Spain offers a large southern-European talent market with strong protections and 14 salary payments a year. All-in employer cost runs around 1.32x the gross salary. Here is what to know before your first Spanish hire.
Employment runs under the Workers' Statute (Estatuto de los Trabajadores) and a binding collective agreement (convenio) for most sectors. Contracts are usually open-ended after the 2021 labour reform curbed temporary contracts, and social-security registration is mandatory.
Employer social-security contributions are high, roughly 30-32% on top of gross salary, covering common contingencies, unemployment, training, and the wage-guarantee fund.
Contributions apply between a minimum and a maximum base set each year, so very high salaries carry a smaller effective percentage.
Employees pay their own social-security share plus income tax (IRPF), withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Spanish contract, payroll across 14 payments, social security, and benefits, handled. One invoice, flat $499 per month.