Spain is a country in the Southwest corner of Europe. The Spanish economy is the fourth-largest in the Eurozone and the fifth-largest in the European Union. Spain is well known for its vast monuments, snowcapped mountains, stone castles, sophisticated cities, and cultural diversity. The total land area is 505,990 square kilometers, with 12,500 square kilometers of islands. Spain is bordered to the west by Portugal; to the northeast, it borders France, from which it is separated by the small principality of Andorra and by the great wall of the Pyrenees Mountains.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Spain.
Capital : Madrid | Currency : Euro (€, EUR) | Languages spoken : Spanish, Catalan, Basque, Galician |
Population : 47.33 million (2021 est.) | Minimum wage 2023 : €1000 (monthly) in 14 payments | Cost of Living index : $$$ (46 of 139 nations) |
Payroll Frequency : Monthly | VAT - standard rate : 21% | GDP - real growth rate : 5.1% (2021 est.) |
The national holidays mentioned below are valid for the year 2023.
There are 14 bank holidays (dias festivos), made up of eight national holidays which are non-substitutable and six chosen by the region and local municipality.
The approximate time for sharing the contract with an employee in Spain is 3 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal or external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
The maximum normal working time is 40 hours per week, computed yearly.
Overtime work is voluntary. The maximum number of overtime hours must not exceed 80 hours in a year. Overtime is compensated for either in the paycheque (which in no case may be less than the value of the ordinary hour) or by rest periods over the next four months.
The length of the probation period depends on several factors such as the education level of the incumbent and the size of the enterprise:
| Education level /Enterprise size | Probation period |
| Qualified technicians (college and junior college graduate specialists). | Must not exceed 6 months |
| Other workers | Must not exceed 2 months |
| Enterprises with less than 25 workers | Must not exceed 3 months for workers who are not qualified technicians |
| Fixed-term contracts not exceeding 6 months | Must not exceed 1 month |
Termination may be done at any time so long as the applicable notice period is respected.
| Termination Cause | Notice Period | Other details |
| Based on objective reasons | 15 days |
|
| Disciplinary dismissal | No notice period | A written notice is required, stating the facts that motivate termination and the date on which it will take effect. |
| Resignation | No statutory minimum notice period | General practice is 15 days. |
In Spain, the annual paid holiday period, which may not be replaced by economic compensation, is no less than 30 calendar days (22 working days). Some collective agreements establish higher minimums for annual leave.
Employees are entitled to sick pay in Spain if they have contributed to the social security system for at least 180 days in the five years prior to the illness. The sickness benefits are paid as follows:
| Duration of sick leave | Benefit | Paid by |
| First 3 days | No pay | Not applicable |
| Day 4 -15 | 60% of the calculation basis | Employer |
| Day 16- 20 | 60% of the calculation basis | The social security system (“Sistema Nacional de la Seguridad Social”) |
| Day 21 onwards | 75% of the calculation basis | The social security system |
The employer (once they receive the employee’s medical certificate within three days) is responsible for applying for the employee’s sick leave. In order to receive support, the employee will need a medical examination. A doctor from the Servicio Público de Salud (State Health Services) will certify their illness.
Workers are entitled to a leave of not more than three years to care for each child, whether conceived or adopted. During the first year of parental leave, a worker is entitled to job protection. After this period, the employee will be referred to a job of the same professional group or equivalent category.
In Spain, maternity leave is up to 16 weeks.
Of these 16 weeks:
The enjoyment of each weekly period or accumulation of periods must be communicated at least 15 days in advance. The full-time or part-time enjoyment of this period will require an agreement between the company and the worker.
During maternity leave, workers receive a maternity benefit administered by Social Security. The maternity benefit is the public welfare benefit to compensate the lost income for the employee due to the birth of a child, adoption, guardianship, or foster care.
To be entitled to maternity leave, the employee should qualify the following:
| Age of the Beneficiary | Minimum Period of Contribution |
| Under 21 years old | None |
| Between 21 and 26 years old | 90 days of contribution during the prior 7 years, or 180 days in total. |
| Over 26 years old | 180 days of contribution during the prior 7 years, or 360 days in total. |
If the employee does not fulfill all these requirements, she will be entitled to receive a birth grant.
The other parent (other than the biological mother) is entitled to up to 16 weeks of leave from social security. The first six weeks are mandatory and need to be taken after the baby’s birth. The other weeks can be taken before the child attains the age of one.
Paid leave is provided for the following reasons:
| Leave | Days |
| Marriage | 15 days |
| Bereavement, accident, serious illness, hospitalization, or surgical intervention without hospitalization that requires home rest, death of relatives up to the second degree of consanguinity or affinity. | 2 days |
| If travel is required for the above purposes | 4 days |
| Transfer of the habitual domicile | 1 day |
| Inexcusable duty of a public and personal nature, including the exercise of active suffrage | As per legal or conventional norms |
| Performing trade union duties | As per legal or conventional norms |
| Prenatal check-ups and preparation for childbirth and preparing for adoption | For the time necessary |
Handicapped Family Member Leave
The Workers’ Statute Act guarantees employees unpaid leave of up to two years to take care of a close family member on account of an accident, illness or disability where the dependent cannot fend for themselves and do not carry out any paid activity.
Voluntary leave
A worker with at least one year’s seniority in the undertaking has the right to be granted the possibility of being placed on voluntary leave for a period of not less than four months and not more than five years. This right may only be exercised again by the same worker if four years have elapsed since they took the voluntary leave previously.
Under the general regime, social security contributions are paid on salaries and wages. Benefits include the:
In Spain, people insured under the Sistema Nacional de la Seguridad Social (National Social Security System) and their beneficiaries are entitled to healthcare. Foreigners not registered or authorized as residents in Spain have the right to health protection and to healthcare under the same conditions as people with Spanish nationality.
The state healthcare coverage contains:
Accident Insurance
People who have suffered injuries or damage from an accident at work or occupational disease, can apply for benefits. In the event of an accident at work, the amount of the daily allowance is calculated at 75% of the daily calculation basis from the day after the accident. This allowance is paid by Mutua [mutual insurance company] or the Instituto Nacional de la Seguridad Social (INSS).
The employer pays a variable rate for occupational risk insurance. The rate ranges from 1.5% for office work, for example, to 8.5% for mining work or 7.6% for the construction sector.
Unemployment Insurance
A contributory benefit, commonly known as “el paro”, is awarded to people who are unemployed but committed to working and who have contributed for a minimum of 360 days during the six years before becoming unemployed.
Wage Guarantee Fund
The Wage Guarantee Fund is an autonomous entity that acts in case of insolvency of the employer, paying outstanding wages to the workers.
Intergenerational Equity Mechanism
This tax has the objective of distributing the cost of pensions among different generations of workers . In this way, the Government intends to fatten the pension piggy bank and ensure the collection of baby boom pensions. Employers contribute 0.5% whilst employees contribute 0.1%.
Professional Training
The Vocational Training System for employees aims at improving workers’ skills and company productivity as well as helping to meet labor market needs.
In Spain, the retirement pension depends on the age of the beneficiary and the contributions accumulated throughout their working life. Workers covered by the social security system will, upon reaching the pensionable age, be entitled to receive the corresponding retirement pension as long as they meet the requirements established in each case.
The minimum age for the retirement pension is currently:
All employees hired by WorkMotion’s Spanish partners are automatically insured via the Spanish Social Security system (“Sistema Nacional de la Seguridad Social”).
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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