Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Spain. Traditional methods of establishing global employment and subsidiaries in Spain typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services are helping hundreds of organisations onboard new employees in Spain in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
The rates are progressive and depend on the employee's salary.
If the employee's gross taxable income is:
Regional tax is applied in a similar way as the state tax. The rates vary, depending on the autonomous region in which the employee works (Spain is divided into 17 autonomous regions).
Social security contributions are paid at various rates, depending on the different contingencies (for example, overtime, unemployment and occupational training) that are covered under the system. For common contingencies, the employer pays 29.9% of the employee's net taxable income and the employee pays 6.35% (this is deducted from the employee's salary). There is a minimum and a maximum contribution for all employees depending on its category within a range from EUR753.00 to EUR3,425.70.
23.60% - Social Security (common contingencies)
5.50% - Unemployment (6.70% for temporary contracts)
0.20% - Salary Guarantee Fund
0.60% - Professional Training
There may be additional percentage for accident insurance, which will depend on the job position and activity.
4.70% - Social Security (common contingencies)
1.55% - Unemployment (1.60% for temporary contracts)
0.10% - Professional Training
Percentages will depend on the salary and are estimates, as there are minimum and maximums for the Social Security contributions.
The typical work week in Spain consists of 40 hours per week.
It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!
Overtime laws in Spain are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.
Spain allows employees a minimum of 30 calendar days (22 working days) of leave. Annual leave is specified in the various collective agreements so it is possible for some employees to have more time off.
Sick leave in Spain includes up to 1 year or up to 18 months (extended sick leave), reimbursed by the Social Security Department. Each employee must have paid 180 days of Social Security contribution within 5 years to qualify for this leave.
Spain has strong maternity leave regulations including 16 weeks all of which are paid.
Paternity leave in Spain allows the father to be entitled to the same leave as the mother.
We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.
Termination in Spain is subject to more difficulties and regulation than other countries. There are a range of reasons that an employer can use to terminate an employee, which depend on the specific circumstances. If you would like to know more specific details, please contact us.
As a general rule, apart from gross misconduct, for every other type of termination there is a minimum severance payable. Please contact our team for details.
If not subject to disciplinary dismissal there is a minimum 15 days for either party. The employer and employee can also agree to the advance notice set out in the applicable collective bargaining agreement.
Laws in Spain protect employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Spain to reach out to us directly with questions.
The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Spain are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
Join thousands of companies who are leading the way and employing remote teams all over the world.
Omnipresent makes it easy to employ, pay and support your international team.
Book a call with us to start building your global team today.
Employ Anywhere. Be Omnipresent.