Payroll and Benefits Guide Spain
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
24.27%
|
Social Security (includes pension* and Intergenerational Equity Mechanism (MEI), minimum monthly base is 1,260 EUR and the maximum is 5,101.20 EUR)
|
|
5.50%
|
Unemployment
|
|
0.20%
|
Salary Guarantee Fund
|
|
0.60%
|
Professional Training
|
|
2.05%
|
Work Accident Insurance, rates may vary according to the specific insurance policy and might be subject to caps.
|
|
0.76%-0.97%
|
Solidarity contribution, only applied on earnings above the maximum base (€4,909.50 per month), the applied rate varies according to the level of earnings above the maximum base.
|
|
17 – 50 EUR per month
|
Remote Working Allowance (minimum), must be applied when home working 30% or more of the time. The required rate can vary depending on set up and CBA.
|
| 33.59%+ 50 EUR/Month | Total Employment Cost |
* Employer contributions to pension plans are not taxable at the time of contribution. They will be taxed when the employee retires and withdraws the funds. There are annual limits on contributions, with both individual and employer contributions subject to certain maximums for tax benefits. For 2025, the contribution limit is set at €1,500 per year for individual contributions to pension plans and €8,500 per year for employer contributions to pension plans.
| Employee Payroll Contributions | |
|
4.83%
|
Social Security (including Intergenerational Equity Mechanism (MEI), minimum monthly base is 1,260 EUR and the maximum is 4,909.50 EUR)
|
|
1.55%
|
Unemployment (minimum monthly base is 1,260 EUR and the maximum is 4,909.50 EUR)
|
|
0.10%
|
Professional Training (minimum monthly base is 1,260 EUR and the maximum is 4,909.50 EUR)
|
|
0.16%-0.20%
|
Solidarity contribution, only applied on earnings above the maximum base (€4,909.50 per month), the applied rate varies according to the level of earnings above the maximum base. |
| 6.68% |
Total Employee Cost |
| Employee Income Tax | |
|
19.00%
|
0.00 EUR – 12,450.00 EUR Annually
|
|
24.00%
|
12,450.00 EUR – 20,200 EUR Annually
|
|
30.00%
|
20,201.00 EUR – 35,200 EUR Annually
|
|
37.00%
|
35,200.00 EUR – 60,000 EUR Annually
|
|
45.00%
|
60,000.00 EUR – 300,000.00 EUR Annually
|
|
47.00%
|
300,000.00 EUR and over Annually
|
Tax Relief for Expats (Beckham Law)
The Beckham law provides a tax advantage to foreigners in Spain. Expats are eligible to pay a flat fee of 24% on the income they earn within Spain. The law applies to all employees who reside abroad but wish to work in Spain, allowing them to pay taxes as non-residents for the first 6 years of their stay. To qualify for the Beckham law tax relief, the worker should not reside in Spain for 5 years prior to obtaining the tax benefit. The expatriation or relocation for the purpose of obtaining tax benefits under the Beckham Law may occur either in the first year of application or in the previous year.
The application needs to be submitted within 6 months starting from the date of the inscription in the Social Security Administration as an employee for the Spanish company; a late register will result in an automatic denial. To Apply, the worker should submit Model 149 to the Spanish tax agency (“Hacienda”).
Employer taxes
Employee taxes
Minimum Wage
General
In Spain, minimum wages are fixed per industry sector in the collective bargaining agreements; however, in general, the minimum wage used in Spain is 1,184 EUR per month in 14 payments.
The minimum wage of temporary employees, as well as seasonal workers who work for the same company for less than 120 days, cannot be less than 56.08 EUR per day.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Spain, the payroll frequency is monthly and paid typically on the last day of the month.
13th Salary
13th and 14th month salary payments are mandatory in Spain. This is usually paid within the 12 monthly salary payments.
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Seguridad Social – Social Security |
Social security |
Last day of the following month |
Direct debit or Payment in electronic bank |
|
Agencia Tributaria_ Tax Authority |
Withtholding taxes |
20th Day of the following month |
Direct debit or NRC (a code received with the pre-payment) |
|
Nóminas_Salaries |
Employee |
Last day in the month |
Bank transfer |
Working Hours
General
The standard working week in Spain can be no longer than 40 hours a week (8 hours per day). The Council of Ministers has approved a draft bill to reduce the maximum legal working week from 40 to 37.5 hours on average, without reducing pay. Companies and Collective Agreements will have until 31 December 2025 to adapt their regulations and ensure compliance with the new regulations.
