Choose your role below
Employer
Job Seeker
Hiring in Spain? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Spain?
Employment Norms in Spain
Spain is a country located in southwestern Europe and is the fourth largest economy in the Eurozone. The country has a unique employment culture, which is influenced by several factors, including labor laws, social welfare programs, and cultural attitudes.
General Information:
- The currency of Spain is Euro, EUR.
- Madrid is the capital of Spain.
- Spanish is the official language of Spain Catalan, Basque, and Galician. Though it is not mandatory, if both parties are local then the contracts and agreements can be drafted in Spanish. Documents drafted in any other language than Spanish, need to be translated to be invoked in court legally.
- As of 2021, the GDP of Spain was reported to be 1.43 trillion USD.
Spain has strict labor laws that govern working conditions, wages, and benefits. These laws also protect workers from discrimination and unfair treatment.
Table of Contents
- Agreements
- Onboarding Process
- Visa
- Minimum Wage
- Payroll Cycle
- Annual Bonus
- Health Benefits
- Working Hours and Overtime
- Leaves
- Social Security
- Taxes for Employers
- Taxes for Employees
- Probation
- Termination
- Severance Pay
- Employees or Contractors
- Final Words
AgreementsOnboarding ProcessVisaMinimum WagePayroll CycleAnnual BonusHealth BenefitsWorking Hours and OvertimeLeavesSocial SecurityTaxes for EmployersTaxes for EmployeesProbationTerminationSeverance PayEmployees or ContractorsFinal Words
Agreements
Employment agreements in Spain are governed by the Worker's Statute and other relevant labor laws:
- The language of agreements must be in Spanish or any other regional language accepted by law.
- The employment contract must specify the employee's job duties, work schedule, compensation, and benefits.
- Collective bargaining agreements between employers and labor unions are common in Spain and can provide additional protections for employees.
- Non-compliance with labor laws and regulations can result in fines, penalties, or legal action.
Onboarding Process
The onboarding process typically involves the following steps:
- The employer provides the employee with an employment contract that outlines the terms and conditions of employment.
- The employee is required to submit certain documents, such as a valid ID card, social security number, and bank account information.
- The employer must register the employee with social security and other relevant government agencies.
- The employer must provide the employee with information about company policies, procedures, and benefits.
- The employee should be introduced to their colleagues and given a tour of the workplace.
While there are no specific laws in Spain that govern the onboarding process, best practices include providing a comprehensive orientation program, assigning a mentor or supervisor to help the employee adjust to their new role, and providing ongoing training and support.
Visa
Spain has several types of work permits and visas available:
- Work Visa for highly skilled workers
- Blue Card for highly qualified non-EU workers
- Temporary Residence and Work Permit for non-EU workers
- Student Visa for individuals studying in Spain who wish to work part-time
- Entrepreneur Visa for individuals who wish to start a business in Spain
Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services
Learn More
Minimum Wage
The current minimum wage in Spain as of 2023 is EUR 1,080.00 per month
Payroll Cycle
The payroll cycle in Spain is typically monthly and employees are paid once a month.
Annual Bonus
The employee gets 13th and 14th-month pay twice a year, in July and December. Collective agreements and employment contracts should have the details of the 13th as well as the 14th-month pay.
Health Benefits
Employees in Spain are required to provide certain health benefits to their employees, including:
- Public health insurance coverage through the Spanish National Health System (SNS)
- Access to private health insurance plans
- Sick leave and paid time off for medical reasons
- Workplace safety and accident insurance
Best practices for health benefits in Spain include offering additional benefits such as dental, vision, and mental health coverage.
Working Hours and Overtime
- Work hours: In Spain, the maximum working hours per week are 40 hours.
- Break: Employees are entitled to a minimum of 30 minutes of uninterrupted rest for every 6 hours of work.
- Overtime: Employees may be required to work overtime in certain situations, such as during peak hours or emergencies. Overtime work is generally compensated at a higher rate than regular hours, with a maximum limit of 80 hours a year.
Leaves
Sick Leaves
- Employees can take a sick leave of 365 days, in case they have paid social security for 180 days in the past 5 years.
- 0-3 days - unpaid
- 4-15 days - employee receives 60% salary which is paid by their employer
- 16 - 20 days - employee receives 60% of salary paid through social security
- 21 to 30 days - employee receives 75% of salary paid by social security
- 30 to 365 days - employee receives 100%, 25% paid by the employer, 75% by social security
Parental leaves
- 16 weeks of unpaid maternity leave for pregnant employees, which may be extended to 18 weeks in certain situations.
- Maternity leave consists of two periods - compulsory leave for the first 6 weeks after birth, followed by the remaining leave for the additional 10 weeks of 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 employee receives 100% salary during maternity leave, paid by social security.
- Fathers are entitled to 16 days of paid paternity leave. The employee receives 100% of their pay during leave, which is paid by the Spanish government.
- Same-sex couples are also eligible for paternity and maternity leaves.
Annual leaves
- Employees in Spain are entitled to a minimum of 30 days of annual leave per year by the employer.
Public Holidays (for the Calendar year 2023)
- Epiphany: January 6th
- Good Friday: April 7th
- Labor Day: May 1st
- Assumption Day: August 15th
- National Day of Spain: October 12th
- All Saints' Day: November 1st
- Constitution Day: December 6th
- Immaculate Conception: December 8th
- Christmas Day: December 25th
If you structure your global talent acquisition strategy well, you will definitely enhance your talent quality and availability through a distributed workforce. Tarmack offers end to end recruiting services to help you achieve this.
