Spain 🇪🇸
Congratulations on your decision to hire employees in Spain! Spain is known for having a highly educated and skilled workforce, particularly in the areas of technology, tourism, and renewable energy. Plane makes the hiring process easy for you by providing automated tax document collection, payroll, benefits, and more. This ensures compliance and efficiency throughout the process. Navigating how to hire in a new country can be challenging, so we've compiled the details below to help guide you.
Currency
EUR
Onboarding
2.5 weeks minimum
Employer Cost
35.1%
Pay Frequency
Monthly
Public Holidays
10
5 Considerations Before Hiring in Spain
As an employer in Spain, it is important to have a comprehensive employment contract outlining the employment relationship's terms and conditions. The contract should include compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Spain, take a moment to consider the following questions:
Getting Started with Hiring in Spain
Employment Contract
Employment contracts in Spain can be verbal or written. They exist when work is performed for an employer, at the employer's direction, by a subordinate individual who is paid for their work. Either party can request a written agreement at any time. Employers must provide employees with written information on the main terms of the contract if the employment lasts longer than 4 weeks. This information can be provided through a formal written employment contract.The written contract must include:
- Employer and employee identity
- Start date and duration
- Work location
- Job category/description
- Salary details
- Working hours/days
- Holiday details
- Notice period
- Applicable collective agreement
- Details on any work abroad
- Permanent
- Temporary
- Training
- Apprenticeships/Internships
Payroll Timelines and Dates
Pay Frequency: Employee payroll is monthly. Employees receive their pay via direct deposit by the last working day of the month.Payroll Change Cutoff Dates: To meet payroll deadlines, any changes must be submitted to support@pilot.co by the cutoff date.Pilot sends payroll summaries to admins at the end of the second week of the month. After that, charges are automatically debited. Payroll summaries are also available to admins in their Pilot accounts. Payday may vary based on country requirements.
Working Hours
Working hours in Spain are generally set by individual or collective agreement but cannot exceed 40 hours a week on average over a year. In the absence of an agreement that details the scheduling of irregular work hours, the employer can allocate a maximum of 10% of the working hours throughout the year. Working hours generally cannot exceed 9 hours a day, unless otherwise provided by collective or individual agreement. The maximum amount of overtime allowed is 80 hours per year. Overtime that is offset by rest time (not payment) within 4 months of its completion is not included in the calculation of annual overtime hours. Overtime performed at night is prohibited except in duly specified and expressly authorized situations. Night-time work is between 10 p.m. and 6 a.m. Employers must inform local labor authorities if night work is performed on a regular basis. Night work may not exceed an average of 8 hours a day over a 15-day period. Employees who perform 3 or more hours of their work at night, or a third of their workday at night, are night workers.
Public Holidays
There are 10 public holidays in Spain:
- New Year’s Day
- Epiphany
- Good Friday
- Labor Day
- Assumption Day
- Fiesta Nacional de España / National Day of Spain
- All Saints’ Day
- Constitution Day
- Immaculate Conception
- Christmas Day
Compensation
To check remote salary data in Spain by job title, you can use Pilot's Remote Compensation Tool.In Spain, employees must receive at least the monthly minimum wage, which can be paid in either money or goods. If paid in goods, the value cannot exceed 30% of the employee's salary or bring the total amount paid in money below the minimum interprofessional salary. Additionally, employees are entitled to receive two statutory extraordinary bonuses annually, with one paid around the Christmas holidays and the other paid in a month determined by either a collective agreement or by the employer and employee representative. The amount of these bonuses is generally established through collective agreement, but cannot be less than the employee's basic monthly salary.
Health Insurance Benefits
In Spain, all employees are required to pay social security taxes, which provide comprehensive medical coverage, retirement benefits, and pensions. The registration process can be initiated by the employer, employee, or government. Employers are responsible for requesting social security affiliation for employees who are not yet affiliated. Social security eligibility is mandatory for all workers and is determined by factors such as age, type of benefits, and length of contributions. Some companies provide private health insurance as an additional benefit for their employees. For our recommendations, please see the section above on "Do you want to offer private supplemental health insurance?"It is also possible for the employee to cover 100% of the cost of their own health insurance via payroll.