The typical Spanish working day is from 8:30-9:00am until approximately 2:00pm followed by a closing for siesta. Operating hours resume from 4:00-5:00pm until around 8:00 pm. Under certain Collective Agreements, during the month of August workers have the right to work a reduced working week of 36 hours, with the hours made up during the year.
The Spanish Worker’s Statute Royal Decree-Law 8/2019 requires all employees to record their effective daily working hours by clocking in and out when they have a break or at the end of the working day.
Overtime
- Maximum Ordinary Hours (Workers’ Statute Article 34): The standard work limit is 40 hours per week, calculated as an average over a reference period of one year.
- Maximum ordinary hours per day cannot exceed 9 hours, unless otherwise agreed upon in a CBA.
- Annual Overtime Cap (Workers’ Statute Article 35): The maximum annual limit for overtime (horas extraordinarias) is strictly capped at 80 hours per year.
- Note: Overtime hours that are compensated with equivalent paid rest time within four months are generally not counted toward this 80-hour annual limit.
- Mandatory Overtime: Overtime is generally voluntary unless otherwise stipulated in a CBA or required under extraordinary circumstances to prevent or repair accidents or other urgent damage (this type is not counted toward the 80-hour limit).
- Record Keeping: Employers have a legal obligation to daily record the start and end of the working schedule for all employees to ensure compliance with the maximum hours and overtime limits.
Overtime Compensation
Spanish law does not mandate a universal premium pay rate for standard overtime, but requires it to be compensated.
-
Compensation Method (Workers’ Statute Article 35.1): Overtime must be compensated in one of two ways, as decided by the CBA or, failing that, the individual contract:
- Payment: Compensation must be higher than the pay for ordinary hours.
- Equivalent Paid Rest Time: Time off in lieu must be granted within four months of the overtime being worked.
-
Common Contractual Rate (Non-Statutory): Where monetary payment is agreed, Collective Bargaining Agreements often stipulate a rate of 150% (Time and a half) or higher, but this is not a statutory minimum enforced by the Workers’ Statute itself.
| Compensation Detail | Statutory Requirement (Workers’ Statute) |
| Max Annual Overtime | 80 hours (excluding time off in lieu or force majeure). |
| Minimum Pay Rate | Must be higher than the ordinary hourly wage. |
| Compensation Choice | Pay or equivalent rest time, as decided by CBA or contract. |
Leave
Annual Leave (vacation)
Employees in Spain are entitled to 30 calendar days (22 business days) of paid annual leave in any given year. A Collective Bargaining Agreement may grant additional vacation entitlements.
PTO carryover
In Spain, statutory annual leave cannot be forfeited. Leave should normally be taken in the year earned, but unused leave must be carried over if the employee couldn’t take it for legally protected reasons (e.g., illness, maternity/paternity leave)
Note:
- For Baldock, no carry over
- For Go Global, PTO carryover is allowed
- For Papaya Direct, Employees are entitled to 23 working days of paid vacation per year. Vacation must be taken by June 30th of the following year; forfeiture is not permitted, and unused days must be compensated at contract end
Public Holidays
Workers are entitled to 14 paid public holidays per year, including national, regional, and local holidays.
National Holidays falling on the weekend are lost. Some regions and municipalities might declare giving the next working day off in lieu; workers should verify Regional and Municipal holiday dates with their local authority.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany / Three Kings’ Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 15 August 2026 | Saturday | Assumption of Mary | Standard holiday |
| 12 October 2026 | Monday | Spain’s National Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
In cases of sick leave due to common illness or non-work-related injury, employees must provide a medical certificate and will be entitled to the following salary payments:
- Day 1-3 of incapacity = unpaid (3 days)
- Day 4–20 of incapacity = 60% of the salary calculation base* (12 days)
- Day 21 & over of incapacity = paid at a rate of 75% of the salary calculation base* (up to a period of 18 months depending on INSS approval).
*Calculation base is the result of dividing the amount of the worker’s contribution basis (the monthly gross salary but capped at an annual maximum amount on which the Social Security rates are levied; for 2025 the cap is 4,909.50 EUR per month) corresponding to the month before the illness by the number of days to which this contribution applies (this divider will actually be 30 days, if the employee receives a fixed monthly salary).
The Employer covers the cost of sick leave until day 15, from the 16th day the employer continues to make the salary payment but can reclaim it from the Social Security Administration (INSS).
A Collective Bargaining Agreement might provide enhanced terms to the above sickness entitlements. The National Social Security Institute (INSS) will send medical sick leave reports for temporary incapacity directly electronically to companies, via the “INSS EMPRESAS” filing mechanism on the RED system.
Maternity Leave
The Royal Decree-Law 9/2025, of July 29 (https://www.boe.es/eli/es/rdl/2025/07/29/9) extends the maternity leave up to 19 weeks, which are distributed as follows:
- 19 weeks of maternity leave (6 mandatory weeks after the birth + 11 weeks more until the baby is 12 months old)
- 2 additional weeks of Parental Leave, which can be distributed weekly until the child reaches the age of eight.
The Social Security System Health Insurance Fund manages and pays maternity pay. Social Security benefits are paid to employees on maternity leave, calculated as a monthly benefit equal to 100% of the salary, up to a maximum base of 4,909.50 EUR per month.
In the case of disability of a child, an adopted child, or a foster care child, employees on maternity leave are entitled to have two additional weeks of leave.
All pregnant women are entitled to healthcare before, during, and after birth. To receive it, they must visit the healthcare center with their Sistema Nacional de Salud (National Health Service) user’s card.
Paternity Leave
Fathers who have 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, is entitled to 16 weeks of paid paternity leave (extended to 18 weeks for multiple births). The first 6 weeks leave after the birth are compulsory and must be taken as time off. The remaining 10 weeks (or 20 weeks of half-day absences) can be taken from the end of the 6 weeks until the child turns one years old.
The Paternity pay is managed and paid by the Social Security System, calculated as a monthly benefit equal to 100% of the salary, up to the maximum base of 4,909.50 EUR per month. During this period, the employer is still liable to contribute to certain taxes that pertain to the salary payments.
For same-sex couples, both parents are entitled to paid leave. One applies for paternity leave benefits and the other for maternity leave benefits. However, in order to qualify for paid benefits, it is essential that each parent has the correct legal association with the child.
Parental Leave
Employees are entitled to take unpaid parental leave (providing at least 10 days notice), up until the minor child reaches eight years of age and for up to eight weeks continuously or over several blocks.
Other Leave
Workers are entitled to additional special leave (unless the Collective Bargaining Agreement outlines a different policy) for the following:
- Care Leave: Employees are entitled to up to two years of unpaid leave to assist a seriously ill household or family member.
- Family Nursing & Hospitalisation Leave: Employees are entitled to 5 days of paid leave to care for family members and second degree relatives with a serious illness, hospitalisation or surgery. The company is permitted to ask the worker to provide a proof of hospitalisation.
- Bereavement Leave: Employees are entitled to 2 days of paid leave (4 days if travel is required) for the death of a family member.
- House Moving Leave: If an employee is moving to a new home, they are entitled to 1 day’s leave.
- Marriage Leave: Employees are entitled to up to 15 days’ leave in case of marriage.
- Judicial Leave: Employees are entitled to paid leave to perform their public or personal obligations (in court) if necessary. A written notice is required.
- Union Leave: When performing trade union or workers’ representative activities, employees can be granted additional leave, as established by law or collective agreement.
PAID MATERNITY LEAVE (DAYS)
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.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Salaries must be paid at least once a month (monthly pay is standard). | When employment ends, the employer must pay all remuneration due (wages, accrued benefits, etc). Also, as of April 3 2025, salary payment delays of more than 15 days may allow the employee to end the contract. | Payment must be in money/legal tender; the law does not uniformly mandate that payment be made only via bank account in all cases (though bank transfers are common). |
Notice Period
Notice periods in Spain are generally set at a minimum of 15 calendar days. Alternatively, employers can utilize payment in lieu of notice.
During the probation period no notice needs to be given.
Severance Pay
For fair individual redundancy: 20 days or 33 days of salary pay per year of service.
For collective layoffs, this payment is usually increased through collective consultations.
