When onboarding an individual from Spain, employers have to know about the employment laws, benefits, social security, deductions, and employment processes. The below section contains all the information that is necessary for an employer.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
According to Spain Labor Legislation, Employment contracts are mandatory for both temporary and permanent employment, and that the employer has to provide one for the employee. The employer has to mention all the details below if the employment contract is more than four weeks.
- Employment Identification.
- Commencement date and end of the project date for temporary employment.
- Service place/location.
- Compensation, Base Salary, and Benefits to the employee.
- Details of working hours, leaves, and notice period.
Probation Period
The standard probation period offered to employees in Spain is three months. For indefinite-term contracts (which make up the majority of employment contracts), the maximum legal probation period is six months. For non-qualified workers, the maximum is two months.
13th Month Pay
The employer has to provide the 13th month and 14th-month pay, one in July and another in December. Employment Contracts and Collective Agreements should have all the 13th and 14th-month compensation details.
Employee Benefits
Employers in Spain may provide the following benefits to their employees: Social Security.
- Sick and Disability Leave.
- Pensions.
- Healthcare Insurances.
Employees are paid once a month in Spain.
The minimum wage in Spain is the following for different employees.The minimum wage rates are EUR 7.82 per hour for domestic employees, EUR 47.36 per day for contingent and temporary workers, and EUR 33.33 per day (up to EUR 1,000 per month) for general employees.
The overtime pay should not exceed over 80 hours in a year, as stated by Spain’s Labor law. Overtime hours are only acceptable if the employee agrees to work based on an acceptable collective agreement. The overtime pay should not exceed over 80 hours in a year, as stated by Spain’s Labor law. Overtime hours are only acceptable if the employee agrees to work based on an acceptable collective agreement. Either a compensation or a rest day will be provided to the employee for overtime work which is to be mentioned in the agreement. However, if the agreement does not mention overtime pay, the employer must give 4 months of rest to the employee.
Employer Payroll Cost:
| Details |
Contribution |
| Common contingencies |
23.6% |
| Unemployment |
5.5% |
|
Salary Guarantee {Fondo de garantía salarial
(FOGASA)}
|
0.2% |
| Professional Training |
0.6% |
Employee Payroll Cost:
| Details |
Contribution |
| Common contingencies |
4.70% |
| Unemployment |
1.55% |
| Professional Training |
0.10% |
Employee Income Tax
| Annual Income of the Employee |
Tax Rate |
| 0 – 12,450 |
19% |
| 12,450 – 20,200 |
24% |
| 20,201 – 35,200 |
30% |
| 35,201 – 60,000 |
37% |
| 60,000 – 300,000 |
45% |
| Above 300,000 |
47% |
VAT
VAT is 21% in Spain.
For the termination of an employee, employers in Spain can provide fair reasons. However, if an employee is employed for more than six months and there is dismissal from the employer, it has to be “Socially Justified” by the following points. Termination of employment for disciplinary reasons without notice. Termination with notice for ordinary causes.
Generally, the notice period in Spain is 2 weeks. However, the notice period depends on the reason for termination of the employment.
Severance pay
Spanish severance pay rules: 20 days' wages for every 1 year of service for dismissal due to objective reasons, up to a maximum of 12 months' salary; If dismissal is found to be unfair, 33 days' wages are paid for every year of service, up to a maximum of 24 months' wages.
In Spain, if the employee belongs to a European Union (EU), they will not require any visa for 3 months. Employees who are not from the EU will require visas for different categories.