Spain

Available

Capital
Madrid
Currency
Euro
Language
Spanish
Population
47,519,628
GDP Growth
2.50%
GDP World Share
1.56%
Payroll Frequency
Monthly
Working Hours
40
hours/week

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

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.

Hiring can usually be completed within a few days, depending on the country and local requirements.

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.

MB Remote is the legal employer, but the employee works exclusively for you as part of your team.

We support hiring in multiple countries. Contact us to check availability for a specific location.

We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.

Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.