayers

6.70%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month. Professional contingencies cover expenses resulting from labour accidents and occupational diseases

Salary Guarantee Fund
Called Fogasa In Spain
For full-time and fixed term contracts

0.20%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month

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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

Unemployment Contribution

For full-time and fixed term contracts.

1.55%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month.

Medical

Called Common Contingencies in Spain.
For full-time and fixed term contracts.

4.70%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month

Professional Training

Called Formaccion Professional in Spain.
For full-time and fixed term contracts.

0.10%
Calculated on a minimum salary of EUR 1,050.00 to a maximum salary of EUR 4,070.10 per month.

Income Tax

Income tax is on worldwide income.

Income bracket per annum

0.00 – 12,450.00
19.00%

12,451.00 – 20,200.00
24.00%

20,221.00 – 35,200.00
30.00%

35,201.00 – 60,000.00
37.00%

60,001.00 – 300,000.00
45.00%

300,000.00 or more
47.00%

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Employment Terms

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General

Minimum Wage
  • EUR 965.00 per month
Working Hours
  • Maximum of 40 hours per week and 9 hours per day
  • Minimum 15-minute meal interval
  • Typical working hours are 08h00 to 17h00
Overtime
  • Maximum of 80 hours per year
Notice Period
  • Minimum 15 days
  • Notice period may be extended by contract or by reference to a Collective Bargaining Agreement
Severance Pay
  •  20 days’ salary per year of service capped at 12 months’ salary
Probation Period
  • There is no statutory probation period
  • Employees can expect a probation period between 2 and 6 months
Bonus
  • 13th and 14th cheques (known as Summer and Christmas bonuses) are mandatory. These are usually pro-rated over a 12-month period

  • Alternatively, bonus payments double an employee’s salary for the month that it’s paid in
Public Holidays
Public holidays 2022

    • January 1st – New Year’s Day
    • January 2nd – Reconquest Day
    • January 6th – Epiphany
    • April 14th – Maundy Thursday
    • April 15th – Good Friday
    • April 18th – Easter Monday
    • May 1st – Labour Day

    • May 2nd – The Labour Festival
    • August 15th – Assumption of Mary
    •  October 12th – National Day of Spain
    • November 1st – All Saint’s Day
    • December 6th – Constitution Day
    • December 8th – Immaculate Conception
    • December 26th December- Day After Christmas Day
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    Leave

    Paid Leave / Vacation Days
    • Paid leave
    • Paid by employer
    • 23 working days per year
    Maternity Leave
    • Paid leave
    • Paid by Social Security
    • Minimum of 16 weeks per year for a single birth, 18 weeks per year for twins and 20 weeks per year for triplets
    Paternity Leave
    • Paid leave
    • Paid by Social Security
    • Minimum of 16 weeks per year
    Family Care Leave
    • Paid leave
    • Paid by employer
    • Minimum of 2 calendar days per year, maximum of 4 calendar days per year
    Marriage Leave
    • Paid leave
    • Paid by employer
    • Minimum of 15 calendar days per year
    Moving Leave
    • Paid leave
    • Paid by employer
    • Minimum of 1 day per year
    Adoption Leave
    • Paid leave
    • Paid by Social Security
    • Minimum of 6 weeks per year, maximum of 10 weeks per year
    Start hiring in Spain today!