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Spain Hiring Guide

Hire compliantly in Spain. Navigate employer social security contributions exceeding 30%, a 14-payment salary structure and labour reforms where dismissal costs are among the highest in Europe.

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Capital

Madrid

Language

Spanish

Average Salary

EUR 2,300

Payroll Cycle

Monthly

Employer Cost

30-33%

Paid Leave

22 days

Public Holidays

14 days

Tax Rates

19-47%

Spain Guides

Hiring guides covering regulations, contributions and costs specific to Spain. Updated for 2026.

Best Employer of Record in Spain

Spain’s employer social security contributions exceed 30% of gross salary and apply to a 14-payment structure. A provider that budgets on 12 months or uses a flat “European average” rate will underestimate annual costs by thousands of euros per employee.

Our assessment of providers in Spain evaluates Seguridad Social accuracy, convenio colectivo awareness, IRPF withholding and regional tax compliance.

Best EORs in Spain

Before You Hire in Spain

Employer social security runs ~30-33% of gross salary. The general contingencies rate alone is 24.1%. Add unemployment (5.5%), FOGASA (0.2%), training (0.6%), occupational accident insurance (~1.5%) and the Intergenerational Equity Mechanism (0.75% in 2026), and total employer cost exceeds 30%.
Salaries are paid 14 times per year. Two extra payments (pagas extraordinarias) are mandatory, typically in June and December. Social security contributions apply to all 14 payments. Some companies prorate these into 12 monthly payments, but the obligation is the same.
The SMI (minimum wage) rose to EUR 1,184/month (14 payments) in 2025. The 2026 SMI is under negotiation at time of writing but is expected to increase. The SMI sets a floor for social security minimum contribution bases across all professional categories.
Convenios colectivos (collective bargaining agreements) override base law. Sector-specific agreements set minimum salaries, working hours, leave and benefits that often exceed the statutory minimums. Your EOR must identify and apply the correct convenio for each role.
Dismissal costs are high and structured by type. Objective dismissal (restructuring): 20 days’ salary per year of service, capped at 12 months. Unfair dismissal: 33 days per year, capped at 24 months. If a court finds the dismissal procedurally flawed, the higher rate applies automatically.

Why hire in Spain

Salaries are 30-40% below Northern European equivalents

A mid-level software engineer in Madrid or Barcelona earns EUR 35,000-45,000. The same role in Amsterdam, Munich or London commands EUR 55,000-75,000. Even after adding 30%+ employer charges, Spain remains cheaper for equivalent talent.

14 public holidays plus regional holidays reduce scheduling pressure

Spain's generous holiday calendar means employees take regular breaks throughout the year. Combined with 22 working days of annual leave, this creates a workforce that is less prone to burnout and more productive during working periods.

Time zone and cultural alignment with Latin America

Spanish-speaking talent in Spain covers European business hours while sharing language and cultural fluency with Latin American markets. For companies operating across both continents, hiring in Spain creates a natural bridge.

Social security contributions cap at EUR 5,101/month base

For high earners, employer contributions are calculated only up to EUR 5,101.20/month (2026). A senior hire at EUR 8,000/month costs the same in social security as one at EUR 5,101. The cap limits employer cost exposure on executive compensation.

Key Employment Facts

Spain's 14-payment structure, high employer social security and convenio colectivo system make it one of the more complex European markets for payroll, but the contribution cap benefits employers hiring senior roles.

Key Employment Facts
Minimum Wage (SMI)	EUR 1,184/month (14 payments, 2025; 2026 pending)
Probation Period	2 months (6 months for qualified technicians)
Standard Working Hours	40 hours/week (annual max 1,826 hours)
Paid Annual Leave	22 working days (30 calendar days)
Notice Period	15 days (objective dismissal); per convenio otherwise
14th Salary	Mandatory (pagas extraordinarias, typically June + December)
Sick Leave	Days 4-15: 60% employer-paid; day 16+: 60-75% via Social Security
Maternity Leave	16 weeks at 100% via Social Security

Good to Know: Spain’s working hour limit is moving. The government has been negotiating a reduction from 40 to 37.5 hours per week, potentially effective in 2025 or 2026. If enacted, this would affect overtime calculations, annualized hours agreements and convenio colectivo terms. Check current status before finalizing contracts.

