Employment in Spain is governed by the Workers' Statute (Estatuto de los Trabajadores) and by sector collective agreements, which often improve on the legal minimums. Here is what employers need to know about leave, pay, tax, social security and ending employment.
The Workers' Statute sets the minimum leave for all employees. Collective agreements frequently add more, so always check the agreement that covers each role.
At least 30 calendar days of paid holiday a year (roughly 22 working days). It cannot be replaced by payment except when employment ends.
For each parent (32 weeks for single parents). The first 6 weeks after the birth are compulsory and full-time. Paid by Social Security.
Each parent can take up to 8 weeks until the child turns 8, continuously or in parts.
Statutory temporary incapacity benefit: nothing for days 1–3, 60% from day 4 and 75% from day 21. The employer pays days 4–15.
Spain treats both parents the same. Each has 19 weeks of leave for the birth of a child: 6 compulsory weeks straight after the birth, 11 weeks that can be taken in weekly blocks until the child's first birthday, and 2 weeks that can be used at any time until the child turns 8. The leave is individual and cannot be transferred to the other parent. The birthing mother may start up to 4 weeks before the due date.
Collective agreements often top up sick pay to 100% of salary and add further paid leave.
Set up each Spanish leave type in IceHrm with its own accrual, carry forward and approval rules, from annual leave to birth and childcare leave, with pro-rata entitlements for part-time staff. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The government sets the minimum interprofessional wage (SMI) each year by royal decree. Collective agreements set higher minimums for most jobs.
Paid in 14 instalments (€17,094 a year), or €40.70 a day, for full-time work in 2026 (Royal Decree 126/2026, backdated to 1 January 2026).
Averaged over the year, with no more than 9 ordinary hours a day unless an agreement says otherwise, and at least 12 hours' rest between working days.
Overtime is paid at no less than the ordinary hourly rate or given back as paid time off within 4 months.
Employees are entitled to two extraordinary payments (pagas extraordinarias) a year, one at Christmas and one at a time set by the collective agreement, usually summer. This is why salaries are often quoted in 14 payments. Collective agreements can allow the extra payments to be spread across the 12 monthly salaries.
Capture attendance and overtime in IceHrm, keep the daily time records Spanish law requires, and feed the hours straight into payroll so overtime reflects what was actually worked. Time & attendance →
Residents pay personal income tax (IRPF) on their worldwide income. The rate on general income combines a state scale and a regional scale set by each autonomous community, so the final rate depends on where the employee lives. Employers withhold tax from every payment and file returns with the Tax Agency.
| Taxable income | Rate |
|---|---|
| €0 – €12,450 | 19% |
| €12,450 – €20,200 | 24% |
| €20,200 – €35,200 | 30% |
| €35,200 – €60,000 | 37% |
| €60,000 – €300,000 | 45% |
| Over €300,000 | 47% |
The withholding percentage for each employee depends on their salary, family situation and region, and is recalculated when circumstances change. Employees reconcile the final amount in their annual return.
Social security contributions are calculated on monthly gross pay between a minimum and a maximum contribution base. The employer deducts the employee's share and pays both to the Social Security Treasury.
For permanent contracts under the general regime, including common contingencies (23.60%), unemployment, wage guarantee fund, training and the intergenerational equity mechanism.
Varies by activity; around 1.5% for office work. Paid by the employer only.
Withheld from salary, including 4.70% for common contingencies. Rates can differ by contract type.
Build Spanish pay the way you already structure it, with your own salary components, deductions and formula columns, such as the two extra payments or a social security contribution column. Want to know how well IceHrm handles payroll calculations for Spain? Contact us or see Payroll →
Employment in Spain is not "at will". A dismissal must be based on a disciplinary reason or an objective (economic, technical, organisational or production) reason, be notified in writing, and can be challenged in the labour courts, which may rule it fair, unfair or void.
| Situation | Notice | Severance |
|---|---|---|
| Objective dismissal | 15 days (or pay in lieu) | 20 days' salary per year of service, max 12 months' pay |
| Dismissal ruled unfair | – | 33 days' salary per year of service, max 24 months' pay |
| Fair disciplinary dismissal | None | None |
| End of a fixed-term contract | As agreed | 12 days' salary per year of service (not for replacement or training contracts) |
Final pay includes accrued but untaken holiday and the proportional part of the extra payments. Employees who resign usually give the notice set by their collective agreement.
Spain has up to 14 paid public holidays a year, of which 2 are local. The national calendar is published each year, and the autonomous communities can replace some national days with their own, so the exact list depends on the region and town.
Maundy Thursday and Easter Monday are holidays in many regions, alongside regional days such as Saint Joseph's Day or each community's own national day. Holidays falling on a Sunday may be moved to Monday.
Leave groups give each office its own holiday calendar, so teams in Madrid, Barcelona and Seville each get the right regional and local days off automatically. Holiday calendars →
Employment contracts are presumed to be permanent (indefinido). Since the 2022 labour reform, fixed-term contracts are only allowed for specific, justified reasons, and they must state the reason in writing.
Send contracts for e-signing, store them on the employee's record with the contract type and end date, and track onboarding with task lists so registrations are done before day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Spain, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Spain? Talk to us.
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