For fair disciplinary dismissal: no severance required.
Probation Period
Probation or trial periods are generally set within the Collective Bargaining Agreement; with the common minimum of 2 or 3 months for non-high qualified workers and a maximum of 6 months (180 days) for high categorized workers.
Minimal Statutory Termination Costs
Notice of 15 Calendar days (unless agreed more in the employment contract – it is possible to agree on additional notice, but no less than the statutory minimum 15 days),
PTO cash out
Any pending bonuses, commissions, expenses,
All additional compensation agreed directly between the client and the worker (such as shares)
Severance
20 days per each year worked (pro-rated if the worker did not work for a full year). The worker can claim “improcedencia” (“unfairness”), and then he/she will be entitled to additional 13 days per each year worked, so the severance pay will be 33 days’ salary per year worked. Baldock always recognizes “improcedencia”, so the worker will be entitled to 33 days per each year worked as severance. This must be agreed upon at the SMAC – the conciliation and mediation service, to minimize the risk of legal claim. Meaning – the additional 13 days will be agreed in the conciliation – the SMAC.
Under EoR, the EoR always recognize the unfairness in advance, and pay the additional 13 days per each year worked in advance.
If previous seniority is recognized in the EC, the severance calculation will be based on the seniority. If the seniority is not recognized in the EC, 99% of the cases Baldock will recognize it anyway.
If the worker received bonuses and commissions in the last 12 months it will also be calculated in the severance pay (Baldock does an average on the last 12 months).
Setting Up a Business
Setting up a legal entity
The following lists the steps for establishing a legal entity in Spain
- Verify the availability of the company name with the Central Register of Companies
- Obtain a tax identification number (NIF) by applying to the main tax authority in Spain, the National Tax Agency.
- Deposit social capital at a bank: The company must have a minimum mandatory social capital deposited.
- Draw up rules (articles of association or by-laws) for governing the company.
- Sign the deed of incorporation before a notary.
- Pay the property transfer tax and duty on documented legal acts at the Tax office in the relevant autonomous community.
- Register the company in the commercial register of the province where it has its registered address to ensure it is published on the Register of Companies. Please visit the RMC website to see the different provincial commercial registers to find the correct one for you.
- Make a declaration of commencement of activity at the National Tax Agency. Also, register here for the tax on economic activities.
- Register the company with the social security authority.
For further information about the regulations on setting up a company, consult the Ministry of Industry, Commerce and Tourism PAE portal.
Registration as an employer
An employer will be registered in the social security system and as such will be assigned a number identifying you as an employer; this number will be linked to the workers you employ within the same province. This number is your contribution account code or CCC (Código de Cuenta de Cotización). For more information, click on the Social Security website.
- Registration as an employer must generally be done online via the Online Data Submission System (RED) or the social security online portal (SEDESS).
- If you are an individual employer (natural person), you must have a Social Security number (NUSS) which identifies you when contacting the Social Security. If you do not have a NUSS, you must apply for it with your online ID through the service ‘apply for a Social Security number’. If you have no online ID, you can ‘ apply for an online ID ’. To do this, you will need your ID document, an email address, an electronic device with a camera, and to attach the form TA.1
- You may then register as an employer through RED or via the SEDESS portal under ‘ Registration and assignment of CCC for individual employers ’.
- If you are a collective employer (company, entity without legal personality, etc.), the only option is to register with your online ID via the SEDESS portal under ‘ Registration and assignment of CCC for collective employers’.The documents to be submitted in each case can be found at the following link .
- Lastly, when you apply for registration, you must state the entity through which you will take out insurance for work-related risks and occupational illnesses, and benefits in the event of temporary disability arising from ordinary circumstances unrelated to work. These risks may be insured through the National Social Security Institute (INSS) or various partner institutions who work with the Social Security. A list of such institutions can be found on the Social Security website.
