Spain
Know everything about hiring and compliance in Spain.
The Minimum Wage stands at EUR 1,166.67 per month. Overtime payment is compulsory and can be included in the regular salary. Overtime refers to hours worked beyond the standard work hours. Employees are allowed to work a maximum of 80 hours of overtime.
Standard working hours consist of 8 hours per day and 40 hours per week, which totals to 1800 hours per year. The standard workweek spans from Monday to Friday. Unless there is an agreement in place, employees are restricted from working more than 9 hours per day. Furthermore, they can only work a maximum of 80 hours of overtime per year.
In Spain, mandatory benefits encompass Social Security, a Work from Home Office allowance, Unemployment insurance, Health insurance, a Pension fund, and a Salary guarantee fund. Private healthcare is offered as an optional benefit that employers may provide to enhance the employee experience.
Employers are obligated to pay two additional salaries per year: the Summer Holiday, equivalent to a 13th-month salary, and the Christmas Allowance, corresponding to a 14th-month salary.
In Spain, employers typically handle payroll on a monthly basis, adhering to a preferred schedule as follows:
- Payroll cut-off date: 20th of each month
- Payment date: Last day of each month
Individual income tax in Spain is determined by progressive rates, and several additional factors may influence the overall tax rates, such as household status and the number of children. The income tax rates are as follows:
- Up to EUR 12,450: 19% tax
- EUR 12,451 to EUR 20,200: 24% tax
- EUR 20,201 to EUR 35,200: 30% tax
- EUR 35,201 to EUR 60,000: 37% tax
- EUR 60,000 and above: 45% tax
All contracts must be in Spanish and may also be bilingual. Additionally, they must be in written form and duly signed by both parties. Essential elements that a contract must include are the employee's name, DNI/NIE number, address, job category, salary, number of annual holidays, contract start date, type, and duration of the contract, contract hours, and reference to the company's collective agreement.
Backdating of contracts is strictly prohibited.
The standard probation period in Spain is typically three months. For indefinite-term contracts, which are the most common type of employment contracts, the maximum legal probation period is six months, whereas, for non-qualified workers, the maximum allowed probation period is two months.
During the probation period, any sick leave taken by the employee will pause the probation period until the employee resumes work.
Severance pay in Spain is contingent on the type of dismissal an employee experiences. In cases of non-voluntary dismissal by the employer for non-disciplinary reasons, the severance pay amounts to 20 days of salary per year of service (proportional for employment periods less than one year).
However, if the dismissal is deemed unfair, the employee is entitled to receive 33 days' salary per year worked, with a maximum cap of 24 months' salary.
Regarding notice periods, the minimum required is 15 days, though it could be longer depending on specific circumstances. During the probation period or for disciplinary terminations, no notice period is mandatory.
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Frequently asked questions
What is the maternity leave policy in Spain?
Employees who have contributed to Social Security for at least 180 days in the previous 7 years before starting the leave are entitled to 16 weeks of paid leave. Six weeks must be taken after the child's birth. The remaining days can be divided into two periods of time. The employee will receive 100% of the salary during this period (up to 4.139,40 EUR), and Social Security will be responsible for this pay. 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.
Do male employees have the right to paternity leave in Spain?
Employees who have contributed to Social Security for at least 180 days in the previous 7 years before starting the leave are entitled to 16 weeks of paid paternity leave. Six weeks must be taken after the child's birth. The remaining days can be divided how the employee sees fit until the child is 1 year old. The employee will receive 100% of the salary during this period (up to 4.139,40 EUR), and Social Security will be responsible for this pay.
How many sick leave days are employees entitled to in Spain?
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: - 0-3 Days: 0% Pay - 4-15 Days: 60% of salary paid by employer - 16-20 Days: 60% of salary paid by social security - 21-30 Days: 75% of salary paid by social security - 30-395 Days: 100% of salary of which 75% paid by social security and 25% by employer
What are the public holidays observed in Spain?
Public Holidays vary by region (municipality) in Spain. Each municipality is allowed to have 14 bank holidays per year. These include: - 8 bank holidays set by the Spanish government - 4 regional holidays set by the local government - 2 municipal holidays set by the town hall National public holidays include: - New Year's Day - Good Friday - Fiesta de la Hispanida - Spanish Constitution Day - Epiphany of the Lord - Assumption of our Lady - All Saint's Day - Immaculate Conception
What are the legal requirements for terminating an employee in Spain?
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
Is severance pay mandatory in Spain?
Severance pay will depend on the type of dismissal. Non-voluntary dismissal by an employer for non-disciplinary reason, severance pay will be 20 days of salary per year of service. (proportional if less than <1 year) Where the dismissal is unfair, the employee is entitled to severance pay of 33 days’ salary per year worked, capped at 24 months’ salary.
How long is the notice period typically in Spain?
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.
What documents are typically required during the employee onboarding process in Spain?
Compliance documents required at the time of onboarding: - Passport - Social Security Number Request - Form 145 - Risk prevention measures and medical examination opt in / opt out
