Capital Madrid

Currency Euro (€) (EUR)

Date Format dd/mm/yyyy (ce)

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Employer 29.90% - Social Security

Employee 19.00% - 0-12,450
24.00% - 12,451-20,200
30.00% - 20,201-35,200
37.00% - 35,201-60,000
45.00% - 60,000 and above


Termination Process 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. Termination notice must be provided in writing, and the notice period is agreed upon in employment contract.

Advance Notice 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.

Mandatory Benefits

Pension Fund Employers contribute 23.6% of workers wages, employees contribute 4.7%.

Social Security Employers contribute 29.9% and employees contribute 6.35%.

Minimum Wage

General Minimum monthly wage is 900€

Working Hours

General Fulltime employment is considered 40 hours weekly, and 9 daily hours (maximum unless agreed otherwise). *Workers are entitled to a weekly rest period of 1.5 consecutive days.

Overtime Overtime may not exceed 80 hours annually.


General 21% standard rate.


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