Employing in Spain.

Minimum wage

Spain's statutory minimum wage for 2026 is EUR 1,221 a month gross, paid 14 times a year (EUR 17,094 a year), or EUR 40.70 a day, for workers of any age.

EUR 1,221 per month (14 payments) · from 1 January 2026per month, gross, full-time, paid 14 times a year (EUR 17,094 a year) or EUR 40.70 per day; all ages

• EUR 40.70 per day or EUR 1,221 per month, for all activities, regardless of sex or age
• Annual comparison floor: EUR 17,094 (14 x EUR 1,221)
• Refers to the legal full working day; shorter hours are paid pro rata; pay in kind cannot reduce the cash amount
• Temporary workers whose service with the same company does not exceed 120 days: at least EUR 57.82 per legal working day (includes Sundays, public holidays and the two extra payments)
• Domestic workers paid by the hour: EUR 9.55 per hour actually worked
• Decree in force from 20 February 2026 with effect from 1 January 2026

Changes on 1 January 2027: A draft decree sets EUR 1,286 a month in 14 payments; it was open for public comment from 5 to 16 November 2026. Proposed Source: REAL DECRETO /2026, de X de X, por el que se fija el salario mínimo interprofesional para 2027.

Employer social security contributions

On a permanent contract, employers pay 30.65% of pay (common contingencies 23.60%, unemployment 5.50%, training 0.60%, wage guarantee fund 0.20%, intergenerational equity 0.75%) plus accident insurance, on pay up to EUR 5,101.20 a month.

30.65% plus accident insurance (permanent contract); cap EUR 5,101.20 per month · from 1 January 2026employer share, % of the contribution base up to the maximum base; general scheme (Régimen General), permanent contract

• Common contingencies 23.60% employer (4.70% employee; 28.30% total)
• Unemployment 5.50% employer on permanent contracts (1.55% employee); 6.70% on fixed-term contracts (1.60% employee)
• Wage guarantee fund (FOGASA) 0.20%, employer only
• Vocational training 0.60% employer (0.10% employee)
• Intergenerational equity mechanism (MEI) 0.75% employer (0.15% employee), on the common contingencies base
• Accident at work and occupational disease (AT/EP): premium tariff by activity, employer only; office-only staff 1.50% (IT 0.80% + IMS 0.70%)
• Maximum base EUR 5,101.20 per month for all groups; minimum bases from EUR 1,424.40 to EUR 1,989.30 per month (groups 1 to 7) or EUR 47.48 per day (groups 8 to 11)
• Solidarity contribution on pay above the maximum base (employer share): 0.96% on EUR 5,101.21 to 5,611.32; 1.04% on EUR 5,611.33 to 7,651.80; 1.22% above EUR 7,651.80 (totals 1.15%, 1.25%, 1.46%)
• Fixed-term contracts under 30 days: extra employer contribution of EUR 33.62 at the end of the contract

Our sum of the published rates: common contingencies 23.60%, unemployment 5.50%, vocational training 0.60%, wage guarantee fund 0.20% and intergenerational equity 0.75% make 30.65%; accident insurance comes on top.

Changes on 1 January 2027: The intergenerational equity contribution (MEI) rises to 1.00% (employer 0.83%) and the solidarity contribution on pay above the maximum base to 1.38%, 1.50% and 1.75%. The 2027 maximum base is not yet published. Published Source: Real Decreto Legislativo 8/2015 (LGSS), disposiciones transitorias cuadragésima tercera (MEI) y cuadragésima segunda (cotización adicional de solidaridad)

Payroll tax withholding and filing

The employer withholds income tax (IRPF) and files modelo 111 with the Tax Agency (AEAT) by the 20th after each quarter, or monthly for large companies, plus the annual modelo 190 in January.

Employer; modelo 111 quarterly by the 20th (monthly if prior-year turnover over EUR 6,010,121.04)income tax (IRPF) withholding return to the Agencia Estatal de Administración Tributaria (AEAT), https://sede.agenciatributaria.gob.es

• Quarterly: within the first 20 calendar days of April, July, October and January for the previous quarter
• Monthly: within the first 20 calendar days of the following month where the prior-year volume of operations exceeded EUR 6,010,121.04
• AEAT states these windows apply 'salvo que domicilies el pago' (with direct debit the window closes earlier)
• Annual summary modelo 190: 1 to 31 January of the following year
• Social Security: monthly settlement through the TGSS direct settlement system (Sistema de Liquidación Directa, via Sistema RED); data due by the penultimate calendar day of the payment period, contributions paid within the month after the month they accrue
• Work performed in the Basque Country: withholding is paid to the competent provincial (foral) tax authority, at the same rates

Salary payments a year and holiday allowance

Employees are entitled to two extra payments a year, one at Christmas, so pay is normally made in 14 instalments; a collective agreement may spread them across the 12 monthly payments.

