What to know about hiring and paying in Spain

With Vensure Global you can expand your global workforce to Spain with ease. We help you find, hire, and pay employees accurately and compliantly, ensuring full alignment with local labor laws, payroll regulations, and employer requirements.

Quick Facts

Currency

Euro

Capital

Madrid

Primary Language(s)

Spanish, Catalan, Galician

Payroll Cycle

Monthly

Population

48.3 Million

Value Added Tax (VAT)

21%

Expanding into Spain

Thinking about hiring in Spain? This guide covers the key employment laws, payroll rules, required benefits, and compliance considerations for employers. Explore everything you need to hire and manage talent in Spain with confidence.

Payroll & Working Hours

Minimum Wage Requirements

Minimum Interprofessional Wage (SMI) for 2025 at €1,184 per month in 14 payments

Working hours

In many sectors, especially traditional office environments, the workday often follows a split schedule:

  • Morning: 8:30–9:00 AM to 2:00 PM
  • Afternoon: 4:00–5:00 PM to 8:00 PM

This structure accommodates the traditional siesta break, though continuous workdays (without a long midday break) are increasingly common in urban and international workplaces.

Overtime Pay

Overtime must be compensated either through:

  • Additional pay (commonly at 175% of the regular hourly rate), or
  • Equivalent time off.

Overtime is voluntary for employees unless contractually agreed. Industry-specific agreements may set stricter limits or different compensation terms.

Maximum Hours

Employees may work up to 80 overtime hours per year, unless otherwise specified in a collective bargaining agreement.

Break Requirements

Workday Breaks:

  • For workdays exceeding 6 hours, employees are entitled to a minimum 15-minute break.
  • This break is only considered paid working time if specified in the employment contract or collective agreement.
  • For employees under 18 years old, the break is extended to 30 minutes for workdays longer than 4.5 hours.

Daily Breaks:

  • Employees must have a minimum of 12 consecutive hours of rest between the end of one workday and the beginning of the next. This ensures adequate recovery time between shifts.

Weekly Breaks: Workers are entitled to at least one and a half uninterrupted days of rest per week. This typically includes Sunday and either Saturday afternoon or Monday morning.

  • Flexibility: Collective bargaining agreements may allow for the accumulation of rest periods over a maximum of 14 days, enabling alternative scheduling arrangements.

Hiring and Onboarding Information​

Background Checks

Background checks are legal in Spain, but they must comply with data protection laws (notably the GDPR and Spain’s Organic Law on Data Protection).

Explicit written consent from the candidate is required.

Employers must avoid any form of discrimination during the hiring process

Common Checks:

  • Criminal records: Only allowed if relevant to the job and with the candidate’s consent.
  • Employment and education history: Permitted with consent.
  • Credit history: Rare and typically only for financial roles.
  • Social media: Can be reviewed, but must not be discriminatory.

Verification and New Hire Reporting

Spanish law requires employers to:

  • Register the employee with the Social Security system before the employee starts work.
  • Notify the Public Employment Service (SEPE) of the new hire. This is typically done through a “Contrat@ platform” submission.
  • Ensure that the employment contract is filed with SEPE within 10 days of signing.

Onboarding Process & Documentation

Collecting Required Documentation

Upon hiring a new employee, Spanish employers must collect and verify the following:

  • National ID (DNI/NIE) or passport (for foreign workers)
  • Social Security Number (Número de la Seguridad Social)
  • Bank account details for salary payments
  • Tax identification number (NIF)
  • Academic and professional qualifications, if relevant
  • Work permit or visa, if the employee is a non-EU national

Employers must ensure that all documents are valid and up to date. For foreign workers, additional immigration compliance steps may apply

Providing Employee Rights and Obligations

Employers are legally required to inform new hires of their rights and obligations, including:

  • A written employment contract outlining:
    • Job title and duties
    • Type and duration of the contract
    • Salary and benefits
    • Working hours and location
    • Applicable collective bargaining agreement
  • Employee handbook or internal policies, if applicable
    • Health and safety regulations
    • Data protection rights under GDPR
    • Social security contributions
    • Leave entitlements (e.g., annual, sick, parental)

This information must be provided in a clear and accessible format, often during the first days of employment

Benefits Packages​

Healthcare

Spain operates a universal public healthcare system—the Sistema Nacional de Salud (SNS)—which is funded through Social Security contributions. All legally employed individuals and their dependents are entitled to access this system.

Employer Responsibilities

  • Employers must ensure that all employees are registered with the Social Security system, which automatically grants access to public healthcare.
  • This registration is a legal requirement and must be completed before the employee begins work.

