Overview

Capital
Madrid
Currency
Euro (EUR)
Date Format
dd/mm/yyyy

Contributions

Employer

Employer Payroll Contributions

23.60%
Social Security
5.50% (General Type)
Unemployment
0.20%
Salary Guarantee Fund
0.60%
Professional Training
29.90% Total Employment Cost
Employee

Employee Payroll Contributions

4.70%
Social Security
1.55% (General Type)
Unemployment
0.10%
Professional Training
6.40% Total Employee Cost

Employee Income Tax

19.00%
0.00 EUR-12,450.00 EUR
24.00% + 2,365.50 EUR
12,450.00 EUR-20,200 EUR
30.00% + 4,225.50 EUR
20,201.00-35,200 EUR
37.00% + 8,725.50 EUR
35,200.00 EUR-60,000 EUR
45.00% + 17,901.50 EUR
60,000.00 EUR-300,000.00 EUR
47.00% + remainder
300,000.00 EUR and over
Employer Taxes
3 HIGHEST
3 LOWEST
Mexico
China
South Korea
Spain
South Africa
Georgia
Macedonia
43.72%
40.92%
34.84%
29.9%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Spain
Belarus
Ukraine
Cambodia
35%
28%
27.65%
6.4%
1%
0.6%
0%

Minimum Wage

General

The monthly minimum wage is 950.00 EUR for full-time employees or 7.04 EUR per hour.

Minimum wage (per month)
$4000
$2663
$2518
$1120
$36.80
$17.24
$2.33
Geneva
Luxembourg
Australia
Spain
Angola
Tanzania
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

The payroll cycle is monthly, and employees must be paid by the last day of the month.

13th Salary

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 include 13th and 14th salaries.

Working Hours

General

Working hours vary depending on collective bargaining agreements, however, the maximum is 40 hours per week.

Overtime

Overtime policy is usually covered by collective agreements, however, cannot exceed 80 hours per year. 

Overtime can be compensated by paying higher amount than the employee salary or by replacing the hours with an equivalent paid rest period. 

Leave

Paid Time Off

Employees are entitled to 30 calendar days (22 business days) of paid annual leave.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Brazil
Tanzania
Spain
Michigan
China
Federal
30
14
44
30
13
43
28
15
43
30
14
44
2
11
13
5
7
12
10
10
Public Holidays

There are 14 public holidays and varies between regions.

Sick Days

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.
  • The employee will be entitled to 75% of the contribution base of the previous month’s salary when injured at work. It is paid by the employer, who can then deduct the amount from the social security mandatory payment.

Safety and risk prevention training  

  • All employees must complete online training.
  • After the first certification, a refresher course will be required every 4/5 years.

 Annual medical checkup

  • All employees are required to have an annual medical checkup.

Failure to follow the above rules will:

  • Risk incurring a fine per employee covered by the employer
  • 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.
Maternity Leave

Mothers are entitled to 16 weeks of maternity leave. For the birth of twins, 18 weeks’ leave is granted and for triplets, the entitlement is 20 weeks. 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 4,070.00 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.

PAID MATERNITY LEAVE (DAYS)
413
410
365
112
40
30
0
Norway
Bulgaria
Serbia
Spain
Malawi
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

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.

Parental Leave

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.

Other Leave

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 a 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.  

Termination

Termination Process

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.

For dismissal initiated by the employer:

  • Disciplinarythere 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.
  • For objective reasonsthe 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. 

 

Notice Period

Employers should provide 15 days of notice, and if notice isn’t given, payment in lieu shall be given.

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.

Probation Period

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.

VISA

VISA

In Spain, the long stay visa allows one to remain in Spain for more than 90 days. In the case of an individual seeking the ability to work, a residence visa may be applied for.

To apply, the applicant must submit a completed application, application fee.  In addition, Spain requires a list of documents that must be submitted, including:

  • Passport
  • Signed employment contract
  • Proof of no criminal record
  • Medical certificate

Once all documents are submitted, it generally takes up to 4 weeks to get an answer. European Union citizens and citizens from Iceland, Liechtenstein, Norway, and Switzerland are exempt.

EU Blue Card: The EU Blue Card is for non-European Union citizens who are highly skilled workers with higher education degrees and allows the holder to work in any EU country. The applicant must have a job offer that’s duration is at least 1 year and must be offered earnings over a certain threshold. The EU Blue Card provides both residence and work permit valid for 2 years.

The EU Blue Card applies to all EU member states with exception to Denmark and Ireland.

VAT

General

21% VAT is the standard rate.

Version History

January 1, 2021
Paternity leave has increased from 12 to 16 weeks.

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    Questions & Answers

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    Sofía M.
    Sofía M.
    9 months ago

    Hi, can unused leave be paid out to the employee? TIA.

    Emily Kuhnert
    Admin
    9 months ago
    Reply to  Sofía M.

    Hi Sofia, thank you for your question. Vacation days expire on the last day of each year. Unless stated in an employment contract or collective bargaining agreement,
    employees are not entitled for leave to be paid out and cannot be carried over to the following year.

    Marco
    Marco
    8 months ago

    Hi, can the “Régimen especial” (the Beckham law) be applied to a contract managed by Papayaglobal?

    Erez Greenberg
    Admin
    8 months ago
    Reply to  Marco

    Hi Marco, We can apply the special tax regime available for ex-pats, aka “Beckham law”, as long as the worker was granted with that tax regime by the tax agency. The tax rate is flat 24%.

    The worker will need to provide us with a copy of the letter issued by the “Hacienda” (tax agency).

    Foster
    Foster
    4 months ago

    For a German located company/Start Up, What is the price for your “Global EOR” package to hire someone in Spain?

    Alex Margolin
    Admin
    4 months ago
    Reply to  Foster

    Hi Foster, thanks for reaching out. Kindly book a demo here https://papayaglobal.com/schedule-a-demo/ and someone will reach out to you so we can understand exactly what you need.

    Meredith
    Meredith
    2 months ago

    Hello! What’s are the typical benefits along with terms of agreement for a 6 month contract?

    Emily Kuhnert
    Admin
    2 months ago
    Reply to  Meredith

    Hi Meredith, thank you for your question. We typically do not offer any in-kind benefit recommendations. However, in general, food allowance is something that is common in Spain.

    Emma
    Emma
    2 months ago

    Hello,
    If I submit my resignation in January do I get compensated for 13th,14th salary and the unused holiday of the same year?
    Thanks,

    Emily Kuhnert
    Admin
    2 months ago
    Reply to  Emma

    Hi Emma, thank you for your question. You would be entitled to be paid out for any unused paid holiday. However, for the 13th and 14th salary, you would not be entitled to as you would already have been paid out the previous year. You would most likely be entitled to a prorated amount which would depend on when your last day of employment is.

    See how Papaya Global can help you automate your global payroll or PEO whilst staying 100% compliant with local labor laws