Explore Our Unmatched Features that Elevate Your Hiring
Spain is a highly attractive business destination in Europe, boasting a robust economy, strategic location, and a highly skilled workforce. It offers diverse labor options, from blue-collar workers to highly educated professionals across fields like engineering, logistics, and IT. With a mix of local talent and international workers, Spain has one of the most versatile and competitive labor markets in Europe.
Facts & Stats
Labor Laws in Spain
In Spain, probation periods must be explicitly stated in the employment contract. The maximum probation period is 6 months for qualified technicians and 2 months for other employees. For companies with fewer than 25 employees, the probation period for non-qualified roles can extend to 3 months. During probation, either party may terminate the contract without notice or severance unless otherwise agreed.
Employees in Spain are legally entitled to a minimum of 30 calendar days of paid annual leave per year, which equals 22 working days. Annual leave cannot be replaced with financial compensation except upon termination. Leave accrues proportionally during the first year of employment and must be taken within the calendar year unless otherwise agreed.
The standard working time in Spain is 40 hours per week on average, calculated annually. The workweek usually runs from Monday to Friday. Employees are entitled to a minimum daily rest of 12 hours between shifts and at least one and a half consecutive days of weekly rest, typically including Sunday.
Overtime in Spain is voluntary unless stated otherwise in a collective agreement or employment contract. The legal limit is 80 overtime hours per year, excluding overtime compensated with rest time. Overtime must be either paid or offset with equivalent time off. Rates and compensation methods are often defined in collective bargaining agreements.
Spain sets a national minimum wage known as the Salario Mínimo Interprofesional (SMI). In 2025, the minimum wage is €1,080 per month, based on 14 salary payments per year, or the equivalent if paid monthly. The SMI applies to all employees regardless of sector, age, or contract type.
Employers in Spain are required to contribute to the Spanish Social Security system, covering pensions, healthcare, unemployment, and workplace accidents. Employer contributions typically range between 29% and 32% of the employee’s gross salary, depending on risk classification. Employees also contribute a smaller percentage through payroll deductions. Income tax (IRPF) is progressive and withheld monthly based on salary level and personal circumstances.
6.48%
Employees in Spain contribute 6.48% to Social Security under the General Regime, with small variations depending on contract type. This is separate from income tax withholding (IRPF), which depends on salary and personal circumstances.
30.57%
In Spain, employers pay Social Security under the General Regime at 30.57% of the contribution base, plus a variable rate for occupational accidents/work risks that depends on the job and sector. Contribution bases are capped annually.
Spain applies progressive income tax (IRPF). The final rate depends on both the state scale and the autonomous community scale, so outcomes vary by region. Savings income is also progressive, reaching 30% above €300,000 from 2025.
Spain’s public pension system is funded through Social Security payroll contributions collected from both employers and employees. These contributions finance retirement pensions and other benefits. Employers should treat pension funding as part of statutory Social Security costs, not a separate optional benefit.
Employment termination in Spain is strictly regulated under the Workers’ Statute. Employers must provide a valid legal reason for dismissal, follow formal procedures, and respect employee rights. Termination without proper justification or procedure can result in the dismissal being classified as unfair or void, leading to compensation or reinstatement.
Notice requirements depend on the reason for termination. For objective dismissals, employers must provide 15 calendar days’ notice or pay compensation in lieu. Disciplinary dismissals do not require notice but must be clearly justified in writing. Collective dismissals follow additional consultation procedures.
Severance pay in Spain depends on the type of dismissal. For objective dismissals, employees are entitled to 20 days’ salary per year of service, capped at 12 months. Unfair dismissals require 33 days’ salary per year of service, capped at 24 months. No severance is owed for valid disciplinary dismissals.
Spain’s leave rules are mainly set by the Workers’ Statute and can be improved by collective bargaining agreements. Employers must apply statutory minimums for annual leave and respect paid leave events (for example marriage, serious illness, bereavement, moving house, and public duties) with proper notice and documentation.
In Spain, employees generally have up to 14 paid public holidays per year, combining national, regional (autonomous community), and local holidays. The exact days vary by region and municipality, so employers should confirm the official calendar for the work location when planning staffing and payroll.
Frequently asked questions
What is the correct employment contract type to use in Spain?
In Spain, most hiring should use an indefinite contract by default, while fixed-term contracts require specific, legally justified reasons. Employers should also check the sector collective agreement, which can set extra rules on contracts and classifications.
What should an employer include in an employment contract in Spain?
In Spain, a written contract should clearly state job title, duties, pay structure, working hours, location, start date, probation terms (if any), and the applicable collective agreement. Clear documentation reduces disputes and helps demonstrate compliance in audits.
How long can the probation period be in Spain?
In Spain, probation must be written into the contract and is capped by law, commonly up to 6 months for qualified technicians and 2 months for other roles, with some limits depending on company size and collective agreement.
What are the legal working time and leave minimums in Spain?
In Spain, standard working time is an average of 40 hours per week (annual basis), and annual leave cannot be below 30 calendar days. Employers must also respect statutory daily and weekly rest rules and track time properly.
What are the key termination and severance rules in Spain employers must plan for?
In Spain, termination must follow a legally recognized ground and a formal written process. Severance depends on the dismissal type, and procedural errors can convert a dismissal into unfair dismissal, increasing employer costs and legal exposure.
