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.
The SMI is €1,134 gross per month across 14 payments as of 2024*, revised annually. Many convenios set higher sector minimums.
Monthly, but salaries are typically expressed across 14 payments, with two extra payments (pagas extra) in summer and December, often prorated.
Up to 14 public holidays a year, combining national, regional, and local dates.
Written contracts are registered with social security. Probation is set by the convenio, commonly two months and up to six for qualified staff.
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.
30 calendar days (about 22 working days) of paid holiday a year, as set by the Workers' Statute and the convenio.
16 weeks of paid birth leave for each parent, funded by social security, with the first weeks compulsory after birth.
Paid leave for marriage, medical care, and family emergencies, plus new paid care leave introduced by recent reforms.
Social security pays a temporary-disability benefit after a waiting period, with the employer covering days 4 to 15. Convenios often top it up.
Dismissal must be justified (objective or disciplinary) and put in writing. An unjustified dismissal is 'unfair' (improcedente), triggering higher severance or reinstatement.
Objective dismissal pays 20 days' salary per year (capped at 12 months); unfair dismissal pays 33 days per year (capped at 24 months) for service after 2012.
Set by the convenio, commonly two months and up to six for qualified roles, with free termination during the period.
A 'falso autónomo' (false freelancer) who works like an employee can be reclassified, with back social-security contributions and penalties. Enforcement has increased.
*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.