Good to know
Local Currency: Euro (EUR)
Minimum Salary: 1,134 € gross/month over 14 months
In Spain, the salary is usually calculated over 14 months because the laws states that an employee must receive two annual bonuses.
Salary Payment: monthly
Salary Calculation: gross – social deductions.
Legal Working Hours: 40 hours/week
About Spain
The social security system in Spain protects workers in case of illness, accident, disability, old age, death, unemployment and family responsibilities.
There are two types of system:
- Protection for employees
- Protection for non-employees
Except for family benefits, the cash benefits of the social security system in Spain are mainly financed by social contributions. The state also contributes to the financing of contributory pensions and unemployment benefits.
For people who have not contributed enough to receive contributory social benefits, the non-contributory system provides a minimum coverage under means testing (unemployment benefits, old age and disability pensions, minimum subsistence income).
Ready to Benefit from Spanish HR & Payroll Experts?
Organisation
Social benefits for employees are administered by :
- the Instituto Nacional de la Seguridad Social (INSS)
which is in charge for the administration of social insurance and cash benefits, old age and disability pensions, survivors’ pensions, sickness and maternity benefits, family benefits and for assessing entitlement to health insurance. - the Tesorería General de la Seguridad Social (TGSS)
which is responsible for the registration of companies, affiliation and de-registration of workers. It ensures the financial administration of the system and manages the collection of contributions. - the Servicio Público de Empleo Estatal (SEPE)
which is responsible for employment, training, retraining and the payment of unemployment benefits. - the Mutuas Colaboradoras con la Seguridad Social.
These are non-profit associations, authorised by the Ministry of Inclusion, Social Security and Migration (Ministerio de inclusión, seguridad social y migraciones) composed of employers. They play an important role in the prevention of wokrplace accidents and occupational diseases. - the Instituto de Mayores y Servicios Sociales (IMSERSO) which is in charge of managing the complementary services of the social secutiry system, assistance benefits and non-contributory pensions. To date, the Institute has transferred its competences to all the Autonomous Communities (Comunidades Autónomas), with the exception of Ceuta and Melilla.
- the Instituto Nacional de Gestión Sanitaria (INGESA)
is the management body for health services for the cities of Ceuta and Melilla. In the other regions, the competences for health services, previously attributed to the Instituto Nacional de la Salud, are now exercised by the autonomous communities.
Spanish Income Tax
The Spanish Income Tax or IRPF (Impuesto Sobre la Renta de las Personas Físicas) is deducted at source by the employer. The rate is progressive according to income. Each Spanish autonomous community has its own tax system. Spaniards and foreign residents for more than 6 months must file an annual tax return with the Spanish tax authority “Agencia Estatal de Administración Tributaria” (AEAT) or with a partner bank. This declaration regulates the income tax paid at source. Employees either receive a refund in their favour or have to pay a surcharge. Taxpayers with a salary of less than €22,000 gross/year are not required to make this declaration.
Income tax rate (2023) | |
| 0€ to 12 450€ | 19% |
| 12,450 to 20,199€ | 24% |
| 20,200 to 35,199€ | 30% |
| 35,200 to 59,999€ | 37% |
| 60,000 to 299,999€ | 45% |
| Over 300 000€ | 47% |
Source: lamoncloa.gob
Social Contributions in Spain
General Regime: compulsory social charges (1) | ||||
| Employer | Employee | Total | ||
| General Contribution (2) | 23.60% | 4.70% | 28.30% | |
Unemployment: Permanent Contract Fixed-term Contract | 5.50% 6.70% | 1.55% 1.60% | 7.05% 8.30% | |
| Workplace accidents and occupational diseases | (3) | – | (3) | |
| Salary Guarantee Fund (FOGASA) | 0.20% | – | 0.20% | |
| Professional Training | 0.60% | 0.10% | 0.70% | |
(1) In the event of continuing working beyond the legal retirement age (65 or 66 years and 2 months, depending on the number of years of contributions), the contributions in the table above are no longer applied. Only a contribution to finance benefits for temporary disability is levied, i.e. 1.30% payable by the company and 0.25% payable by the worker.
(2) The general contribution finances old age, disability and survivors’ insurance as well as cash sickness and maternity benefits. Health care and family benefits are financed by taxes.
(3) Contributions for workplace accidents and occupational diseases are payable exclusively by the employer. They are determined according to a scale set by the government taking into account the potential risk specific to each activity. The scale can be consulted on the Spanish Social Security website.
Source : seg-social.es
Collection
Every month, the employer pays the contributions (employee + employer) for the previous month’s pay. Collection is the responsibility of the General Treasury of the Social Security (TGSS).
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Spain.
