Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The monthly minimum wage is 950 EUR for full-time employees or 7.04 EUR per hour.
Employees are paid monthly by the last day of the month.
13th and 14th salaries are mandatory in Spain and are usually pro-rated over 12 payments, however, it varies depending on the company’s collective agreement. Many collective agreements do include 13th and 14th salaries.
Full-time employment is considered 40 hours weekly, and 8 hours daily.
Overtime policy is usually covered by Collective Agreements. The guidelines set out by law are that overtime hours should not exceed 80 hours per year.
Overtime can be compensated by paying a higher amount than the employee salary or by replacing the hours with an equivalent paid rest period.
Paid time off is at least 30 calendar days.
Employees are entitled to an uninterrupted rest period of at least one and a half days per week. As a general rule, this must include Sunday.
Each province in Spain has a different number of public holidays, but do not exceed 14 in total. Out of these 14, there are 9 national holidays.
Sick leave is as follows:
- The first 3 days of sick leave are unpaid.
- From the 4th to the 15th day, the employee is entitled to 60% of the contribution base of the previous month and is paid by the employer.
- From the 16th to the 20th day, the employee is entitled to 60% of the contribution base of the previous month and is paid by the employer, who can then deduct the amount from the social security mandatory payment.
- From the 21st day onwards, the employee is entitled to 75% of the contribution base of the previous month and is paid by the employer, who can then deduct the amount from the social security mandatory payment.
- Employees can take sick leave for up to one year and under unique circumstances could extend it to 180 days.
- When the employee is injured at work- The employee will be entitled to 75% of the contribution base of the previous month’s salary. It is paid by the employer, who can then deduct the amount from the social security mandatory payment.
Safety and risk prevention training
a. All employees must complete online training (main topics: exposure to occupational risks, the proper environment at the workplace, ergonomics and other good practices, etc).
b. After the first certification, a refresher course will be required every 4/5 years.
c. All training costs will be endured by Baldock
2. Annual medical checkup
a. All employees are required to have an annual medical checkup. Each employee will be able to schedule the medical appointment from across hundreds of locations in Spain; contact information for each of these locations is available on the provider’s website.
b. Each medical checkup will cost €50, and must be covered by the employer. So these costs will be included in our invoice when applicable (if further consultation or procedures are needed, this may incur additional costs).
- As this is a strict legal requirement, there are no exemptions and failure to follow the above rules will:
- Risk incurring a €4,000 fine per employee covered by the employer and when applicable included in our invoice
- Jeopardize the employee’s insurance coverage in the event of a labor accident or a professional disease
- Lead to potential loss of the employee’s rights to social payments applicable under sick leave in case of a labor accident or a professional disease.
Mothers are entitled to 16 weeks’ maternity leave. The leave can begin up to 4 weeks before the expected due date and at least 6 weeks must be taken immediately after the birth of the child.
During maternity leave, the employee is not paid their salary, but rather, a maternity benefit. The maternity benefit is calculated based on the previous month’s contribution (including monthly salary and the proportional part of the extra pay) and is paid by social security.
The maternity benefit is capped at 4,070 EUR per month. If the employee’s salary is generally higher than this amount, the employer can decide to pay the difference, however, this is not mandatory.
Fathers are entitled to 16 weeks of paid paternity leave. The first 6 weeks must be taken immediately after the birth of the child. leave can be extended by two weeks in the case of multiple births. All 16 weeks are 100% paid by the state.
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.
January 1, 2020, leave will be extended to 16 weeks, the first 6 without interruption. Neither of the parents may will be able to transfer this right to the other.
Adoption Leave: 6 weeks compulsory and uninterrupted leave for both partners. 16 unpaid weeks in total can be shared between both parents. A maximum of 10 weeks can be taken by one with the remaining 6 weeks being taken by the partner.
Marriage: 15 calendar days
Serious illness or injury of family member: 2 days (4 days if travel is required).
Bereavement: 2 days (4 days if travel is required) for the death of a family member.
Moving: 1 day for moving to a new house.
The end of a temporary contract – the worker is given notice as established in the collective agreement/employment contract. The employee is entitled to the proportional part of extra pay and holidays as well as the compensation of 12 days’ salary per year worked.
Voluntary termination by the employee – the employee must give notice to the company with the notice established in the collective agreement. On their last day the company will pay the amounts corresponding to the payroll and termination.
a) Disciplinary–there is no notice and the final payroll is paid on the day of dismissal, without compensation, delivering the letter with the reasons for which the dismissal is made.
b) For objective reasons–the amount corresponding to 20 days of salary for each year worked is paid to the worker 15 days before the end date including a letter with the reasons for the dismissal.
Employers should provide 15 days of notice, and if notice isn’t given, payment in lieu shall be given.
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.
It varies depending on the Collective Agreement in place at the company. The common practice is two months, graduate technicians are usually for a 6 month period.
21% VAT is the standard rate.