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Employee cost calculator in Spain
Looking to hire in Spain? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Request a demoFrequently Asked Questions (FAQs)
What are the mandatory employer costs and statutory benefits when hiring employees in Spain?
Employers in Spain are required to contribute to Seguridad Social (Social Security) at rates typically ranging from 29% to 33% of gross salary, covering contingencias comunes (general contingencies), desempleo (unemployment), formación profesional (vocational training), and FOGASA (Wage Guarantee Fund). Statutory benefits include at least 30 calendar days of paid annual leave, 14 public holidays, paid sick leave, and paid maternity/paternity leave as per the Estatuto de los Trabajadores.
How are payroll taxes and social security contributions calculated for employees in Spain?
Payroll taxes in Spain involve employer social security contributions (29%-33%) and employee contributions (6.45%), both withheld and remitted monthly via the Tesorería General de la Seguridad Social. Employers must also withhold and remit IRPF (Impuesto sobre la Renta de las Personas Físicas), Spain’s personal income tax, at progressive rates depending on the employee’s salary and personal circumstances.
What hidden or indirect employment costs should employers consider in Spain?
Beyond gross salary and social security, employers in Spain must consider the pro-rated extra payments (pagas extras, typically 13th and 14th month salaries), severance payments (indemnización por despido), and potential costs from collective bargaining agreements (convenios colectivos), which can mandate additional benefits or allowances. Administrative costs for payroll management and compliance with labor regulations also add to the total employment cost.
What legal requirements influence the total cost of employment in Spain?
Spanish law sets a national minimum wage (Salario Mínimo Interprofesional, SMI) updated annually and imposes strict rules on maximum working hours (generally 40 per week), overtime compensation, and termination, where severance can reach 33 days’ salary per year of service for unfair dismissal. Many sectors are regulated by convenios colectivos, which may mandate higher minimums or additional benefits, directly impacting employment costs.
What are common employment practices and contract types in Spain that affect employer obligations?
Permanent (contrato indefinido) and temporary (contrato temporal) contracts are standard, with probationary periods usually between 2 and 6 months depending on the role and agreement. Customary practices include offering two annual extra salary payments in June and December, and many companies provide supplemental private health insurance, though this is not legally required.
