Currency: Euro (EUR)

Capital: Madrid

Official language: Spanish

Payroll Cycle: Monthly

Paid Time Off

In Spain, employees with a 36 hour workweek are entitled to 22 business days of paid holiday a year after one year’s continuous employment, otherwise, they are entitled to 23 business days. Holiday entitlement cannot be replaced by payment in lieu.

Public Holidays

• New Year’s Day
• Epiphany
• Maundy Thursday
• Good Friday
• Labour Day Holiday
• Assumption of Mary
• Fiesta Nacional de España
• All Saints' Day
• Constitution Day
• Immaculate Conception
• Christmas Day

Additional regional holidays may also apply.

Individual Income Tax

The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 19% to 47%

Employer Tax

Approximately, 31.9% of employee salary

Employment Contract Details

Contracts registered with the local authorities must be in Spanish. However, bilingual wording is permitted. Contracts must be in writing if lasting more than 4 weeks.

Probation Period

Depending on the job category, the maximum probation period is 6 months. Specifically, temporary contracts will have a trial period of 15 days and for the rest of the contracts, the trial period will range from 3 to 6 months.

Minimum Wage Requirements

The Minimum Wage is EUR 1,108.30 per month. It might vary depending on the job category.

Maximum working hours and overtime

The maximum working time is 40 hours per week (1,800 hours per year). On agreement, flexible working schedules can be arranged, but with a limit of 9 ordinary hours of work per day.

Bonus and expense payments

Employers must pay employees two extraordinary bonuses each year (13th & 14th salary). As a rule, one bonus must be paid at Christmas and the other in a month stipulated by an applicable collective agreement or an agreement between the employer and employee representatives. However, it is possible - upon agreement with the employee - to divide the bonuses on monthly installments to be paid along with the salary for simplicity.

Parental Leave

• Maternity leave: 16 weeks. The employee must take 6 of these weeks immediately after the birth. The remaining 10 weeks can be organized by the parent under discretion until the child is 12 months old. The expectant employee can anticipate the suspension up to 4 weeks before the expected date of birth.
• Partner leave: 16 weeks. The partner must take 4 of these weeks immediately after the birth. The remaining 8 weeks can be organized by the progenitor under their discretion until the child is twelve months old. This is an individual right of the worker and its exercise cannot

Sick Leave

A minimum previous contribution period of 180 days’ worth of social security contributions in the previous 5 years has to be fulfilled for the Spanish Social Security covers part of the worker’s salary, except where the incapacity is due to an occupational illness or accident at work. Any sick leave compensation depends on the length of the absence, however, it cannot exceed one year.

For unfair dismissal and dismissal on objective grounds notice periods are 15 days with the addition of a severance payment. Employees can appeal to court if they considered the dismissal unjustified.

Severance pay is dependent on the reason for the termination, in cases of termination due to economic or agreed performance issues employees should receive 20 days’ salary per year of service with the employer.

Notice Period

The standard notice period is 15 days from when the employee is notified. Longer notice periods may be agreed within the employment agreement or by collective agreement.