Payroll in Spain

Thinking about hiring in Spain? To stay compliant and keep things running smoothly, you’ll need to understand the local rules around HR, payroll, social security, and taxes. Discover the key information laid out for you below.

HR and labor laws in Spain

When you’re hiring in Spain, it’s crucial to understand local labor laws. From contracts and working hours to leave entitlements and dismissal procedures, here’s what you should know about specific laws in Spain.

Employment contracts

Spain offers several types of employment contracts, including permanent, temporary, and part-time agreements.

Working hours

The maximum standard workweek is typically 40 hours, with a minimum rest period of 12 hours between workdays.

Vacation days

Employees are entitled to at least 30 calendar days of paid vacation per year.

Social security in Spain

The social security system in Spain acts as a safety net for your employees, offering protection in key moments throughout their careers and lives. It’s designed to provide financial support during live events like illness, maternity, unemployment or retirement. Discover how the social security system works in Spain:

Contributions

Both employers and employees are required to contribute to the social securitysystem, which covers pensions, unemployment benefits, and healthcare.

Retirement

The statutory retirement age is gradually increasing to 67, depending on the employee’s birth year and years of contributions.

Workplace protections

Creating a fair and safe workplace matters. These laws help protect your employees in Spain:

Anti-discrimination

Spanish law enforces strict regulations prohibiting workplace discrimination based on gender, race, age, disability, and other protected categories.

Health and safety

Employers must provide a safe working environment and take steps to minimize health risks for employees.

Tax regulations in Spain

Taxes can be tricky. Understanding how the system works in Spain, helps you avoid surprises and stay compliant. Here are some tax basics to keep in mind:

Income tax

Spain uses a progressive tax system with rates that vary based on income. These rates are updated annually.

Value-added tax (VAT)

The standard value-added tax rate is 21%, with reduced rates of 10% and 4% for specific goods and services.

Paybix helps you managing your payroll in Spain

Running global payroll takes local knowhow. With Paybix, you’ll get expert support, tailored to each country your business in situated in. Thanks to our unified and digital platform, you gather clear insight in labor costs and cross-country payroll. You benefit from a 30% more efficient payroll process, including global reporting and core HR data management. Hassle-free, user-friendly and easy integrated with local payroll providers.

To ensurefull compliance with the latest regulations, Paybix consults with local legal partners and payroll providers. Get in touch with our experts. We provide you with accurate and up-to-date information.

Ready to optimize your payroll processes? Contact us. Book your free and personalised demo. Discover our data-driven solutions for your business success.

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