Private Health Insurance

While not mandatory, private health insurance is a common and valued supplementary benefit:

  • Often provided by employers to enhance job offers, especially in competitive sectors like tech, finance, and multinational firms.
  • Offers faster access to specialists, shorter wait times, and broader provider networks.

Employer Contributions

  • Employers typically cover 100% of the premium for the employee.
  • Coverage for family members may also be included, though employees often contribute to the additional cost.

Employee Expectations

  • Many employees expect private health insurance as part of a competitive benefits package.
  • It is seen as a valuable complement to the public system.

Compliance

  • The only mandatory requirement is Social Security registration.
  • If private insurance is offered, employers must comply with the terms of the insurance contract and data protection laws (e.g., GDPR).

Retirement

Spain’s retirement system is primarily based on a public pension scheme, funded through mandatory Social Security contributions by both employers and employees.

Public Pension System

  • Provides a state pension upon retirement, calculated based on the employee’s contribution history and earnings.
  • Employers are legally required to make these contributions on behalf of their employees.

Private Pension Plans

  • Voluntary but increasingly common, especially in large companies or sectors with strong collective bargaining agreements.
  • Used to supplement the public pension and enhance retirement security.

Types of Private Plans

  • Defined Contribution Plans: Contributions are made to individual accounts by the employer and/or employee.
  • Defined Benefit Plans: Less common; provide a predetermined retirement benefit.

Employer Contributions

  • Employers may contribute a fixed amount or percentage of salary.
  • Employees can also make voluntary contributions.

Employee Expectations

  • While the public pension provides a baseline, many employees—especially higher earners—value private pension plans as a key part of long-term financial planning.

Compliance

Employers offering private pension plans must comply with Spanish pension regulations, including:

  • Plan registration
  • Governance and transparency
  • Reporting and employee communication

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Information​

Employment Contract Details

Spanish labor law primarily distinguishes between indefinite and fixed-term employment contracts. Indefinite contracts are the standard and preferred form, while fixed-term contracts are only allowed under specific, legally defined conditions.

  • Indefinite Contracts: These are open-ended contracts with no predetermined end date. They offer job stability, and termination requires just cause or severance. They can be either full-time or part-time.
  • Fixed-Term Contracts: These are used for temporary roles, such as project-based or seasonal work. The contract must clearly state the reason for its temporary nature and the expected duration. There are strict legal limits on how long these contracts can last and how often they can be renewed. If these rules are violated, the contract may automatically convert to an indefinite one.
  • Training Contracts: These are designed for apprenticeships or vocational training. They combine work with structured learning and are subject to specific age and duration requirements.
  • Part-Time Contracts: These can be either indefinite or fixed-term but involve fewer working hours than full-time contracts. They must specify the number of hours and how they are distributed. Rights and benefits are generally proportional to those of full-time employees.

Note: Recent legal reforms have significantly restricted the use of fixed-term contracts to reduce labor market instability, reinforcing indefinite contracts as the default.

Essential Clauses

  • Identification of Parties: Full legal names, addresses, and identification numbers of both the employer and the employee.
  • Start Date: The date the employment relationship begins.
  • Workplace Location: The primary location where the work will be performed.
  • Job Title and Description: A clear outline of the employee’s role, duties, and responsibilities.
  • Contract Duration: Whether the contract is indefinite or fixed-term. If fixed-term, it must include the justification and expected end date.
  • Working Hours: The total number of hours per week or year, and how they are distributed (daily or weekly schedule), especially important for part-time contracts.
  • Remuneration: Details of the salary structure, including base pay, bonuses, and payment frequency. This must comply with minimum wage laws and any applicable collective agreements.
  • Annual Leave: The amount of paid annual leave, which must be at least 30 calendar days per year.
  • Collective Bargaining Agreement: Reference to the applicable agreement, if any.
  • Probationary Period: If applicable, the duration of the probationary period must be specified.

Probation Period

Probationary periods are typically defined by the applicable Collective Bargaining Agreement. For most non-specialized roles, the standard duration ranges from 2 to 3 months, while for highly qualified or senior positions, the maximum probation period can extend up to 6 months.

Visas

  • Short-Stay Visa (Type C): For tourism/business (≤90 days); requires insurance, proof of funds, etc.
  • Long-Stay Visa (Type D): For work/study (>90 days); needs job/school offer, health and police clearance.
  • Work Visa: Requires job offer and employer sponsorship.
  • Business Visa: Needs invitation and financial proof.
  • Student Visa: Requires acceptance letter and proof of funds.
  • Process: Determine visa type → gather documents → apply → attend interview → await decision.

