Spain
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See how hiring works in Spain
Learn about local payroll, taxes, and employment laws in Spain
Minimum Wage Standards
The minimum wage in Spain is EUR 1,134 per month, paid across 14 payments per year, equating to EUR 15,876 annually.
Spain's minimum wage (Salario Minimo Interprofesional - SMI) is set annually by the government in consultation with trade unions and employer organizations. The 14-payment structure includes 12 monthly payments plus two additional payments (typically in June and December).
Income Tax Structure
The individual income tax ranges from 19% to 47%. Income tax is calculated according to progressive rates. Additional regional surcharges may apply depending on the autonomous community of residence.
| Gross Annual Income | Personal Income Tax Rate |
|---|---|
| Up to EUR 12,450 | 19% |
| EUR 12,451 - 20,200 | 24% |
| EUR 20,201 - 35,200 | 30% |
| EUR 35,201 - 60,000 | 37% |
| EUR 60,001 - 300,000 | 45% |
| Over EUR 300,000 | 47% |
Employer Contributions
Total employer social security contributions amount to approximately 30% of the gross salary, calculated on the employee's total remuneration.
Mandatory Employer Contributions:
- Social Security (Common Contingencies): 23.60%
- Unemployment: 5.50%
- FOGASA (Wage Guarantee Fund): 0.20%
- Vocational Training: 0.60%
Employee Contributions:
- Social Security (Common Contingencies): 4.70%
- Unemployment: 1.55%
- Vocational Training: 0.10%
Total employee contribution is approximately 6.35% of gross salary.
Important Note: These figures are estimates for informational purposes. Actual costs vary based on employment terms and specific circumstances. Contact our team for accurate calculations tailored to your situation.
Overtime & Working Hours
Overtime is compensated at 175% of the regular hourly wage, or alternatively through equivalent compensatory time off. The maximum overtime allowed is 80 hours per year.
Standard working hours: 40 hours per week. The standard workweek typically runs Monday through Friday, with daily working hours not exceeding 9 hours unless otherwise agreed by collective bargaining.
Maternity Leave
Female employees are entitled to 16 weeks of maternity leave, paid at 100% of the regulatory base through the Social Security system.
The first 6 weeks after birth are mandatory and uninterrupted. The remaining 10 weeks can be taken continuously or in weekly periods within the first 12 months following the birth.
Paternity Leave
Since January 2021, fathers are entitled to 16 weeks of paternity leave, equal to maternity leave. This is paid at 100% of the regulatory base through the Social Security system.
The first 6 weeks must be taken immediately after birth and are mandatory and uninterrupted. The remaining 10 weeks can be taken in weekly periods within the first 12 months.
Sick Leave
Spain's sick leave system provides the following compensation structure:
- Days 1-3: Unpaid (no compensation)
- Days 4-20: 60% of the regulatory base, paid by the employer
- Day 21 onwards: 75% of the regulatory base, paid by Social Security
A medical certificate is required from the first day of absence. The maximum duration of sick leave is 365 days, extendable by an additional 180 days if recovery is expected.
Bereavement Leave
Employees are entitled to bereavement leave as follows:
- 2 days for the death of a spouse, child, parent, or close relative
- 4 days if travel to another province is required
Termination Framework
There is no at-will termination in Spain. Employers must have either an objective or disciplinary cause to terminate employment. Spanish labor law provides strong employee protections, and wrongful dismissals carry significant financial consequences.
Valid grounds for termination include:
- Objective causes: economic, technical, organizational, or production-related reasons
- Disciplinary causes: repeated unjustified absences, insubordination, breach of contractual good faith, decreased productivity, habitual intoxication
- Collective redundancy (ERE) for large-scale workforce reductions
Legal Requirement: For disciplinary dismissal, no notice or severance is required if the cause is proven. However, if deemed unfair (improcedente) by a court, the employer must pay severance or reinstate the employee.
Notice Period Requirements
For objective dismissals, the employer must provide 15 days of written notice. Failure to provide notice requires payment in lieu of the notice period.
