Spain
Hire Employees & Contractors

Spain

Compliantly hire your distributed team members in

Spain

Person working on laptop

Hiring in

Spain

isn't so simple. Borderless can help.

To hire new employees in

Spain

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Spain

while staying fully compliant with local laws and compliance.

Primary Language

Spanish, Catalan

Currency

Euro (€, EUR)

Payroll Frequency

Monthly

Public Holidays

14 days

Employer Taxes

30.40%

Cost of Living Index

#53, 50.6

Statutory Leave

30 days

Sick Leave

18 months

Maternity Leave

16 weeks

Important: Risks of misclassification

In many countries like

Spain

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in Spain is €1,125.80 per month.

Overtime Pay

The standard working week is 40 hours per week, eight hours per day. Employees are not allowed to work more than 80 hours of overtime per year. If an employee works overtime, they are entitled to 175% of their regular pay.

Additional Pay

A 13th month bonuses are not mandatory, but customary. It depends on the collective bargaining agreement.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 21.4%: General social security funds
  • 5.5%: Unemployment
  • 0.2: Salary guarantee fund
  • 0.6%: Vocational training

Employee Costs & Taxes

  • 4.8%: General social security
  • 1.55%: Unemployment
  • 0.1%: Vocational training

Employment Information

Termination Process

In general, Spanish employers can provide any reasonable reason for terminating an employee. Any dismissal of an employee who has been with the company for more than six months must be "socially justified" by the following:

Employee dismissal without cause for disciplinary reasons, such as theft or any other serious misconduct;

Ordinary dismissal with notice based on economic factors related to production, work organization, business operation, and redundancy.

Notice period

The statutory notice period for an employer is determined by the reason for dismissal and the collective bargaining agreement that governs the employment contract. The company must provide 15 days prior notice for dismissals due to economic factors related to production, work organization, the proper operation of the business, or structural factors. Employees must generally provide 2-3 weeks' notice when resigning, depending on collective bargaining agreements.

Probation Period

The establishment of a probationary period is not required by Spanish labor law. The applicable CBA specifies the maximum probationary periods that may be agreed upon with employees. It is possible to agree on different probationary periods with employees for the same professional category if there is a justified reason (for example, experience, training, languages, etc.) and provided that you respect the probationary period limits established in the CBA.

Severance Details

Employer non-voluntary dismissal for non-disciplinary reasons: 20 days' pay per year of service (proportional if under one year).

Benefits of working in a country abroad

Borderless Benefits Packages in

Spain

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

Spain

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo