Spain

Employment

Employment of record services is a common way to employee employees in Spain Labor-management relations Employees and employers establish working and production conditions via collective bargaining agreements, with terms agreed by both parties.
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Generally, as long as employees and employers do not denounce a collective bargaining agreement, it will be extended each year. Collective bargaining agreements may be company agreements or general industry agreements.

Payroll

Pay Frequency usually on a monthly basis, for work between the first and last day of the month.
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Payday is commonly the last day of the month.

HR & Labor

Working Hours: The legal workweek is 40 hours, although many companies have reduced working hours to 37 or 38. The Workers Statute maintains a 40-hour legal work week but permits total hours to be distributed irregularly over the year if such an arrangement is part of a collective bargaining agreement. Each employee worker has the statutory right to a block of one-and-a-half days off a week (two days a week for workers younger than age 18).
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The Workers Statute allows employees and employers to negotiate blocks of three days off over a fortnight. The Workers Statute also allows employees and employers to negotiate extensions to the statutory nine-hour day if a 12-hour rest period is maintained in between shifts. Employees younger than age 18 may not legally work for more than eight hours per day, including training; employers using apprenticeship contracts should take this limit into account. Overtime regulations are dictated by national law and collective bargaining agreements. There is a statutory annual maximum of 80 hours of overtime per employee.

Immigration

Nationals of EEA member states (comprised of the EU, Iceland, Liechtenstein and Norway) and Switzerland do not need permits to work in Spain, but EEA/Swiss nationals who will reside for more than three months in Spain must register in the Foreigners Central Register. While EEA and Swiss nationals enjoy similar rights, the treatment of Swiss nationals is established under a series of bilateral agreements rather than the EEA Agreement.
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Non-EEA employees must apply to the Ministry of Labor and Social Affairs for work permits. All permits are renewable. Foreigners with a Spanish relative, workers necessary to install foreign imported machinery, top executives and others receive preferential treatment. The period of validity is different depending on the type of each work permit. Under Spain’s labor laws, foreigners legally working in Spain enjoy the same rights and obligations as Spaniards.

Benefits

Unemployment benefits are taxable, as is “irregular” income such as severance pay, sick leave pay and other income earned over a period exceeding two years (including share options and receipts from life insurance policies collected as lump sums). In the case of stock options plans, a 40% reduction in the taxable base can be applied to an amount not exceeding the result of multiplying the annual average salary by the number of years over which the income will be generated (at least two and not more than five).
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Large enterprises offer a variety of special employee benefits, not all of which are mandatory, such as housing, lunches, nurseries, recreational facilities, medical insurances, life insurances, pension plans, low-cost loans, training courses and transport. Firms with more than 100 workers must provide medical services

Minimum Wage

The minimum wage is 756 EUR.

Public Holidays

In Spain there are 14 national public holidays. There are also numerous regional bank holidays.

July 28: Day of Cantabria (Regional Holiday)
August 15: Assumption Day
September 1: Aid El Bebir (Regional Holiday)
September 2: Ceuta Day (Regional Holiday)
September 8: Day of Asturias (Regional Holiday)
September 11: Catalonia (Regional Holiday)
September 15: Lady of Aparecida (Regional Holiday)
October 9: Valencian Community Day (Regional Holiday)
October 12: Hispanic Day
November 1: All Saints Day
November 9: Our Lady of the Almudena (Regional Holiday)
December 3: Feast of St. Francis Xavier (Regional Holiday)
December 6: Constitution Day
December 8: Immaculate Conception Day
December 25: Christmas Day
December 26: St Stephens Day (Regional Holiday)

