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Your guide to the employment landscape, working customs and local labor laws in Spain.
Capital
Madrid
Currency
Euro (EUR)
Languages
Spanish
GDP per Capita
$31,781.08
Employer Tax
29.90%
Payroll Frequency
Monthly
Spain is known for its amazing culture, delicious food, and mesmerizing scenarios. Tourism in Spain progressed the economy, the country had 82.8M visitors generating 89.8 EUR billion in international receipts. According to the Institute of Economic Studies, Spain also holds the fourth-ranking for the highest number of engineers and scientists in the European Union (EU). Major industries that progress the economy in Spain are; Tourism, Agriculture, manufacturing, and energy industries.
Major economic hubs:
Madrid, Barcelona, Bilbao, Las Palmas
Skills in demand:
Local: 1
World : 120
Local: 2
World : 123
Local: 3
World : 157
Local: 4
World : 159
Local: 5
World : 208
Infojobs.net, Indeed Spain, LinkedIn, Trabajamos
16,410,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The table below mentions some jobs with the average salary in Spain.
Job Title | Average Monthly Salary (EUR) | Average Monthly Salary(USD) |
Financial Manager | 5,240 | 5,631.24 |
General Manager | 4,860 | 5,222.87 |
Information Technology Manager | 4640 | 4,986.45 |
Sales Manager | 4,600 | 4,943.46 |
Human Resources Manager | 4,150 | 4,459.86 |
Financial Analyst | 3,510 | 3,772.07 |
Project Manager | 3,440 | 3,696.85 |
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.
According to Spain Labor Legislation, Job 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.
Additional public holidays may apply based on a regional level.
Type of Leave | Time Period | Mandatory |
Annual Leave | 22 days (30 calendar days) | Yes |
Sick Leave | There is no specific day for sick leave, although the employer pays from day 4 to day 20 | Yes |
Maternity Leave | 16 weeks | Yes |
Leave Compliance
Payroll cycle
Employees are paid once a month in Spain.
Minimum wage
The minimum wage in Spain is the following for different employees;
Read more
Overtime pay
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.
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Details | Contributions |
Common contingencies | 23.60% |
Unemployment | 5.50% |
Salary Guarantee {Fondo de garantía salarial (FOGASA)} | 0.20% |
Professional Training | 0.60% |
Details | Contributions |
Common contingencies | 4.70% |
Unemployment | 1.55% |
Professional Training | 0.10% |
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 is 21% in Spain.
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.
As stated by the Spain Statutory Laws, the employer has to provide the employee with the below-mentioned benefits;
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.
Generally, the notice period in Spain is 2 weeks. However, the notice period depends on the reason for termination of the employment.
When the employer terminates the employee without notice, the employer has to provide severance pay for the duration of the notice period. However, if there is a disciplinary dismissal (based on a punishable offence), the employee will not be provided with any severance pay from the employer.
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. Based on the length of the employment, a visa in Spain is classified into four main categories:
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Overtime Pay
Minimum Wage
Type of Employee | Minimum wage | ||
Per Hour | Per Day | Per Month | |
Domestic | EUR 7.82 | – | EUR 1,000 |
Contingent and Temporary | – | EUR 47.36 | – |
General | – | EUR 33.33 | EUR 1,000 |
Overtime Pay
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.
Visa and Immigration
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. Based on the length of the employment, a visa in Spain is classified into four main categories;
Au Pair Visas: This is a special visa for Individuals from Paris valid for one year. The individual needs to show documentation to support their expenses and accommodation and travel expenditures.
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