- Objective dismissal: 15 days notice
- Disciplinary dismissal: No notice period required
- Employee resignation: As stipulated in the collective bargaining agreement (typically 15 days)
Severance Compensation
Severance pay in Spain depends on the type of dismissal:
- Objective dismissal (procedente): 20 days' salary per year of service, up to a maximum of 12 months' pay
- Unfair dismissal (improcedente): 33 days' salary per year of service, up to a maximum of 24 months' pay
For contracts signed before February 12, 2012, unfair dismissal severance is calculated at 45 days per year for the period prior to that date (capped at 42 months) and 33 days per year for the period after.
Risk Management: To minimize unforeseen financial exposure from terminations, our employer of record service includes a Severance Reserve for all employment agreements. Unused reserve amounts are returned to you if employees resign or are not entitled to severance.
Paid Annual Leave
Employees are entitled to a minimum of 22 working days (equivalent to 30 calendar days) of paid annual leave per year. This entitlement cannot be replaced by financial compensation except upon termination of the employment relationship.
Leave is typically taken during the summer months, though the specific timing is agreed between the employer and employee. Collective bargaining agreements may establish additional leave entitlements.
Public Holidays
Spain observes 14 official public holidays annually. These include national holidays set by the central government and regional holidays established by each autonomous community.
National public holidays include:
- New Year's Day (January 1)
- Epiphany (January 6)
- Good Friday (varies)
- Labour Day (May 1)
- Assumption of Mary (August 15)
- National Day of Spain (October 12)
- All Saints' Day (November 1)
- Constitution Day (December 6)
- Immaculate Conception (December 8)
- Christmas Day (December 25)
- Plus regional and local holidays to total 14 days
Onboarding Timeline
The onboarding process is typically completed within 2-5 business days following client execution of the Statement of Work.
Compensation Structure
Salaries in Spain are typically paid on a monthly basis. It is common practice for employees to receive 14 payments per year rather than 12, with the additional payments (known as "pagas extraordinarias") typically disbursed in June and December.
The 13th and 14th month payments are standard in most employment contracts and collective bargaining agreements. Some companies opt to prorate these extra payments across the 12 monthly pay periods.
Employment Contract Specifications
Written employment contracts are required in Spain and must be drafted in Spanish. Contracts can be either fixed-term or indefinite-term, though Spanish law strongly favors indefinite contracts.
Essential contract elements include:
- Employee and employer identification
- Commencement date
- Job title and description
- Compensation and benefits (including number of annual payments)
- Working hours and schedule
- Duration (for fixed-term contracts)
- Applicable collective bargaining agreement
- Termination provisions
Contracts must be registered with the Public Employment Service (SEPE) within 10 days of commencement. Fixed-term contracts are limited in duration and must have a justified cause under the 2022 labor reform.
Probationary Period
Probation periods in Spain vary based on the employee's qualification level:
- General employees: Maximum 2 months
- Qualified technicians (titulados): Maximum 6 months
During the probation period, either party may terminate the employment relationship without providing a specific reason and without notice or severance pay. The probation period must be agreed upon in writing in the employment contract.
How it works
Your Global Hiring Process
We take care of employing your team, so you can focus on growing
You choose the talent
You select the candidate you want to hire, anywhere in the world.
We employ them for you
MB Remote becomes the legal employer and handles contracts, payroll, and local labor laws.
Your team starts working
Your employee works directly with you, just like an in-house team member.
We manage compliance
We ensure ongoing payroll, taxes, and legal compliance in the employee’s country.
Frequently Asked Questions
These are the most commonly asked questions about the Employer of Record
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Is it free to contact MB Remote?
Yes. Contacting us is completely free and without obligation. We’ll discuss your needs and explain how our EOR solution works before anything else.
How long does it take to hire an employee?
Hiring can usually be completed within a few days, depending on the country and local requirements.
What is an Employer of Record (EOR)?
An Employer of Record is a legal entity that employs workers on your behalf. MB Remote handles contracts, payroll, taxes, and local labor law compliance, while you manage the day-to-day work.
Who is the legal employer of the employee?
MB Remote is the legal employer, but the employee works exclusively for you as part of your team.
In which countries can you hire employees?
We support hiring in multiple countries. Contact us to check availability for a specific location.
How does payroll work?
We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.
Is my company still in control of the employee?
Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.