Hiring Employees in Spain
In Spain, the monthly minimum wage is €1,184 with two additional payments of this amount being made in July and December each year. This equates to a minimum hourly rate of €9.26.
The Spanish income tax rates since March 2025 are as follows:
- For income up to €12,450 – 19% tax rate
- For income ranging from €12,451 to €20,200 – 24% tax rate
- For income ranging from €20,201 to €35,200 – 30% tax rate
- For income ranging from €35,201 to €60,000 – 37% tax rate
- For income ranging from €60,000 to €300,000 – 45% tax rate
- For income over €300,000 – 47% tax rate
In Spain, the total amount contributed towards the state pension system is 28.3% of an employee’s salary, with the majority of this being paid by the employer (23.8%), and the remaining 4.7% being paid by the employee.
The standard working hours in Spain are 8 hours per day and 40 hours per week (the statutory maximum), usually from Monday to Friday.
Employee’s leave consists of several types:
- Statutory time off or annual leave, which is a minimum of 30 calendar days (or 22 working days) per year for full-time employees
- Public holidays (14 per year in Spain)
- Maternity, Paternity and Parental leave
- Sick leave
Termination of an employment contract in Spain is complex and is covered by several laws and any contractual obligations made at the time employment commenced.
Legally compliant dismissals come under Articles 49 to 56 of the Workers’ Statute and can include:
- Mutual agreement between the parties
- Employee resignation
- Disciplinary, objective or collective dismissal
- Expiration of temporary contract
All dismissals must follow specific procedures to ensure compliance with labour laws which include, but are not limited to, a minimum notice period, written notification, severance pay and a settlement agreement.