Our Payroll and HR services in Spain
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Spain
HR & Payroll in Spain
Good to know
Local Currency: Euro (EUR)
Minimum Salary: 1 000€ gross/month (2022) over 14 months.
In Spain, the salary is usually calculated over 14 months because the laws states that an employee must receive two annual bonuses.
Salary Payment: monthly
Salary Calculation: gross – social deductions.
Legal Working Hours: 40 hours/week
Ready to Benefit from Spanish HR & Payroll Experts?
About Spain
The social security system in Spain protects workers in case of illness, accident, disability, old age, death, unemployment and family responsibilities.
There are two types of system:
- Protection for employees
- Protection for non-employees
Except for family benefits, the cash benefits of the social security system in Spain are mainly financed by social contributions. The state also contributes to the financing of contributory pensions and unemployment benefits.
For people who have not contributed enough to receive contributory social benefits, the non-contributory system provides a minimum coverage under means testing (unemployment benefits, old age and disability pensions, minimum subsistence income).
Organisation
Social benefits for employees are administered by :
- the Instituto Nacional de la Seguridad Social (INSS)
which is in charge for the administration of social insurance and cash benefits, old age and disability pensions, survivors’ pensions, sickness and maternity benefits, family benefits and for assessing entitlement to health insurance. - the Tesorería General de la Seguridad Social (TGSS)
which is responsible for the registration of companies, affiliation and de-registration of workers. It ensures the financial administration of the system and manages the collection of contributions. - the Servicio Público de Empleo Estatal (SEPE)
which is responsible for employment, training, retraining and the payment of unemployment benefits. - the Mutuas Colaboradoras con la Seguridad Social.
These are non-profit associations, authorised by the Ministry of Inclusion, Social Security and Migration (Ministerio de inclusión, seguridad social y migraciones) composed of employers. They play an important role in the prevention of wokrplace accidents and occupational diseases. - the Instituto de Mayores y Servicios Sociales (IMSERSO) which is in charge of managing the complementary services of the social secutiry system, assistance benefits and non-contributory pensions. To date, the Institute has transferred its competences to all the Autonomous Communities (Comunidades Autónomas), with the exception of Ceuta and Melilla.
- the Instituto Nacional de Gestión Sanitaria (INGESA)
is the management body for health services for the cities of Ceuta and Melilla. In the other regions, the competences for health services, previously attributed to the Instituto Nacional de la Salud, are now exercised by the autonomous communities.
Spanish Income Tax
The Spanish Income Tax or IRPF (Impuesto Sobre la Renta de las Personas Físicas) is deducted at source by the employer. The rate is progressive according to income.
Each Spanish autonomous community has its own tax system.
Spaniards and foreign residents for more than 6 months must file an annual tax return with the Spanish tax authority “Agencia Estatal de Administración Tributaria” (AEAT) or with a partner bank. This declaration regulates the income tax paid at source. Employees either receive a refund in their favour or have to pay a surcharge.
Taxpayers with a salary of less than €22,000 gross/year are not required to make this declaration.
Income tax rate (July 2021) |
|
| 0€ to 12 450€ | 19% |
| 12 451€ to 20 200€ | 24% |
| 20 201€ to 35 200€ | 30% |
| 35 201€ to 60 000€ | 37% |
| 60 001€ to 130 000€ | 45% |
| 130 001€ to 300 000€ | 47% |
| Over 300 000€ | 49% |
Social Contributions in Spain
General Regime: compulsory social charges as of 1 January 2022 (1) | ||||
| Employer | Employee | Total | ||
| General Contribution (2) | 23.60% | 4.70% | 28.30% | |
Unemployment: Permanent Contract Fixed-term Contract |
5.50% 6.70% |
1.55% 1.60% |
7.05% 8.30% | |
| Workplace accidents and occupational diseases | (3) | – | (3) | |
| Salary Guarantee Fund (FOGASA) | 0.20% | – | 0.20% | |
| Professional Training | 0.60% | 0.10% | 0.70% | |
(1) In the event of continuing working beyond the legal retirement age (65 or 66 years and 2 months, depending on the number of years of contributions), the contributions in the table above are no longer applied. Only a contribution to finance benefits for temporary disability is levied, i.e. 1.30% payable by the company and 0.25% payable by the worker.
(2) The general contribution finances old age, disability and survivors’ insurance as well as cash sickness and maternity benefits. Health care and family benefits are financed by taxes.
(3) Contributions for workplace accidents and occupational diseases are payable exclusively by the employer. They are determined according to a scale set by the government taking into account the potential risk specific to each activity. The scale can be consulted on the Spanish Social Security website.
Collection
Every month, the employer pays the contributions (employee + employer) for the previous month’s pay. Collection is the responsibility of the General Treasury of the Social Security (TGSS).
