Find your employer of record in Spain
Spain
Euro (EUR)
Currency
monthly
Payroll Frequency
0 to 29.90
Employer Tax
With 2 clicks, start your journey to Hire a contractor or remote employees in Spain without a entity set up.
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Madrid
Euro (EUR)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
Write ReviewFind your employer of record in Spain
Spain
Euro (EUR)
Currency
monthly
Payroll Frequency
0 to 29.90
Employer Tax
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Madrid
Euro (EUR)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
With 2 clicks, start your journey to Hire a contractor or remote employees in Spain without a entity set up.
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Overview
Euro (EUR)
CURRENCY
Madrid
CAPITAL
monthly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 29.90
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Spain
0% - 23.60%
Social Security (1,125.90 EUR is the minimum and 4,139.40 EUR is the highest monthly base)
0% - 5.50%
Unemployment (General)
0% - 0.20%
Salary Guarantee Fund
0% - 0.60%
Professional Training
0% - 29.9%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 4.70%
Social Security
0%- 1.55%
Unemployment (General)
0%- 0.10%
Professional Training
0%- 1.20%
Unemployment insurance (AV)
0% - 7.55%
Total Employee Cost
Employee Income Tax in Spain
Employee Income Tax (yearly)
19%
0.00 EUR - 12,450.00 EUR
24%
12,450.00 EUR - 20,200 EUR
30%
20,201.00 - 35,200 EUR
37%
35,200.00 EUR - 60,000 EUR
45%
60,000.00 EUR - 300,000.00 EUR
47%
300,000.00 EUR and over
Minimum Wage in Spain
General
Although minimum salaries are set by industry sector under collective bargaining agreements in Spain, the country generally uses a minimum pay of 965 euros per month, or 32.17 euros per day.
Temporary workers, seasonal employees, and those employed by the same business for fewer than 120 days cannot be paid less than 45.70 EUR a day. Domestic help employed on an hourly rate is entitled to a minimum wage of 7.55 EUR for each actual hour worked.
$1028.89 Minimum Wage per month
Payroll Contributions in Spain
Payroll Cycle
Payroll in Spain is done on a monthly basis, usually on the final day of each month.
13th Salary
In Spain, 13th and 14th wage payments are required.
In order to account for the dual payroll, which the employer will make in July and December, it is customary to divide the yearly wage into 14 installments; this is stated in the employee's contract of employment and collective agreements.
Employee Benefit in Spain
- Food stipends or coupons.
- Allowance for health insurance.
Visa and work permit in Spain
Foreign nationals may enter, remain, and operate in Spain with a work visa. The employee must apply in person for the work visa, and applications must be submitted within a minimum of 90 days before departure.
Prior to hiring a candidate or filling a position requiring a high level of competence, firms must request an employment visa from the Ministry of Labor. The residence and work visa will thereafter be issued by the Consulate or Embassy upon approval of the application by the Ministry of Labor.
VAT in Spain
In Spain, the typical VAT rate is 21%.
Working Hours in Spain
General
In Spain, a typical workweek is not allowed to exceed 40 hours. The usual Spanish working day lasts from around 8:30 – 9:00 am until around 2 pm, when it closes for siesta. Then, from 4–5.00 pm, the business hours resume until around 8 pm.
All employees are required to keep track of their actual daily working hours by "clocking" in and out during breaks or at the end of the workday under the Spanish Worker's Statute Royal Decree-Law 8/2019.
Overtime
Overtime pay is required if the weekly cap of 40 hours of work is exceeded. A single employee is only permitted to work a total of 80 additional hours a year in overtime. Following collective bargaining agreements, overtime work schedules and remuneration are closely regulated.
Working Week
Monday to Friday.
Employee Termination in Spain
Termination Process
Depending on the type of agreement and the grounds for termination, the termination procedure differs according to the Contract of employment and Cooperative Agreement in effect.
Notice Period
In Spain, notice periods are typically fixed at 15 days; if notice is not given, employers may offer cash in lieu of notice.
Severance Pay
An employment contract may be terminated by an employer either with the provision of a notice period or instantly with the pay of an indemnity in place of notice. It is also possible to combine the two, in which case a notice term is served and then an indemnification is paid for the remaining time.
Only when an employer terminates an employment relationship with no prior notice is severance pay available. In this situation, the employee would get the same amount in severance compensation if they had been notified.
Based on the employee's annual income at the time of dismissal, which includes contractual and statutory fringe benefits, the indemnification in absence of notice is determined. Additionally, if an employer wishes to end a contract, it must adhere to the following legal requirements:
- The grounds for the dismissal must be disclosed in a written notification from the employer to the employee.
- In lieu of a maximum of 12 months' salary, the employer must offer compensation in the amount of 20 days' salary for each year of employment, payable upon submission of the written notice.
- The contract must be terminated with thirty days' notice to the employee, starting from the moment the employee receives formal notification.
If the dismissal is deemed unfair, the company pays up to 42 months' salary in damages, or 45 days' pay each year of service (if hired before February 12, 2012, and 33 days after this date).
Probation Period
In most cases, probationary or probationary periods are included in collective bargaining agreements. The standard in Spain, nevertheless, is two months, with a six-month extension for senior personnel and graduate technicians.
Employee Leaves in Spain
Paid Time Offs
In Spain, workers have a right to 30 calendar days (22 working days) of paid vacation time each year. Other special entitlements might be provided by some collective agreements.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
The employee has the right to temporary disability benefits for sick pay in the event of illness or a personal injury, with a minimum of 60% of their usual wage.
Staff members in Spain are deemed to the following in the event of a common condition or an injury unrelated to their jobs:
- 1 – 3 (three) days = 0%. No duty to pay unless it is specified in the CBA or the company agrees to pay it.
- 4 – 15 days (12 days) = 60%. 60% of the employer's base payment for employee contributions.
- 16 – 20 days (5 days) = Social Security covers 60% of costs. Even if the company pays the amount on behalf of social security, 60% of the worker contribution base is paid by social security.
- 21 days + = 75% provided by Social Security. Even though the company pays the amount on behalf of social security, 75% of the worker contribution base is covered by social security.
Unless the specific CBA stipulates an alternative choice or a different corporate policy, the aforementioned is applicable.
Paternity Leave
For multiple births, the father is eligible for an additional 16 days of subsidized paternity leave, for a total of 18 weeks. Both parents are eligible for paid leave in same-sex relationships. However, in order to be eligible for paid benefits, each parent must have the proper legal link with the child. One must file for paternity leave and perks, while the other for maternity leave and benefits.
As long as the dad has properly paid contributions to social security for at least 180 working days during the last seven years or 360 days overall throughout his professional life, the Spanish government will pay 100% of the fatherhood pay. There are still some taxes related to salary payments that the employer is responsible for.
Other Leave
Once accepted by both the employer and the employee, employees may be permitted extra leave kinds depending on the applicable Collective Agreement for the following reasons:
- Employees may take up to 2 years of unpaid absence to care for very ill family members or members of their household.
- Workers have a right to two days off work (four if travel is necessary) to care for a member of the family who is suffering from a serious accident or illness.
- Workers on maternity leave are entitled to an additional two weeks of leave in the event that a kid, whether biological, adopted, or raised in foster care, has a disability.
- For the loss of a family member, workers are eligible to two days of paid leave (four days if traveling is necessary).
- An employee is entitled to one day of leave if they are relocating to a new residence.
- In the event of a marriage, employees have the right to up to 15 days of leave.
- Employees have access to compensated time off when it is essential to fulfill their civic or individual duties (such as appearing in court). It must be communicated in writing.
- Employees may be eligible for supplementary leave when engaging in trade union or workers' representative activities, as specified by legislation or collective bargaining agreement.
Maternity Leave in Spain
An employee who is pregnant is eligible to 16 weeks of unpaid leave, which could be extended to 18 weeks in the case of difficult childbirth or for multiple deliveries.
There are two sections to the 16 weeks of maternity leave:
- Mandatory leave for the initial six weeks following childbirth.
- Residual leave for the subsequent 10 weeks of a complete absence or twenty weeks of half-day absence, which may be claimed any time for one year later (with 15 days’ warning).
The Social Security Administration Health Insurance Fund is responsible for managing and disbursing maternity pay. Employees on maternity leave get Social Security benefits, which are computed as a monthly benefit equal to 100% of the mother's standard rate.
Pregnant women have a right to healthcare before, during, and after giving birth. To get these services, they must go to a healthcare facility with the Sistema Nacional de Salud (National Health Service) membership card.
There are 112 leave throughout the year.
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