New Employee Registration
The Process:
- Each new worker must be registered with the social security authorities and the national employment service (INEM) in advance of the worker starting to work. The registration is done by the payroll-provider, and requires at least 5 Days before their start date – They cannot be included in payroll until they have been registered
- The payroll provider needs the employer/worker to provide the relevant information and documents below for all New Hires:Copy of ID Card/Residence Card/EU Passport – Front & Back
Date of Birth
Place of birth
DNI /NIE/NIF (fiscal number)
Social Security number (NAF Number)
Marital status
Number of dependents
Son and daughter
Adress+ Province
Telephone+ Mobile
Email
Ending date at the last employer
Ending reason
Is the worker registered at INEM ( public administration of unemployment)
Unemployment period
Education Level
Modelo 145 form
Employment contract
Bank details of payroll BANK AGENCY DC COUNT
The worker should inform the payroll provider of the percentage of IRPF (Personal Income Tax) solicited
The worker should inform the payroll provider if he resided less than 183 days in Spain until they registered with this company.
Card of unemployment/bonus contract (for disabled person)
A ‘remote working’ contract if they work from home - Papaya’s partner Mazars register the workers with the national employment service INEM and the Tesoreria General De La Seguridad Social, an IDC (the Informe de Datos de Cotización, this document shows that the worker is registered with social security and the details of their affiliation) certificate is issued. One copy should be kept by the employer and one copy kept by the worker
Please Note:
If the worker does not have a NAF number (Número de Afiliación de Seguridad Social or SSN Social Security Number numéro de seguridad social), there are two options:
-
- The worker can contact the INSS (Instituto Nacional de la Seguridad Social) and process it on their own they will need to bring:
-
- Passport and a NIE Number
Application form TA1 – completed and signed
Any other documents that would support their case (e.g. employment contract, house contract, job offer, etc)
Non-Eu must bring residency papers - Papaya’s partner Mazars can process it for them with the TA1 form completed and signed (this will entail additional costs).
- If the worker does not have a NIE number (the Foreigner’s Identification Number Número de Identificación de Extranjero), they need to do the following:
Bring forms listed below to one of the immigration offices (oficinas de extranjeros); usually can be found in designated police stations (comisaría de policía):
- Passport and a NIE Number
The official NIE application form.
Passport photo.
A document certifying the reason to be applying for a NIE.
Identity document or Passport, the original, and a photocopy of all pages.
Common Benefits
- Food allowance/vouchers
- Health insurance/allowance, between 50-150 EUR per month
- Home working allowance – 55 to 100 EUR per month.
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 Labor prior to appointment. The embassy or consulate will then issue the work and residence visa after the Ministry of Labor 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.
Remote Work
Remote working set ups have become very common in Spain in recent years. It is recommended to give all homebased employees a Home Working allowance of at least €50 (and up to €100 per month is common depending on the job requirements) Euros per month. This applies when home working 30% or more of the time. Certain Sectors and Collective Bargaining Agreements make this allowance a mandatory requirement e.g. the banking sector. This allowance is taxable.
VAT
General
The standard VAT rate in Spain is 21%.
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Payroll and Benefits Guide
in Spain
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany / Three Kings’ Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 15 August 2026 | Saturday | Assumption of Mary | Standard holiday |
| 12 October 2026 | Monday | Spain’s National Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Hi, can unused leave be paid out to the employee? TIA.
Hi Sofia, thank you for your question. Vacation days expire on the last day of each year. Unless stated in an employment contract or collective bargaining agreement,
employees are not entitled for leave to be paid out and cannot be carried over to the following year.
Hi, can the “Régimen especial” (the Beckham law) be applied to a contract managed by Papayaglobal?
Hi Marco, We can apply the special tax regime available for ex-pats, aka “Beckham law”, as long as the worker was granted with that tax regime by the tax agency. The tax rate is flat 24%.
The worker will need to provide us with a copy of the letter issued by the “Hacienda” (tax agency).
For a German located company/Start Up, What is the price for your “Global EOR” package to hire someone in Spain?
Hi Foster, thanks for reaching out. Kindly book a demo here https://www.papayaglobal.com/schedule-a-demo/ and someone will reach out to you so we can understand exactly what you need.
Hello! What’s are the typical benefits along with terms of agreement for a 6 month contract?
Hi Meredith, thank you for your question. We typically do not offer any in-kind benefit recommendations. However, in general, food allowance is something that is common in Spain.
Hello. What is the typical amount for food allowance in Spain?
There is no requirement to provide a food allowance in Spain thus we don’t have any benchmarking. In other European countries where this is a common benefit it tends to be between 6-10 EUR per day.
