Currency
Euro (EUR)
EOR IN Spain
The easiest way to Hire and Manage in Spain
Swivelt will take care of payroll, benefits, taxes, compliance, making it easier than ever to expand and manage your team in Spain
GET STARTED
EXPAND YOUR BUSINESS IN Europe
A guide to employing and growing your team in Spain
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Spain is a significant European market with a diverse economy spanning tourism, renewable energy, and manufacturing. Employment is governed by the Workers’ Statute and industry-specific Collective Bargaining Agreements (CBAs), which often set higher standards for wages and benefits. As of January 1, 2026, the gross monthly minimum wage (SMI) in Spain is EURO1,221.00 (if paid in 14 installments) or EURO1,424.50 (if prorated into 12 installments). A common practice is the “14-payment system,” where employees receive extra checks in July and December.
Employer Contributions
Social Security: ~23.60%
Unemployment Insurance: ~5.50%
Wage Guarantee Fund (FOGASA): ~0.20%
Professional Training: ~0.60%
Work Accident Insurance: ~2.05%
Total Employer Contribution: ~30%-31%
Employee Payroll Taxes
Social Security: ~6.35%-6.50%
Solidarity Contribution (for high earners): ~0.15%
Total Employee Contributions: ~6.5%-7%
Employee Income Tax Rates
Spain uses a progressive income tax system (IRPF). These are national marginal rates; regional variations may apply, and the total tax burden can vary by autonomous community:
Up to EURO12,450: 19%
EURO12,451 – EURO20,200: 24%
EURO20,201 – EURO35,200: 30%
EURO35,201 – EURO60,000: 37%
EURO60,001 – EURO300,000: 45%
Over EURO300,000: 47%
Statutory Leave
Employees in Spain are entitled to a minimum of 30 calendar days of paid annual leave per year. Spanish law also recognises public holidays, and collective agreements or employer policies may provide additional days off. Sick leave provisions include employer?paid wages after a short waiting period and social security benefits thereafter, subject to conditions in the law and applicable contracts.
Pregnancy and Maternity Leave
Female employees are entitled to 16 weeks of paid maternity leave at 100% of salary, provided social security contribution requirements are met. This leave is protected by law, and dismissal on grounds related to pregnancy or maternity is generally prohibited.
Paternity Leave
Fathers are entitled to 28 days of paid paternity and childcare leave, which includes three days of birth leave plus 25 days of paternity leave (or 32 days in the case of multiple births). These days are typically paid through social security or employer arrangements.
Work-Related Injury Leave
In addition to annual, maternity, and paternity leave, Spanish labour law provides for breastfeeding leave (e.g., one hour per day until the child reaches nine months old), and additional family care and special leave types covered under labour law or collective agreements. Employers must respect these leave rights and ensure continued accrual of benefits during approved time off.
Termination Process
Termination in Spain must comply with the Workers’ Statute. Dismissals generally must be based on objective or disciplinary grounds with justification. Employers may terminate contracts subject to this reasoning, and wrongful termination claims can lead to compensation or reinstatement. Severance pay varies based on cause and contract type
Notice Period
For objective dismissals, a minimum 15 days’ notice is typically required. In practice, notice periods (or severance in lieu) depend on contract terms, collective agreements, and specific circumstances such as length of service and type of dismissal. Employees resigning must also respect any notice period defined by contract or collective norms.
Probation Period
Probation periods in Spain are commonly agreed upon in the employment contract and can range from one to six months depending on role and agreement. During probation, either party may terminate with shorter notice as permitted under law.