Independent Contractors

Independent contractors (autónomos) are self-employed individuals who provide services to clients without being part of the client’s workforce.

Legal Requirements

  • Must register with:
    • The Spanish Tax Agency (Agencia Tributaria).
    • The Social Security system as a self-employed worker.
  • Must issue invoices and pay quarterly taxes (income tax and VAT, if applicable).

Key Distinctions from Employees

To avoid misclassification, Spanish law uses several criteria to distinguish contractors from employees:

  • Autonomy: Contractors control how and when they work.
  • No subordination: They are not under the direct control of the client.
  • Own tools and resources: Contractors typically use their own equipment.
  • Multiple clients: They often work for more than one client.

False Self-Employment (Falsos Autónomos)

  • Hiring someone as a contractor while treating them like an employee is illegal.
  • If detected, the employer may face:
    • Fines
    • Back payments for Social Security contributions
    • Reclassification of the worker as an employee

Time Off Policies​

Paid Time Off

Employees in Spain are entitled to 30 calendar days (equivalent to 22 business days) of paid annual leave per year. Collective Bargaining Agreements (CBAs) may grant additional vacation days.

  • Use of Leave: Employees are expected to use their full vacation entitlement within the calendar year.
  • Carryover Exceptions: If leave cannot be taken due to justified reasons (e.g., medical incapacity), unused days may be carried over and used up to 18 months after the end of the year in which they were accrued.

Public Holidays

Employees in Spain are entitled to 14 paid public holidays per year, which include a combination of national, regional, and local holidays. The 14-day entitlement typically consists of:

  • 8 national holidays observed across the country
  • 4 regional holidays set by each autonomous community
  • 2 local holidays designated by individual municipalities

Employees should consult their local authority or regional government to confirm the specific dates applicable to their location.

Note: If a public holiday falls on a weekend, it is not automatically moved to a weekday and may be lost unless otherwise stipulated by local regulations or collective agreements.

  • New Year’s Day
  • Epiphany
  • Shrove Tuesday (Extremadura)
  • Andalusia Regional Holiday (Andalusia)
  • Balearic Islands Regional Holiday (Balearic Islands)
  • St Joseph’s Day (Castile-La Mancha, Murcia & Valencia)
  • Maundy Thursday (Various regions*)
  • Good Friday
  • Easter Monday (Various regions**)
  • Eid al-Fitr (Melilla)
  • Regional Holiday (Aragon, Castile and Leon)
  • Labor Day
  • Madrid Regional Holiday (Madrid)
  • San Isidro (Madrid)
  • Galician Literature Day (Galicia)
  • Canary Islands Regional Holiday (Canary Islands)
  • Corpus Christi (Castile-La Mancha)
  • Castile- La Mancha Regional Holiday (Castile-La Mancha)
  • La Rioja Regional Holiday (La Rioja)
  • Murcia Regional Holiday (Murcia)
  • San Antonio (Ceuta)
  • Eid al-Adha (Ceuta & Melilla)
  • St John’s Day (Catalonia & Valencia)
  • National Day of Galicia (Galicia)
  • Saint James’ Day (Various regions)
  • Our Lady of Africa (Ceuta)
  • Assumption of Mary
  • Day of Ceuta (Ceuta)
  • Asturias Regional Holiday (Asturias)
  • Extremadura Regional Holiday (Extremadura)
  • National Day of Catalonia (Catalonia)
  • Day of Melilla (Melilla)
  • Valencia Regional Holiday (Valencia)
  • Fiesta Nacional de Espana
  • All Saints’ Day
  • Virgin of Almudena (Madrid)
  • San Francisco Javier (Navarre)
  • Constitution Day
  • Immaculate Conception (Various regions***)
  • Christmas Day
  • St Stephen’s Day (Balearic Islands & Catalonia)

Bereavement

Employees are entitled 2 days paid (or 4 days if travel is required) in an event that an intimate family member’s death.

Leave Policies​

Maternity Leave

Pregnant employees are entitled to 16 weeks of paid maternity leave, extendable to 18 weeks for multiple births or complications.

  • 6 weeks of compulsory leave immediately after birth
  • 10 weeks of flexible leave (can be taken full-time or part-time within 12 months)
  • Additional Leave: 2 extra weeks for disability, adoption, or foster care cases.
  • Breastfeeding Leave: Commonly taken as 2 additional weeks post-maternity leave.
  • Pay: 100% of the salary (up to the Social Security cap), paid by the Social Security System.