Sick Leave
Employees can take up to 12 months (365 days) of sick leave, which can be extended for another 6 months (180 days). This is known as Temporary Disability or IT (Incapacidad Temporal). Eligible employees are entitled to benefit payments during leave ranging from no statutory payment provision to 75% of the regulatory base. To be eligible for benefits, employees must have at least 180 days of contributions in the 5 years before taking sick leave. For accidents related to sick leave, there is no minimum qualifying period. Employees must also have a medical certificate from a doctor affiliated with the Public Health System.
Vacation Leave
Employees are given 30 days of paid vacation leave per year, in addition to public holidays. Payment in place of annual leave is not permitted, and leave will be determined through an agreement between the employee and employer, as stated in a collective agreement.
Maternity / Paternity / Parental Leave
Female employees in Spain are entitled to 16 weeks of paid maternity leave for the birth of a child. If a woman has multiple births, she can receive up to 18 weeks of paid leave for twins and 20 weeks for triplets. If a child is disabled, maternity leave can be extended by 2 weeks. If a child requires hospitalization for more than 7 days, maternity leave can be extended for up to 13 weeks. Fathers are entitled to 16 weeks of paid paternity leave, which can be taken at the same time as maternity leave. Each parent is entitled to 16 weeks of paid leave for adoption or fostering. Eligible employees can receive payments from Spain’s social security scheme while on leave for the birth or adoption of a child. The payment amount is 100% of the employee’s regulatory base, which is calculated based on their salary in the month preceding leave.
Employment / Termination
Employment relationships can end in various ways depending on the circumstances. Employment contracts may terminate through mutual agreement, at the end of a fixed term, by the employee, or by the employer for specific reasons. Fixed-term contracts end on the agreed-upon date or on the completion of the service. Employees are entitled to compensation at the end of the contract, with the amount determined by length of service. Employers must provide notice when terminating an employee, with compensation based on length of service. Employers can also dismiss employees for disciplinary reasons, with no obligation to pay compensation.At Pilot, we process involuntary offboarding via Mutual Termination Agreement (MTA) as a common practice that enables an employer to terminate an employee while trying to minimize the risk of litigation and cost. It is a separation agreement including unused leave, notice period, severance, and terms negotiated between the parties in exchange for a waiver where an employee waives their right to challenge a termination as unfair or unlawful. The notice period varies based on the length of employment.It is important to note that Pilot often cannot facilitate unilateral terminations or dismissals. These types of termination are a potential source of litigation that can expose employers to increased damages and other costs. Also, the reason for these terminations may not be valid for an employer of record. The notice period varies based on the length of employment.We ask that you give us as much notice as possible and involve us right from the beginning of the process so we can better support and guide you through the process. Involuntary termination can take time to negotiate with the employees to mutually agree and end on good terms. Here you can find additional information on how to terminate an employee.
Hire Calculator
Tell us about your employee.
Enter details about your hire to get an estimated employment cost, including taxes.
Annual cost of employment*
0.00BRL
BRL
| Salary | Taxes (32.65%) | Total | |
|---|---|---|---|
| Monthly | 0BRL | 0BRL | 0BRL |
| Annual | 0BRL | 0BRL | 0BRL |
*rates for: July 23, 2024
Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:
How to hire and onboard an employee
Plane offers a guided process for administrators and managers to hire and onboard their new employees...
Learn moreHiring an employee in a new country can be complex, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate the process of hiring an employee in Spain. We'll keep you updated with the latest regulations and employment laws. Best of luck with your new hire, and welcome to Spain!
Frequently Asked Questions
Here are the answers to some common questions about hiring employees in Spain with Plane:
Leave Laws and Holidays in Spain: A Guide for US Companies
Read More →
6 Best Practices for Successfully Onboarding Remote Employees
Read More →