Schedule Consultation
Taxes for Employers
In Spain, employers are required to pay a variety of taxes, including:
- Social Security contributions: 31.55%
- Unemployment tax: 5.50% (permanent employees), 6.70% temporary employees)
- Salary Guarantee Fund: 0.20%
- Professional disease and occupational accident contribution: 1.65%
- Common Contingencies: 23.60%
- Professional training: 0.60%
Did you know that as a part of the Employer of Record service, Tarmack offers global payroll across 100+ countries? Not just that, we even offer this global payroll service on a standalone basis. So if you're looking for a payroll provider for one or more countries, you're at the right place.
Learn More
Taxes for Employees
Employees are subject to a variety of taxes in Spain, including:
- Social Security contributions: 6.35%
- Unemployment tax: 1.55%
- Professional training: 0.1%
- Income tax: Employees are required to pay income tax on their earnings. The amount of tax owed is based on a progressive tax rate system that ranges from 19% to 47%.
- 0.00 EUR-12,450.00 EUR: 19%
- 12,451.00 EUR-20,200 EUR: 24%
- 20,201.00-35,200 EUR: 30%
- 35,201.00 EUR-60,000 EUR: 37%
- 60,000.00 EUR-300,000.00 EUR: 45%
- 300,000.00 EUR and over 47%
Probation
The probation period for a new employee is typically two months in Spain. It can be extended up to 6 months for seniority employees and graduate technicians.
Ready to convert your contractor to a full time employee?
Every now and then, that contractor you hired does such a good job that you want to hire them as a full time employee. Convert such contractors into your full time employees by using Tarmack's Employer of Record service. Doesn't matter where the contractor is. Our service covers 150+ countries around the globe!
Talk To Us
Termination
An employer may terminate an employee's contract in Spain for a variety of reasons, including:
- Mutual agreement between the employer and employee to terminate the contract.
- Expiration of a fixed-term contract.
- Termination for disciplinary reasons, such as misconduct or poor performance.
- Termination due to economic or organizational reasons, such as restructuring or downsizing.
- Termination due to medical reasons or disability.
Severance Pay
Employees who are terminated due to economic or organizational reasons may be entitled to receive severance pay. 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 in Spain.
Employees or Contractors
Misclassifying employees as contractors, or vice versa, can result in significant legal and financial penalties for employers in Spain.
- If an employer incorrectly classifies an employee as a contractor, the employee may not be entitled to certain employment benefits and protections that contractors do not receive.
- Similarly, if an employer incorrectly classifies a contractor as an employee, the employer may be required to pay social security contributions and other benefits that are normally provided to employees.
Final Words
Spain has a well-established set of employment norms and regulations that aim to protect workers' rights and ensure fair treatment. The country offers a range of employment opportunities, and foreign workers may apply for various types of visas or work permits to work legally in Spain. Employers must comply with all relevant laws and regulations related to employment, taxation, and social security.
Explore Hiring & Payroll In Other Countries
Hiring & Payroll in United StatesHiring & Payroll in SingaporeHiring & Payroll in IsraelHiring & Payroll in PortugalHiring & Payroll in LatviaHiring & Payroll in CanadaHiring & Payroll in FinlandHiring & Payroll in United Arab EmiratesHiring & Payroll in MaltaHiring & Payroll in ChileHiring & Payroll in AustraliaHiring & Payroll in New ZealandHiring & Payroll in QatarHiring & Payroll in GreeceHiring & Payroll in MalaysiaHiring & Payroll in GermanyHiring & Payroll in IrelandHiring & Payroll in Saudi ArabiaHiring & Payroll in EstoniaHiring & Payroll in South AfricaHiring & Payroll in United KingdomHiring & Payroll in LuxembourgHiring & Payroll in Hong KongHiring & Payroll in Czech RepublicHiring & Payroll in BrazilHiring & Payroll in SwitzerlandHiring & Payroll in FranceHiring & Payroll in TaiwanHiring & Payroll in PolandHiring & Payroll in MexicoHiring & Payroll in SwedenHiring & Payroll in BelgiumHiring & Payroll in PhilippinesHiring & Payroll in ArgentinaHiring & Payroll in NorwayHiring & Payroll in AustriaHiring & Payroll in CyprusHiring & Payroll in HungaryHiring & Payroll in ThailandHiring & Payroll in DenmarkHiring & Payroll in JapanHiring & Payroll in SlovakiaHiring & Payroll in ChinaHiring & Payroll in NetherlandsHiring & Payroll in South KoreaHiring & Payroll in ItalyHiring & Payroll in LithuaniaHiring & Payroll in India
+ 38 moreA truly global HR platform with everything you need to build, grow & manage a global team.
- Identifying & recruiting the best talent
- Payroll with full compliance across 100+ countries
- Employment agreements as per local laws
- Contractor invoices & time management
- Smooth remote onboarding of employees
- Immigration & mobility services around the world
Hold up! Please tell us how to contact you and we'll get in touch with you, most likely within an hour.
Copyright © 2024 Tarmack Inc. All rights reserved.
Social Security