Paternity Leave

Fathers (or second parents) are entitled to 16 weeks of paid paternity leave, extendable to 18 weeks for multiple births.

  • Eligibility: Must have contributed to Social Security for 180 days in the past 7 years or 360 days total.
  • Structure:
    • 6 weeks of compulsory leave after birth
    • 10 weeks of flexible leave (full-time or part-time until the child turns one)
  • Pay: 100% of the salary (up to the Social Security cap), paid by the Social Security System.
  • Same-Sex Couples: Both parents are entitled to paid leave, provided they have legal ties to the child.

Parental Leave

Employees may take unpaid parental leave:

  • Up to 8 weeks total
  • Can be taken continuously or in blocks
  • Must be used before the child turns 8 years old
  • Requires 10 days’ notice

Sick Leave

Employees must provide a medical certificate to qualify for sick leave benefits. Compensation is structured as follows:

  • Days 1–3: Unpaid
  • Days 4–20: Paid at 60% of the salary calculation base
  • Day 21 onward: Paid at 75% of the salary calculation base (up to 18 months, subject to INSS approval)

Employers cover sick pay until day 15. From day 16, the employer continues payments but can reclaim them from the Social Security Administration (INSS).

Since April 2023, medical leave reports are sent electronically via the INSS EMPRESAS system.

Termination Information

Termination Requirements

At this time, Vensure does not have termination requirement details available. For details about termination notices, see Notice Period below.

Notice Period

In Spain, the standard notice period for terminating an employment contract is 15 calendar days, unless otherwise specified in a collective bargaining agreement or individual contract.

  • Employer Option: Employers may choose to provide payment in lieu of notice, compensating the employee for the notice period instead of requiring them to work it.
  • Probationary Period: During the probationary period, no notice is required by either party unless otherwise agreed.

Severance Pay

Fair Redundancy (Objective Dismissal)

  • Employees are entitled to 20 days of salary per year of service, capped at 12 months’ pay.
  • In some cases, 33 days per year may apply depending on the contract date and legal interpretation.

Collective Redundancy

  • In collective layoffs, severance is typically negotiated during the consultation process and may exceed the statutory minimum.

Disciplinary Dismissal (Fair Cause)

  • If the dismissal is deemed fair and based on serious misconduct, no severance is owed.

Severance calculations are based on the employee’s daily salary and length of service, and disputes may be resolved through labor courts.

Unemployment Insurance

To qualify for unemployment benefits (prestación por desempleo), individuals must meet the following criteria:

Involuntary Unemployment

  • Dismissal, end of a fixed-term contract, or reduction/suspension of working hours for economic or organizational reasons.
  • Voluntary resignation generally disqualifies a person from receiving benefits unless followed by a qualifying event after a waiting period

Social Security Contributions

  • Under 26 years old: At least 12 months of contributions in the last 6 years.
  • 26 and older: At least 6 months for a first claim, or 4 months for subsequent claims, within a 6-year window.

Jobseeker Registration

  • Must register with the Public Employment Service (SEPE) and actively seek employment.

Benefit Amount and Duration

  • The benefit amount is based on the contribution base (average salary) over the previous 180 days.
  • Typically:
    • First 6 months: 70% of the regulatory base
      • After 6 months: 50% of the regulatory base
  • Duration depends on the length of contributions, ranging from 4 months to 2 years.

Key Changes

Mandatory Tax Declaration

  • All recipients must now file an annual income tax return. Failure to do so will result in the loss of benefits.

Employment Support Supplement

  • Starting April 1, 2025, workers earning less than €1,350/month can combine unemployment benefits with part-time wages, aimed at supporting long-term unemployed individuals.

Stronger Compliance Measures

  • Enhanced monitoring of job-seeking activity and benefit eligibility.
  • Digital integration with tax and employment records to prevent fraud.

Additional Notes for Expats

  • Legal foreign residents, including EU/EEA nationals, are eligible if they meet the same contribution and registration requirements.
  • Expats must also comply with Spanish tax laws to maintain benefit eligibility.

Workplace Safety​

Anti-Discrimination Practices

Spanish labor legislation strictly prohibits discrimination in employment based on a broad range of protected characteristics. These protections apply throughout the entire employment lifecycle—from recruitment and hiring to working conditions, promotion, training, and termination.