Hello,
If I submit my resignation in January do I get compensated for 13th,14th salary and the unused holiday of the same year?
Thanks,
Hi Emma, thank you for your question. You would be entitled to be paid out for any unused paid holiday. However, for the 13th and 14th salary, you would not be entitled to as you would already have been paid out the previous year. You would most likely be entitled to a prorated amount which would depend on when your last day of employment is.
Hello, I have one question.
For the employees in Spain: What is the exact rate that we need to pay extra to employees in Spain when they are working less than 30% (is that correct?) from the office / so min 70% from home office?
Thank you
Hi Monica, thank you for your question. While the law has established that employers must compensate for work from home when a regular employee works more than 30% from home for at least 3 months, no minimum allowance was set. That being said, the only collective bargaining agreement that has established an amount is the banking sector. As of now, this is the benchmark that is being used, which is a home allowance of 50 EUR per month.
With Sick pay – is this based on basic pay, or does it also include specific add on (like the 13/14 month and other allowances)?
Hi James, thank you for your question. Sick pay is calculated based on the regular monthly salary and is not inclusive of 13th and 14th salary or any other component.
Can Papaya sponsor a non-eu citizen employee´s Work Visa in Spain on behalf of our entity – if we are obviously not legally constituted there on anywhere in the EU for that matter?
Hi Carlos, We can assist with the work permit process in Spain for both payroll and EOR clients. If the worker will be employed through the EOR model, our partners in Spain will be the sponsor of their work visa. If they will be employed through the clients entity in Spain, the client will be the sponsor of the work permit.
Thank you Erez, is there any one-pager or more info. that you could provide on how Sponsorship works under the EOR model, namely in Spain? If not, please contact me for a quick call or send over a more detailed explanation of the process, considerations, and requirements. It would be inmensely helpful for us. Consider that we DO NOT have an entity in Spain or the EU.
Hi Carlos, we have escalated this to your HR team as they are handling this.
Do restaurants have to pay the 14 pay periods as well? Is it legal to terminate an employees contract when they are on sick leave?
Hi Gina, thank you for your question. Typically in Spain 14 salaries are given, pro-rated if someone has not worked a full year. Collective agreements can also determine rules around these additional salaries so the employer should review which collective bargaining agreement the employee falls under as this might determine any requirement regarding the 13th and 14th salaries.
Hi Gina, thank you for your question. Typically in Spain, 14 salaries are given, pro-rated if someone has not worked a full year. Collective agreements can also determine rules around these additional salaries so the employer should review which collective bargaining agreement the employee falls under as this might determine any requirement regarding the 13th and 14th salaries.
And is it legal to terminate an employees contract for end of tourist season when they have a Baja medical? And then hire someone else to replace said person?
Hi Gina, in general no, however, if the employment agreement was fixed term, there may be other things to take into consideration. I would suggest consulting with a labor lawyer to understand your exact situation as there are a lot of factors that need to be taken into consideration.
Hi, can employers file for maternity/paternity benefits on behalf of the employee and continue to pay the employee directly?
Hi Sara, thank you for your question. Maternity leave is paid by social security and not through the employer.
Hi, I would like to know how much (as a percentage) I would have to pay in taxes per month, if I hire my son as an employee. I’m self-employed and work from home; my son lives with me. TIA
Hi Joanna, you can use our cost calculator to get an estimation of how much taxes you would need to pay here https://www.papayaglobal.com/cost-calculator/.
Hola !
Presently in the Netherlands waiting for an operation. Got already a certificate for longterm sick leave for 3 months. Company ask a Baja in Spain to validate this by means of a social security doctor in spain. So how can i get his ?? Rgrds Rob
Hi Rob, do you work in Spain? If so, you would need to reach out to a doctor in Spain to have your sick leave validated in Spain.
Hola Emily ! I work in Malaga since 2014 and i got my NIE and also Tarjeta Sanitaria. How and where can i find a doctor ?
Presently living in the Netherlands due to COVID-19. Thanks for your Help !
Hi Rob, this is out of the scope of what we can assist you with on the CountryPedia. However, please note that if you are working remotely, you might encounter issues with taxation and such due to you not currently residing in Spain.
