Payroll and Benefits Guide - Spain

Spain
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Currency

Euro (EUR)
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Capital

Madrid
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Employer Taxes

29.90%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Spain has a constitutional monarchy, and King Felipe VI is the current monarch.

Spain is famous for its delicious cuisine, including paella, tapas, churros, and sangria.

The Prado Museum in Madrid houses one of the world’s finest collections of European art.

Spain is the second-most visited country in the world.

Spain has won the FIFA World Cup in football once, in 2010.

Flamenco is a traditional Spanish dance form.

Spain

Contributions

Employee Payroll Tax

Contribution TypeRate
Social Security4.70%
Unemployment/td>1.55%
Professional Training0.10%

Employer Payroll Tax

Contribution TypeRate
Social Security23.60%
Unemployment/td>5.50%
Salary Guarantee Fund/td>0.20%
Professional Training0.60%

Payroll

Payroll Cycle

The payroll cycles are monthly and are typically paid on the last day of the month.

13th Salary

13th and 14th-month salary payments are mandatory in Spain.

It is common practice for the annual salary to be split into 14 instalments to account for the double salary payment, which the employer will pay in July and December; this is stipulated in the employee’s employment contract and collective agreements.

Work Hours and Week

The standard working week in Spain can be no longer than 40 hours a week. The typical Spanish working day is from around 8.30-9.00 am until approximately 2.00 pm and then closes for siesta, the operating hours will resume from 4.00-5.00 pm until around 8.00 pm.

Overtime

If work time limits of 40 hours a week are surpassed, compensation of overtime is compulsory. The maximum number of overtime hours a single employee can work is 80 additional hours per year. Overtime work hours and payments are strictly regulated following collective agreements.
Spain

Leave

Paid Time Off

Employees in Spain are entitled to 30 calendar days (22 business days) of paid annual leave in a given year. (Some collective agreements may grant other specific entitlements)

Public Holidays

There are 10 public/national holidays and others vary between regions.

Sick Days

In case of illness or personal accident, the employee is entitled to temporary disability benefits for sick pay, receiving at least 60% of their regular salary.

In the case of a common disease or non-work-related injury, employees in Spain are entitled to the following:

  • 1-3 days (3 days) = 0% (No obligation to pay unless the employer agrees to make the payment, or it is stated in the CBA.)
  • 4 – 15 days (12 days) = 60% (60% of the employee contributions base paid by the employer.)
  • 16 –20 days (5 days) = 60% paid by Social Security (60% of the employee contributions base paid by social security even if the employer makes the payment on behalf of the social security.)
  • 21 days + = 75% paid by Social Security (75% of the employee contributions base paid by social security even if the employer makes the payment on behalf of the social security.)

The above is applicable unless the specific CBA states another option or a different company policy.

Maternity Leave

A pregnant employee is entitled to 16 weeks of unpaid maternity leave, with the potential to increase to 18 weeks in the event of a complicated delivery or for multiple births.

The 16 weeks of maternity leave consists of two periods:

  • Compulsory leave for the first 6 weeks after the birth
  • Remaining leave for the additional 10 weeks of a full absence or 20 weeks of half-day absences, which may be taken any time up to one year later (with 15 days’ notice).

The maternity pay is managed and paid by the Social Security System Health Insurance Fund. The Social security benefits are paid to employees on maternity leave calculated as a monthly benefit equal to 100% of the mother’s base rate ( NIable base from the previous month to the leave start).

All pregnant women are entitled to healthcare before, during and after birth, and need to visit the healthcare center, with their Sistema Nacional de Salud (National Health Service) user’s card to receive them.

Paternity Leave

The father is entitled to 16 days of paid paternity leave (extended to 18 weeks for multiple births). In same-sex couples, both parents are entitled to paid leave. One needs to apply for paternity leave and benefits, and the other for maternity leave and benefits, however, in order to qualify for paid benefits, it is essential that each parent has the correct legal association with the child.

100% of the paternity pay will be paid by the Spanish Government, as long as the father has correctly paid social security contributions for a minimum of 180 working days within the past 7 years or 360 total days in his entire professional life. The employer is still liable for certain taxes that pertain to the salary payments.

Parental Leave

For the birth of a child, adoption, foster care, or general care until the kid turns eight, parents are entitled to four months of paid leave.

The employee’s employment must have lasted at least 12 months in a row for them to be eligible.

Termination

Termination Process

The termination process varies according to the Employment Agreement and Collective Agreement in place and is based on the type of contract and reason for termination.

Notice Period

Notice periods in Spain are generally set at 15 days notice, if notice isn’t given, employers can give payment in exchange.

Severance Pay

Severance pay is only applicable when an employer terminated an employment agreement without notice (in this case, the severance pay would be for the same amount the employee would earn if they had been given notice).

Probation Period

Probation Period

Probation or trial periods are generally set within the collective agreements. However, a common practice in Spain is two months, extending to 6 months for graduate technicians/seniority employees.

Immigration

A Work Visa allows foreigners to enter, stay, and work in Spain. An employee must apply for the work visa in person, and applications must have been submitted at least 90 days before travel.

If the position is to fill a highly skilled role or the candidate is a non-EU citizen, employers need to apply for a work visa from the Ministry of Labour prior to appointment. The Embassy or Consulate will then issue the work and residence visa after the Ministry of Labour has approved the application.

In Spain, there is a specific Work Visa for seasonal workers, but obtaining a visa is the same. However, seasonal workers must prove that they have accommodations arranged, travel costs are taken care of, and that they will be returning to their respective country once the job has been completed.

VAT

The standard VAT rate in Spain is 21%.