Employers are prohibited from discriminating against individuals based on:

  • Race or ethnic origin
  • Religion or belief
  • Sexual orientation
  • Age
  • Disability
  • Gender (including gender identity and expression)
  • Marital or civil status
  • Family situation (including pregnancy and parental status)
  • Language
  • Political opinion
  • Trade union membership or activity
  • Socio-economic background
  • Nationality or place of origin
  • Any other personal or social condition or circumstance

Workplace Safety Standards

In Spain, employers have a legal obligation to ensure the health and safety of their employees in all aspects of their work. This duty includes the prevention of occupational risks and the protection of workers from potential hazards.

Core Employer Obligations

  • Conduct regular risk assessments to identify workplace hazards.
  • Implement appropriate preventive and protective measures.
  • Provide employees with necessary personal protective equipment (PPE).
  • Offer health and safety training tailored to job-specific risks.

Organized Risk Prevention Systems

Companies are required to establish a structured system for managing occupational risks. Depending on the size and nature of the business, this may involve:

  • Appointing internal prevention resources (e.g., safety officers).
  • Contracting external prevention services.
  • Using a hybrid model combining both internal and external resources.

Employee Rights and Responsibilities

Employees also play a role in maintaining workplace safety. They are expected to:

  • Follow safety protocols and instructions.
  • Use protective equipment correctly.
  • Report unsafe conditions or incidents.

Importantly, workers have the right to interrupt their work and leave the workplace if they face a serious and imminent risk to their health or safety.

Workers’ Compensation

Coverage and Eligibility

  • All employees registered with the Spanish Social Security system are covered.
  • Coverage includes workplace accidents, occupational diseases, and injuries sustained during commutes (known as in itinere accidents).
  • Both Spanish nationals and foreign workers legally employed in Spain are eligible.

Employer Obligations

  • Register employees with the Social Security system.
  • Pay into a mutua colaboradora (a mutual insurance company that manages work-related injury claims).
  • Report any workplace accident or occupational illness to the authorities within 5 working days.

Benefits Provided

  • Medical Care: Full coverage for treatment, rehabilitation, and medication.
  • Temporary Disability: Employees receive 75% of their base salary from the day after the accident or diagnosis.
  • Permanent Disability: Compensation depends on the degree of disability (partial, total, absolute, or severe).
  • Death Benefits: In the event of a fatal accident, surviving family members may receive a pension or lump-sum payment.

Return to Work and Adaptation

  • Employers are encouraged to facilitate the return to work through job adaptations or reassignments if the employee cannot return to their previous role.
  • Under Law 2/2025, employers must assess the feasibility of accommodating workers with permanent disabilities before considering termination.

Labor Laws

Labor Law Sanctions

  • Statute of Workers (Estatuto de los Trabajadores): Core labor law regulating contracts, working hours, and rights. Sanctions include fines from €70 to over €225,000 depending on the severity of violations (e.g., illegal dismissals, unpaid wages).
  • Digital Time Registration Law (2025 Update): Mandates digital tracking of working hours to ensure compliance with reduced 37.5-hour workweek. Sanctions include fines for non-compliance or manipulation of records; labor inspectors can access data remotely
  • Unfair Dismissal Compensation Reform (2025): Aligns with EU standards for fair compensation. Employers must pay higher compensation for unjustified dismissals, potentially exceeding previous caps
  • Minimum Wage Law (SMI): Sets a national minimum wage (raised to approx. €1,190/month in 2025). Sanctions include fines and back payments for underpayment; repeat offenses may lead to business suspension
  • Occupational Risk Prevention Law: Requires employers to ensure workplace health and safety. Sanctions include fines up to €819,780 for serious breaches, criminal liability in cases of gross negligence.
  • Law on Equal Treatment and Non-Discrimination: Prohibits workplace discrimination based on gender, age, ethnicity, etc. Sanctions include administrative fines, civil liability, and potential criminal charges.
  • Parental Leave Law (2025 Extension): Expands paid parental leave rights. Sanctions include fines for denying leave or retaliating against employees who take it

Disclaimer

The information included in this section are provided for reference as samples of official documents derived from government agencies, law firms, or other entities. This content is not and may not be construed to be legal advice or to be a legal opinion on any specific facts or circumstances, or to be a comprehensive or all-inclusive compilation of facts potentially relevant to country, federal, state, or local laws. Any data referenced here is for informational purposes only. It is strongly recommended that any data you view, be carefully reviewed as well as any applicable changes in federal, state, and local laws, regulations, guidance, and guidelines set forth by the governing agencies, which may change at any time and in such instances will render some content in the above information void or inaccurate. Users should not rely on this content for editing and customization exclusively but should consult an attorney for legal guidance for proper and compliant drafting. You are solely responsible for compliance with all applicable laws and regulations.

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