14 (12 monthly + 2 extra payments)salary payments a year; the two extra payments may be spread over 12 months by collective agreement

• Two extra payments (gratificaciones extraordinarias) a year: one at Christmas, the other in the month set by collective agreement or agreement with worker representatives
• Their amount is set by collective agreement
• A collective agreement may prorate them across the 12 monthly payments
• The 2026 minimum wage is expressed as 14 payments of EUR 1,221 (EUR 17,094 a year)
• The minimum wage decree treats each of the two extra payments as at least 30 days' pay for short temporary contracts
• Pay periods for regular pay may not exceed one month (art. 29)

Paid annual leave

Employees are entitled to at least 30 calendar days of paid annual leave a year, which cannot be replaced by a payment; collective agreements or contracts may give more.

30 calendar daysminimum paid annual leave a year, counted in calendar days

• Length set by collective agreement or contract, never less than 30 calendar days
• Not replaceable by financial compensation
• Dates agreed between employer and employee in line with the collective agreement; the employee must know the dates at least two months in advance
• Leave that overlaps temporary incapacity may be taken later, within 18 months after the end of the year in which it accrued (other than pregnancy or birth-related cases, which have their own rule)

Sick pay

For ordinary illness there is no statutory benefit for days 1 to 3; the employer pays 60% of the benefit base on days 4 to 15, then Social Security pays, 75% from day 21.

Days 1-3 no statutory benefit; employer pays days 4-15; Social Security from day 16ordinary illness or non-work accident; 60% of the benefit base days 4 to 20, 75% from day 21; up to 365 days plus 180

• Benefit 60% of the regulatory base (previous month's contribution base per day) from day 4 to day 20, 75% from day 21
• Employer bears the benefit from day 4 to day 15 inclusive; from day 16 the INSS or the employer's mutual insurer (mutua) is responsible, but the employer generally pays it out with salary as a delegated payment (pago delegado)
• Eligibility for ordinary illness: 180 days of contributions in the previous five years
• Work accident or occupational disease: 75% from the day after the sick leave starts; the employer pays full salary for the first day
• Maximum duration 365 days, extendable by 180 days where recovery is expected
• Collective agreements may top up the statutory benefit (not part of the statutory rule)

Changes on 1 December 2026: Royal Decree-law 31/2026 adds two special sick-leave situations (a menopause-related disorder and injuries from gender violence), paid by Social Security from the day after sick leave starts. The employer still pays days 4 to 15 of ordinary illness. Published Source: Real Decreto-ley 31/2026, de 20 de octubre, para la mejora de la acción protectora de la Seguridad Social y de otras normas sociales.

Running payroll without a local entity

A foreign employer without a Spanish entity registers with the Social Security Treasury for a contribution account code and with the Tax Agency (form 036) for a tax number, then withholds income tax.

Possible without a local entity: TGSS employer registration (contribution account code) and AEAT NIF/census as withholderSocial Security: Tesorería General de la Seguridad Social; tax: Agencia Estatal de Administración Tributaria

• Social Security: the foreign company applies to the provincial office of the Social Security Treasury (TGSS) for a contribution account code (CCC) to register itself and enrol the worker (TGSS guidance for workers hired by foreign companies to work in Spain who lived in Spain before hiring)
• Employer registration uses form TA.6; a CCC is needed in each province of activity (form TA.7); online with a digital certificate
• Tax: non-residents without a permanent establishment must withhold IRPF on the employment income they pay (LIRPF art. 99.2; RIRPF art. 76.1.d)
• Non-residents paying income subject to withholding in Spain belong in the census of businesses, professionals and withholders (RGAT art. 3.2), via form 036; foreign entities receive a NIF starting with N
• Tax representative: non-EU residents must appoint a Spain-resident representative only in listed cases (for example a permanent establishment or when the AEAT requires it); EU residents are not listed

Pension

Retirement is covered by the contributory Social Security pension, funded through the common contingencies contribution; workplace pension plans are voluntary and there is no auto-enrolment scheme.

State Social Security pension; no mandatory workplace schemecontributory retirement pension funded through common contingencies contributions; occupational pension plans voluntary

• Contributory retirement pension: a lifetime pension once the worker reaches the set age and stops working
• Common contingencies contribution 28.30% (employer 23.60%, employee 4.70%), plus the MEI surcharge of 0.90% (employer 0.75%) that feeds the Social Security Reserve Fund
• Pension plans are set up voluntarily and never replace the Social Security pension; they are private and complementary
• Some collective agreements may include pension commitments (not checked)

Probation and notice

Without a collective agreement rule, probation may last up to six months for qualified technicians and two months for others (three in firms under 25 workers); objective dismissal requires 15 days' notice.

Probation max 6 months (qualified technicians) or 2 months (others); 15 days' notice for objective dismissalstatutory maxima where the collective agreement sets none; employer notice for dismissal on objective grounds

• Probation must be agreed in writing; collective agreements may set other limits
• Companies with fewer than 25 workers: up to three months for workers who are not qualified technicians
• Fixed-term contracts of up to six months: probation up to one month unless the collective agreement says otherwise
• Objective dismissal: written notice of the cause, severance of 20 days' pay per year of service (maximum 12 months' pay) and 15 days' notice; six paid hours a week to look for work during notice; missing notice means paying wages for the period
• Resignation: notice as set by the collective agreement or local custom
• Fixed-term contracts over one year: the party ending the contract gives at least 15 days' notice