Hi,
If I was to work from Spain, using Papaya (and we do not have a Spanish entity), is it possible to apply for Beckham’s law for tax purposes, and would you be able to help obtain these permissions
Thanks
Hi Saddif, It is possible to benefit from the Beckham law under EOR. However, our EOR ICP is not involved in obtaining this permission, the worker will need to apply for this on their own. If legal counsel is needed to help with this process our ICP can suggest someone.
I’m trying to understand if I’m eligible to the Special Tax Regime (Beckham law) but the legal information I have received so far is lagging and incomplete. I need to decide on whether to accept an offer or turn it down so I have a bit of time pressure. Could you please suggest a legal counsel that can advise on these matters.
Individuals who think they are eligible for the Beckham law should apply themselves directly to the Hacienda (Spanish Tax agency) to review and approve.
Hi, my legal advisor told me that since I arrived at Spain a few months before starting to work in the Spanish entity, I would need a letter from my Spanish employer explaining the reason for the gap. My actual employer (in Hong Kong) is willing to supply such letter, but my understanding is that it would have to come from Papaya as my Spanish employer. Can Papaya supply such a letter please?
Hello.
Please ask your company to contact their account manager/customer success manager.
Hello! Amazing content! Say you start working in May, do I get the extra salary on July too having worked only 3/4 months? Thank you!
Hi Davi, and thank you. Are they referring to 13 and 14 salaries? There might be some variation depending on collective bargaining agreements, but typically you will be pro-rated. It is also important to note that many companies pay 13 and 14 within the 12 monthly payments, not as an addition twice a year.
What is the minimum pay per hour in Spain when you work on Saturdays and Sundays?
Overtime pay is typically stated within the collective agreement or independent contract. Overtime pay should never be less than ordinary pay or less than equal amounts of rest in lieu of payment. Overtime hours compensated with rest in lieu of pay must be given within four months following the overtime work.
Hello,
I might relocate from France to Spain to start a new job in Madrid (with a company that I haven’t been working for anywhere else).
I have heard and read that getting a NIE can be a very cumbersome process. Could you perhaps let me know if a Spanish employer can legally hire a EU citizen who doesn’t have an NIE yet? And, if so, for how long?
Many thanks
Alex
Hi Alex, thank you for your question. An EU citizen must be registered with the Social Security authorities and have an NIE in order to be able to work in Spain. An employment contract can be drafted without the NIE and a passport number can be used as a form of identification. However, you would not be able to start working until the NIE is received.
Hello, is there a minimum maximum pay for hiring interns in Spain if under CBA (overall HC less than 50)? Is it taxable and what deductions/ benefits are mandatory? Approximate internship period is 3-6 months. Does the employer need to apply for social security number or students already have it?
Can you please explain what you mean by under CBA (overall headcount less than 50)?
In regards to your other questions:
The pay is taxable. Deductions/benefits that are mandatory are the same as those of the other employees, but social security contributions both of employer and employee are much smaller than the regular employees.
If the student is a Spanish citizen, they probably already have a Spanish social security number, so no need to apply.
Hello. Quick question please. Is marriage leave days (15days) the same across Spain? Or is it likely that the CBA of the region will give a different number of days? I am interested to find out what is the entitlement in the Cantabria region. Thanks a lot
The entirety of Spain grants 15 calendar days of paid leave for marriage.
Hi,
is there a legal requirement for an employer to pay out salary in advance, if an employee ask for this?
Lets say an employee has is paid 1.400 each month on the 1st, can they then on the 15th ask for an advance of 600 € and then only get paid the rest 800 on the first?
There is no legal requirement to pay salaries in advance. For fixed salaries, the employee shall receive any salary amounts actually earned and accrued, proportional to the time worked. Salary pay-out schedules are normally indicated in employment contract eg. the services provided shall be paid on the last working day of each month by means of transfer to the bank account designated by the employee.
Hi. How long someone can stay employed through EOR in Spain, before is required to be hired directly by the company’s local entity? Is there any time limit?
There is no specific limit. However, the EOR model is generally seen as something more temporary whilst a company looks to create an entity in the long term.
Hi would appreciate your advise what is the term when no prohibition period in the agreement but termination according to law – how many days needs to pay – what is teh notice period given to the emplyee
Termination according to law means a worker would be entitled to a severance pay of 20 days or 33 days of salary per each year worked, depending if the dismissal was considered “objectivo” (grounded/fair/justified) or “improcedente” (unfair). Notice Period is 15 days, minimum by law. A higher period can however be agreed upon.