January 1: New Years Day
January 6: Epiphany
February 28: Andalucia Day (Regional Holiday)
March 1: Balearic Islands (Regional Holiday)
March 19: St Josephs Day (Regional Holiday)
March 29: Maundy Thursday
March 30: Good Friday
April 2: Easter Monday
April 23: Aragon Regional Holiday
May 1: Labor Day
May 2: Madrid Regional Holiday
May 15: Feast of St Isidro (Regional Holiday)
May 17: Galician Literature Day (Regional Holiday)
May 30: Canary Islands (Regional Holiday)
May 31: Castilla-La Manchua (Regional Holiday)
June 9: La Rioja (Regional Holiday)
June 13: Feast of St Anthony (Regional Holiday)
July 25: St James Day (Regional Holiday)
July 28: Day of Cantabria Institutions (Regional Holiday)
August 6: Our Lady of Africa (Regional Holiday)
August 15: Assumption Day
August 22: Aid El Kebir (Regional Holiday)
September 2: Ceuta Day (Regional Holiday)
September 8: Day of Extremadura
September 11: National Day of Catalonia (Regional Holiday)
September 15: Cantabria (Regional Holiday)
September 17: Day of Melilla (Regional Holiday)
October 9: Valencian Community day (Regional Holiday)
October 12: Fiesta Nacional de Espana
November 1: All Saints Day
December 3: Feast of St Francis Xavier (Regional Holiday)
December 6: Constitution Day
December 8: Immaculate Conception Day
December 25: Christmas Day
December 26: St Stephen's Day

Pension Fund

The employer contributes 23.6% of employee’s regular wages.

The employee contributes 4.7% of regular wages.

Severance Pay

Employers should pay 20 days of salary pay per year of service up to 12 months.
If the dismissal is declared unfair (a dismissal without cause) by a judge, the employer may reinstate the employee or pay a statutory severance payment.

Employees affected by a redundancy will be entitled to receive a legal severance payment and an advance notice in writing of the termination of the contract. A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

Advance Notice

No official notice period required.

Termination Procedure

Employees dismissed on disciplinary grounds are not required to receive notice of dismissal. In cases of redundancy, dismissal can be on grounds of economic, organizational, technical or productive reasons. Employees affected by this type of dismissal will be entitled to receive a legal severance payment equivalent to 20 days' salary for each year of service in the company (up to a maximum of 12 months' salary), with 30 days of salary for the 1st year of work. However, if the dismissal is made on disciplinary grounds and a court of law subsequently rules that the dismissal is unfair the severance payment is equivalent to 33 days of salary per year worked.

Sick Days

Employees are entitled to a maximum of 18 months’ sick leave in cases of illness or injury. Once the 18-month period has expired, employees can be designated as permanently ill and claim a social security pension. Employees receive social security payments during the sick leave period.The amount of social security payment paid by the employer during sick leave caries depending on the employees' salary and position.

Vacation Days

Employees entitled to at least 22 working days (after continuously employment of one year). The employee is entitled to their salary during their vacation leave.

Parental Leave

Maternity leave can be taken at a maximum of 16 weeks immediately after birth. Employees on Maternity leave receive social security payments during the leave period equal to 100% of the mothers average monthly salary.

The general rule is that the father of a newly born child can take up to two working days paid absence immediately after birth. Fathers are also entitled to 13 additional days of paternity leave paid by social security.

Employees have the right of leave up to three years to attend to the care of each child, whether natural, adopted or being fostered permanently or as pre-adoptive measures.

Females workers have the right to one hour of absence from work each day to breastfeed an infant of less than nine months. This can be divided into two half-hour periods.

Expat Benefits

Some companies offer expats relocation, accommodation and expatriate family benefits. The types of benefits vary from company to company. The expats are entitled to a flat tax of 24%. An employee is considered an expat if in the past 10 years prior to their current employment they haven’t been a resident in Spain. They must have a legal employment contract with a Spanish company or with a company who has a legal branch in Spain.

Additional Employee Withholdings

There is a salary ceiling of 3,642 EUR, any amount of gross salary above it is exempt from social security tax.

1. Unemployment Fund- Employer contributes 5.5%.
2. Insolvency- Employer contributes 0.2%.
3. Professional Training Fund- Employer contributes 0.6%
4. Working Accidents Insurance - Employer contributes 1.65%.

1. Unemployment Fund- Employee contributes 1.5%
2. Insolvency- Employee contributes 0%
3. Professional Training Fund- Employee contributes 0.1%
4. Working Accidents Insurance - Employee contributes 0%

VAT

No standard VAT