Hire and pay employees in
Spain, hassle-free

The Minimum Wage is €1,262.28  per month as set out in the Deel collective bargaining agreement (CBA).

The individual income tax ranges from 19% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Monthly Costs

• Social Security Common Contingencies - 24.18%
• Unemployment Insurance - 5.50%
• Social Fund for the Guarantee of Salaries - 0.20%
• Temporary Diseases and Incapacity, Death and Survival Benefits - 1.50%
• Professional Training and Development - 0.60%
• Work From Home Allowance - €50
• Mandatory Disability Fund Contribution - €41
• 13th Salary - 1/12 of 1 month salary
• 14th Salary - 1/12 of 1 month salary

Social security costs are calculated up to a maximum salary for the contributions of €4,909.50 per month.

An additional solidarity social security contribution applies for salaries over €4,909.50 per month, with progressive rates ranging from 0.77% to 0.98%.

Annual and Conditional Costs

• Onboarding Mandatory PRL Training - €11
• Optional Onboarding and Bi-annual Medical Check - €80 (if requested by the employee)

Standard working hours are 8 hours per day, 40 hours per week (1800 hours per year). The standard workweek is from Monday to Friday.

Unless there is an agreement in place, employees can work no more than 9 hours per day. Employees can work a maximum of 80 hours a year in overtime.

Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 80 hours of overtime.

Maternity and Paternity leave in Spain is combined under Permiso de Nacimiento. Each parent can take up to 16 weeks off for Maternity / Paternity Leave. It is compulsory for both parents to take off the first 6 weeks after the birth of the child. 
The INSS (Instituto Nacional de la Seguridad Social) pays for the parental leave at 100% of the employees regular salary up to the maximum social security base of 4495.50€ per month, if the employee has applied for the benefit and been accepted. In order to be eligible employees must have contributed to Social Security for at least 6 months during the last 7 years.

Rules about breastfeeding hours:
Employees who are breastfeeding a child under the age of nine months shall be entitled to one hour of absence from work at a time of their choice, which may be divided into two periods, one at the beginning and the other at the end of the workday. This leave may be taken by either the mother or the father if both are working.
Employees may replace this right by a half-hour reduction of their working day for the same purpose, or alternatively, at the employee's discretion, by a paid leave of 15 calendar days following maternity leave.

Maternity and Paternity leave in Spain is combined under Permiso de Nacimiento. Each parent can take up to 16 weeks off for Maternity / Paternity Leave. It is compulsory for both parents to take off the first 6 weeks after the birth of the child.  The INSS (Instituto Nacional de la Seguridad Social) pays for the parental leave at 100% of the employee salary up to to 4,720.50 per month, if the employee has applied for the benefit and been accepted. In order to be eligible employees must have contributed to Social Security for at least 6 months during the last 7 years.

Employees are entitled to paid sick leave for up to 365 days if they have contributed to Social Security for 180 days in the last 5 years. Employees have the option to extend sick leave an additional 180 days. If the employee has not contributed to Social Security for 180 days in the last 5 years, the employee may be on medical leave without being paid.

The first 3 days are unpaid and considered as a qualifying period. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Spain can be complex. There is no at-will termination in Spain for employers outside the probation period and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job
• By the expiration of the contract

The minimum notice period is 15 days, though it may be longer in certain circumstances. During the probation period or for disciplinary terminations there is no notice period.

• Non-voluntary dismissal by an employer for non-disciplinary reasons: 20 days of salary per year of service. (proportional if less than <1 year)

Both full-time and part-time employees are entitled to 23 days of paid time off (PTO) a year. PTO accrues monthly 1.92 days per month. Employees are eligible for annual leave after 1 month of work.

Workers, with prior notice and justification, may be absent from work, with the right to remuneration, for any of the reasons and for the following time:
a) Fifteen calendar/natural days in case of marriage.
b) According to article 37.3.b of the Workers' Statute, «Two days for the birth of a child and for the death, accident or serious illness, hospitalization or surgical intervention without hospitalization that requires home rest, of relatives up to the second degree of consanguinity or affinity. When for this reason the worker needs to travel for this purpose, the term shall be four days».
c) Four days in cases of death of a spouse, parents or children, including possible displacements during this time.
d) One day for transfer of habitual residence (moving)

Public Holidays vary by region (municipality) in Spain. Each municipality is allowed to have 14 bank holidays per year. These include:

• 10 national public holidays set by the Spanish government
• 2 regional holidays set by the local government
• 2 municipal holidays set by the town hall

The 10 national public holidays in Spain are:

• New Year's Day
• Epiphany/Three King’s Day
• Good Friday
• Labor Day
• Assumption of our Lady
• Fiesta de la Hispanidad
• All Saints’ Day
• Spanish Constitution Day
• Immaculate Conception
• Christmas Day

Regional holidays vary. You can find additional information about regional holidays here.

Onboarding takes 3 business days. 

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

Contracts must include:

• Name and surname
• Number DNI / NIE
• Address
• Job category
• Salary
• Holidays a year
• Contract start date
• Type and duration of the contract
• Contract hours
• The collective agreement of the company

Probation periods are not mandatory. There is no minimum probation period and the maximum probation period is 180 days.