Employer of Record in Spain

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Effortless hiring in

Spain

Spain is a country of vibrant culture, known for flamenco dancing, bullfighting, and siestas. It is home to iconic landmarks like the Sagrada Familia in Barcelona, the Alhambra in Granada, and the bustling streets of Madrid. Spanish cuisine, including tapas, paella, and churros, is celebrated worldwide. The country has a deep artistic legacy, with luminaries such as Pablo Picasso and Salvador Dalí hailing from Spain. Its diverse landscapes, from the beaches of Costa del Sol to the peaks of the Pyrenees, make it a favorite tourist destination.

Languages

Spanish, Catalan, Galician, regional languages

Population

47.5 Million

Capital City

Madrid

Currency

Euro (EUR)

Cost of living ranking

40th

VAT (Value Added Tax)

21%

Hiring in

Spain

Employment Laws

Spain's labor legislation is comprehensive, providing substantial protection to employees. Key laws include:
Workers' Statute (Estatuto de los Trabajadores): Governs individual and collective labor relations.
Minimum Wage Act (Mindestlohngesetz): Establishes the statutory minimum wage.
Health and Safety Regulations: Ensure safe working conditions.

Onboarding Process

Employers are required to provide a written employment contract that outlines essential terms such as:

Job description.
Remuneration.
Working hours.
Notice periods.

While verbal agreements are legally binding, written contracts are strongly recommended to prevent disputes.

Types of Employment Contracts

Indefinite Contracts: Employment without a predetermined end date.
Fixed-Term Contracts: Employment for a specified period or project.
Part-Time Contracts: Employment with reduced working hours compared to full-time positions.
Temporary Contracts: Short-term employment, often through agencies.

Payroll Management in

Spain

Payroll Frequency

Employees are typically paid monthly, with payments usually made at the end of each month.

Minimum Wage

As of 2022, the minimum wage in Spain for a full-time job is €7.82 per hour, equating to approximately €1,166.67 gross per month.

Payroll Deductions

Income Tax: Progressive tax rates ranging from 19% to 47%, depending on income levels.
Social Security Contributions: Both employers and employees contribute to social security, covering benefits like healthcare, pensions, and unemployment insurance.

Taxation in

Spain

Employee Income Tax

Spain employs a progressive income tax system with rates ranging from 19% to 47%, based on income brackets.

Employer Contributions

Employers contribute approximately 30.4% of the employee's gross salary to the social security system.

Leave in

Spain

Types of Leave in Spain

Annual Leave

Employees are entitled to a minimum of 30 calendar days of paid annual leave per year.

Parental Leave

Maternity Leave: Female employees are entitled to 16 weeks of paid leave at 100% of their full pay, funded by the social security system.
Paternity Leave: Male employees are also entitled to 16 weeks of paid leave under the same conditions as maternity leave.

Sick Leave

Employees must obtain a medical certificate if unable to work due to sickness. The employer covers full salary during the first three days; from the fourth day onward, social security provides payment.

Public Holidays Spain observes several public holidays that vary by region. Common holidays include New Year's Day, Good Friday, and Christmas Day.

Benefits in

Spain

Mandatory Benefits

Social Security: Coverage includes healthcare, pensions, unemployment benefits, and parental leave funded through employer and employee contributions.
Additional Payments: Employees are entitled to two extra payments per year (typically in July and December), each equivalent to one month's salary.

Supplemental Benefits

Employers may offer additional benefits such as private health insurance, meal vouchers, transportation allowances, and flexible working hours to attract and retain talent.

Termination in

Spain

Process

Termination must adhere to the Workers' Statute, requiring valid reasons for dismissal such as economic, organizational, or disciplinary grounds. Employers must follow fair procedures that include providing written notice and consulting with employee representatives if applicable.

Notice Period

For objective dismissals: A minimum of 15 days' notice is required.
For disciplinary dismissals: No notice period is required.

Severance Pay

For objective dismissals: Employees are entitled to severance pay equivalent to 20 days' salary per year of service, up to a maximum of 12 months' pay.
For unfair dismissals: Employees may be entitled to severance pay equivalent to 33 days' salary per year of service, up to a maximum of 24 months' pay.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

Employment Laws

Onboarding Process

Types of Employment Contracts

Payroll Frequency

Minimum Wage

Payroll Deductions

Employee Income Tax

Employer Contributions

Types of Leave in Spain

Mandatory Benefits

Supplemental Benefits

Process

Notice Period

Severance Pay

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