What to Watch When Hiring in Spain

The IEM adds a new escalating cost layer through 2032

The Intergenerational Equity Mechanism rose to 0.90% in 2026 (0.75% employer, 0.15% employee). It will increase annually until stabilizing at 1.2% in 2032. This is on top of existing social security rates, not included in older cost guides.

A solidarity contribution now applies to high earners

Salaries exceeding the maximum contribution base (EUR 5,101.20/month) face an additional progressive surcharge: 1.15% on the first 10% above the cap, 1.25% on the portion between 10-50% above, and 1.46% above that. These rates increase annually through 2045.

IRPF rates vary by autonomous community

Income tax in Spain combines national and regional brackets. An employee in Madrid pays different IRPF than one in Catalonia or Andalusia on the same salary. Your payroll must apply the correct regional rates based on each employee's place of fiscal residence.

Temporary contracts are heavily restricted since the 2022 reform

The 2022 labour reform virtually eliminated the old temporary contract (contrato temporal). Fixed-term contracts now require specific justification (production circumstances or substitution). Unjustified use converts automatically to permanent, with the associated dismissal cost protections.

Employer Costs and Employee Taxes in Spain

Spain’s employer contributions exceed 30% of salary, among the highest in the EU. The EUR 5,101.20 cap helps, but the new solidarity contribution offsets it.

Employer Contributions (2026)
Contribution	Employer Rate
General Contingencies (pension, healthcare)	24.1%
Unemployment Insurance	5.5% (permanent contracts)
FOGASA (Wage Guarantee Fund)	0.20%
Professional Training	0.60%
Occupational Accident Insurance	~1.5% (varies by risk)
IEM (Intergenerational Equity Mechanism)	0.75%
Total Employer Cost	~30.65% + accident insurance

Employee Taxes
Tax / Contribution	Employee Rate
IRPF (income tax, progressive)	19-47% (varies by region)
Social Security (employee share)	~6.5% of gross
IEM (employee share)	0.15%

Good to Know: For a mid-level employee earning EUR 3,000/month (14 payments = EUR 42,000/year): employer social security runs approximately EUR 12,873/year (30.65%). Add accident insurance (~EUR 630) and you reach ~EUR 13,500 in annual employer charges. Total cost: ~EUR 55,500/year or EUR 4,625/month spread across 12. The contribution cap means a senior hire at EUR 7,000/month costs only marginally more in social security than one at EUR 5,100, making Spain surprisingly cost-efficient for executive roles.

Public Holidays in Spain (2026)

Spain has 14 public holidays per year: 8 national, 2 regional, and 2 municipal. The list below shows national holidays only.

Date	Holiday
January 1	New Year’s Day (Ano Nuevo)
January 6	Epiphany (Dia de Reyes)
April 2	Holy Thursday (regional, most communities)
April 3	Good Friday (Viernes Santo)
May 1	Labour Day (Dia del Trabajo)
August 15	Assumption of Mary (Asuncion de la Virgen)
October 12	National Day (Fiesta Nacional de Espana)
November 1	All Saints’ Day (Dia de Todos los Santos)
December 6	Constitution Day (Sunday, substitute Dec 7 in most regions)
December 8	Immaculate Conception (Inmaculada Concepcion)
December 25	Christmas Day (Navidad)

Good to Know: Every employee in Spain gets 14 paid public holidays, but 3 of them (the regional and municipal choices) vary by location. A team split across Madrid, Barcelona and Seville will have different holiday calendars. Your payroll and leave management must track the correct holidays per employee’s work location, not just apply a single national list.