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Spain.
Our Payroll and HR services in Spain
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Euro (EUR)
Minimum Salary: 1 000€ gross/month (2022) over 14 months.
In Spain, the salary is usually calculated over 14 months because the laws states that an employee must receive two annual bonuses.
Salary Payment: monthly
Salary Calculation: gross – social deductions.
Legal Working Hours: 40 hours/week
Ready to Benefit from Spanish HR & Payroll Experts?
About Spain
The social security system in Spain protects workers in case of illness, accident, disability, old age, death, unemployment and family responsibilities.
There are two types of system:
- Protection for employees
- Protection for non-employees
Except for family benefits, the cash benefits of the social security system in Spain are mainly financed by social contributions. The state also contributes to the financing of contributory pensions and unemployment benefits.
For people who have not contributed enough to receive contributory social benefits, the non-contributory system provides a minimum coverage under means testing (unemployment benefits, old age and disability pensions, minimum subsistence income).
Organisation
Social benefits for employees are administered by :
- the Instituto Nacional de la Seguridad Social (INSS)
which is in charge for the administration of social insurance and cash benefits, old age and disability pensions, survivors’ pensions, sickness and maternity benefits, family benefits and for assessing entitlement to health insurance. - the Tesorería General de la Seguridad Social (TGSS)
which is responsible for the registration of companies, affiliation and de-registration of workers. It ensures the financial administration of the system and manages the collection of contributions. - the Servicio Público de Empleo Estatal (SEPE)
which is responsible for employment, training, retraining and the payment of unemployment benefits. - the Mutuas Colaboradoras con la Seguridad Social.
These are non-profit associations, authorised by the Ministry of Inclusion, Social Security and Migration (Ministerio de inclusión, seguridad social y migraciones) composed of employers. They play an important role in the prevention of wokrplace accidents and occupational diseases. - the Instituto de Mayores y Servicios Sociales (IMSERSO) which is in charge of managing the complementary services of the social secutiry system, assistance benefits and non-contributory pensions. To date, the Institute has transferred its competences to all the Autonomous Communities (Comunidades Autónomas), with the exception of Ceuta and Melilla.
- the Instituto Nacional de Gestión Sanitaria (INGESA)
is the management body for health services for the cities of Ceuta and Melilla. In the other regions, the competences for health services, previously attributed to the Instituto Nacional de la Salud, are now exercised by the autonomous communities.
Spanish Income Tax
The Spanish Income Tax or IRPF (Impuesto Sobre la Renta de las Personas Físicas) is deducted at source by the employer. The rate is progressive according to income.
Each Spanish autonomous community has its own tax system.
Spaniards and foreign residents for more than 6 months must file an annual tax return with the Spanish tax authority “Agencia Estatal de Administración Tributaria” (AEAT) or with a partner bank. This declaration regulates the income tax paid at source. Employees either receive a refund in their favour or have to pay a surcharge.
Taxpayers with a salary of less than €22,000 gross/year are not required to make this declaration.
Income tax rate (July 2021) |
|
| 0€ to 12 450€ | 19% |
| 12 451€ to 20 200€ | 24% |
| 20 201€ to 35 200€ | 30% |
| 35 201€ to 60 000€ | 37% |
| 60 001€ to 130 000€ | 45% |
| 130 001€ to 300 000€ | 47% |
| Over 300 000€ | 49% |
Social Contributions in Spain
General Regime: compulsory social charges as of 1 January 2022 (1) | ||
| Employer | Employee | |
| General Contribution (2) | 23.60% | 4.70% |
Unemployment: Permanent Contract Fixed-term Contract |
5.50%
6.70% |
1.55%
1.60% |
| Workplace accidents and occupational diseases | (3) | – |
| Salary Guarantee Fund (FOGASA) | 0.20% | – |
| Professional Training | 0.60% | 0.10% |
(1) In the event of continuing working beyond the legal retirement age (65 or 66 years and 2 months, depending on the number of years of contributions), the contributions in the table above are no longer applied. Only a contribution to finance benefits for temporary disability is levied, i.e. 1.30% payable by the company and 0.25% payable by the worker.
(2) The general contribution finances old age, disability and survivors’ insurance as well as cash sickness and maternity benefits. Health care and family benefits are financed by taxes.
(3) Contributions for workplace accidents and occupational diseases are payable exclusively by the employer. They are determined according to a scale set by the government taking into account the potential risk specific to each activity. The scale can be consulted on the Spanish Social Security website.
Collection
Every month, the employer pays the contributions (employee + employer) for the previous month’s pay. Collection is the responsibility of the General Treasury of the Social Security (TGSS).
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Spain.
Our Payroll and HR services in Spain
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure