How to hire and pay EMPLOYEES IN

Spain

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Before hiring

EMPLOYEES IN
Spain

Before hiring employees in Spain, there are a few important things you’ll need to know. For starters, Spain groups jobs into different categories and tightly regulates salary ranges, working hours, and yearly vacation days within each of those groups.

Both indefinite and fixed-term contracts for employment can be provided in Spain, but employees typically prefer indefinite contracts because they call for higher compensation packages and provide better job security.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform.

Get an overview of what you need to know when hiring in Spain below.

At a Glance

CURRENCY

EUR

OFFICIAL LANGUAGE

SPANISH

PAYROLL FREQUENCY

MONTHLY

PUBLIC HOLIDAYS

14

(based on region;
see here
)

EMPLOYER TAXES

~30%

of gross salary

13th / 14th SALARY

13th (June) & 14th (December) but can be prorated to 12 monthly salaries per year (More information on vacation bonuses and 13th/14th month salaries here)

Good to know

  • The statutory notice period for contracts in Spain is a maximum of 15 working days (three weeks). It can not be higher than this. Even if a higher number is stated in the Employment Agreement, it is not legally binding.
  • In 2021, Spain implemented a working from home allowance for all remote workers who spend the majority of their time working from home. The allowance is 100 EUR per month gross.
  • At the end of an employee’s contract, they may be entitled to receive compensation. The severance payment amount depends on different factors like the type of contract, reason for dismissal, and length of employment.

Employment in

Spain

Working hours and overtime

Full-time employees in Spain must average a maximum of 40 hours per week of work, which is calculated on an annual basis. Unless an agreement is in place, employees can’t work for more than nine hours a day. Anyone who is under 18 years of age can only work for a total of eight hours each day. Employees can work a maximum of 80 hours overtime per year, which does not include overtime compensated with rest time.

Employment contracts

Both indefinite and fixed term contracts for employment can be provided in Spain. A fixed term employment contract must have a justification for its finite length.

Probationary period

In Spain, the probation period is based on the employee's seniority. “Qualified” technical employees can have a probationary period of six months, whereas “unqualified” employees have a probation period of two months.

Pensions

Spanish state pension calls for significant contributions from the employer (23.6% of an employee’s salary) while a Spanish employee contributes 4.7% of their salary. Occupational and private pension arrangements exist, but aren’t seen as necessary because of Spain’s generous state pension.

Notice period

The statutory notice period for contracts in Spain is a maximum of 15 working days or 3 weeks. Longer notice periods in the Employment Agreement are not legally binding.

Employment cost calculator

Holidays

01 Jan

New Year's Day

01 Nov

All Saints' Day

06 Jan

Epiphany

06 Dec

Constitution Day

2 Apr

Good Friday

08 Dec

Immaculate Conception

01 May

Labour Day

23 Dec

Christmas Day

12 Oct

Fiesta Nacional de España

01 Jan

New Year's Day

06 Jan

Epiphany

2 Apr

Good Friday

01 May

Labour Day

12 Oct

Fiesta Nacional de España

01 Nov

All Saints' Day

06 Dec

Constitution Day

08 Dec

Immaculate Conception

23 Dec

Christmas Day

Employer tax

Employer taxation in Spain totals 31.95% of an employee’s salary and includes social security, unemployment, salary guarantee fund, professional training, and mutual/accident insurance. This applies to a salary cap of EUR 4,070 per month.

Individual tax

Employees in Spain are taxed federally from 19% to 45% depending on their income bracket. Social contributions total 6.4% and include common contingencies, unemployment, and professional training. 

Termination of employment

In cases of termination due to objective economic or agreed performance issues, employees in Spain should receive 20 days’ salary per year of service with their employer. In cases of termination due to mutual agreement, the employee and employer can reach a separate arrangement.

Start hiring employees in

Spain

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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wherever they work in the world.

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