Hi,
How does a bonus payment work in Spain? (I’m talking about additional bonus paid out in March not the 13th and 14th salary) Is an employee still eligible for the previous year bonus if resigns before it’s paid out? Bonus payment is not mentioned in the contract.
This sounds like a discretional bonus offered by the employer, as such the terms of the bonus are based on company policy and the company’s HR/Legal/Finance team should be able to advise. If you are referring to a different type of bonus please provide additional explanation.
For someone on fixed term contract hired via third party what is the maximum period that the contract can be extended? Are there any statutory benefits that the fixed term employee is entitled to?
Hi, with the new Digital Nomad Visa beginning in January 2023, what options do the companies have in United States with papayaglobal to hire somebody from Latin America that wants to relocate to Spain?
Hi Gustavo,
the digital nomad visa is independent of EOR sponsorship so we can’t support this visa type. That said, the answer would depend on the company’s setup, the specific worker’s country of citizenship, immigration status, and the project country. For instance, if a US company is using Papaya for EOR in Peru and have hired a Peruvian national that wants to get a Spain digital nomad visa, this may be an option since they don’t have to remain in Peru to maintain their citizenship. That said, if the worker is not a Peruvian national or even holding permanent residency in Peru, they may be able to obtain the digital nomad visa for Spain, but wouldn’t be able to maintain their immigration status in Peru as there would be requirements on how long they can be outside of the country, tax implications, etc.
In most cases, if a US company is using an EOR in a South American country and hiring ex-pat workers there that now want to move to Spain, it may make more sense for them to move the worker to our EOR provider in Spain.
Hi – For Fathers that are entitled to paid paternity leave, do all actually receive 100% of their pay, or is the a maximum/limit for those with higher salaries?
It is 100% of the contribution base (“base de cotización”) which is monthly gross salary capped to a maximum amount of 4,495.50 EUR (this amount changes each year). This means that any workers paid 4,495.50 EUR per month or higher will only receive 4,495.50 EUR during the paternity leave period.
Thank you. So a father making more than 4495.50 euros per month would earn less during paternity leave? Is that correct? For example, if their normal gross salary was 7000 euros per month, they would only be paid 4495 euros per month during their paternity leave? Doesn’t this disincentive some fathers from taking paternity leave? It seems odd that someone should make less during their parental leave.
Hello,
I was offered a job with 35.000€ annual base salary. Can you please help me calcute amounts that will have to be paid for taxes and what would be monthly net amount that I would receive?
Thank you in advance
Hello, we have a tool to help you calculate taxes in over 70 countries. Here is the link: https://www.papayaglobal.com/cost-calculator/
Hello. Are employers in Spain obliged to provide a salary advance if asked by an employee?
Hello, there is no legal requirement to pay salaries in advance. Salary pay-out schedules are normally indicated in the employment contract.
Is it true that employers have five days gap to pay employee? And can the date change every month?
Hello, could you clarify what you mean by “five day gap”? In Spain, salaries are paid at least once a month, by the last day of the month.
Some month we have 30 for example we have 31 days in August will I receive my salary by August 30 or August 31
It can vary depending on the company, however, many companies will pay on the last business day of the month.
Hi there,
When calculating your daily rate as a salaried employee in Spain, do you divide the salary by 30 or by 20? Thanks!
30
Hello, could you please advise if 50 EUR (monthly) is the minimum work from home/remote allowance that employers are required to pay? If so, is there documentation online that would show this information? Thank you!
The law doesn’t set a specific amount, but companies are obligated to cover operating costs. As it is not practical to determine exact costs of each worker’s heating and electrical bills etc, companies tend to set a reasonable fixed sum that will cover the costs – 50 EUR per month is generally seen as the benchmark amount to be given as a minimum.
Hello. I am moving to Spain from Chile to start a new job with a Spanish employer. If my employer pays for my moving/shipping costs, is this considered to be taxable income or are any exemptions available? Thank you.
Unfortunately, we are unable to provide specific information on tax-exempt items or shipping costs for individuals. The employee should consult their employer or the shipping company for guidance on these matters.