HR Software for Spain

Leave Policy

Maternity Leave

In Spain, maternity and paternity leave are combined under the term Permiso de Nacimiento. Each parent can take up to 16 weeks of maternity/paternity leave. In the first 6 weeks after the birth of the child, both parents are obliged to take vacation.
The INSS (Instituto Nacional de la Seguridad Social) pays for parental leave 100% of the employee’s regular salary, up to a maximum of €4495.50 per month, if the employee has requested this benefit and it has been approved. To be eligible, employees must have made social security contributions for at least 6 months in the last 7 years.

Breastfeeding rules:
Employees who are breastfeeding a child under nine months of age are entitled to one hour of absence from work at a time of their choice, which may be divided into two periods, one at the beginning and one at the end of the working day. This leave can be taken by either the mother or the father if both are working.
The employee may replace this right with a half-hour reduction in her daily working hours for the same purpose or, alternatively, at the employee’s discretion, with a paid leave of 15 calendar days after the maternity leave.

You can use the leave module in IceHrm to manage maternity leave in Spain.

Parental Leave

In Spain, parental leave is not regulated by law. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 365 days if they have contributed 180 days to Social Security in the last 5 years. Employees have the option to extend sick leave for an additional 180 days. If the employee has not contributed to social security for 180 days in the last 5 years, he or she can take sick leave without pay.

The first 3 days are unpaid and are considered a waiting period. Depending on the duration, this vacation is paid at different rates and by different payers:

PeriodPayPayer
0 – 3 days0%N/A
4 – 15 days60% of salaryEmployer
16-20 days60% of salarySocial Security
21 – 30 days75% of salarySocial Security
30- 365 days100% of salary75% Social Security / 25% Employer

Pay & Tax

Minimum Wage Requirements

Minimum wage is EUR 1667

Individual Income Tax

Individual income tax ranges from 19% to 45%. Income tax is calculated according to a progressive rate. Several additional factors can affect overall rates, such as: the household status and the number of children.

Income per year in EURTax Rate (%)
0 to 12,45019%
12,451 to 20,20024%
20,201 to 35,20030%
35,201 to 60,00037%
60,000 and up45%

Payroll Cost

The cost to the employer is generally estimated at 31.98% of the employee’s salary.

Monthly charges

  • General Unforeseen Expenses – 24.18%*
  • Unemployment – 5.50%*
  • Social fund for the salary guarantee – 0.20%*
  • Temporary illness and incapacity, death and survival – 1.50%*
  • Vocational training – 0.60%*
  • WFH office allowance – EUR 50.00
  • Mandatory contribution to the disability fund – 41 EUR
  • 13th Salary – 1/12 of a month’s salary
  • 14th Salary – 1/12 of a month’s salary

*up to a maximum salary for the contribution of EUR 4,720.50

Annual costs

PRL training – EUR 11

Unique

Medical examination – EUR 65.00

These costs are given as estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week (1800 hours per year). The normal working week lasts from Monday to Friday.

Unless an agreement has been made, employees are not allowed to work more than 9 hours per day. Employees can work a maximum of 80 hours of overtime per year.

Pay for overtime is mandatory and can be offset against salary. Hours worked outside of normal working hours are considered overtime. Employees can work a maximum of 80 hours of overtime.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Terminations in Spain can be complex. In Spain, employers cannot terminate at will outside of the probationary period and the termination must be for a valid reason.

Proper terminations include:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    • Probationary period
    • Objective reasons
    • Disciplinary dismissal
    • Performance due to unsuitability for the position
  • When the contract expires

Notice Period

The minimum notice period is 15 days, but may be longer in certain circumstances. There is no notice period during the probationary period or in the event of disciplinary dismissals.

Severance for Employees

Involuntary dismissal by the employer for non-disciplinary reasons: 20 days of salary per year of service. (proportional if less than <1 year)

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 23 days of paid time off per year. PTO is credited monthly at 1.92 days per month. Employees are entitled to annual leave after one month of work.

Employees may, with prior notice and justification, be absent from work for any of the following reasons and for the following period, being entitled to compensation:
a) Fifteen calendar days/natural days in case of marriage.
b) According to Article 37.3.b of the Workers’ Statute: “Two days in the event of the birth of a child and in the event of death, accident or serious illness, hospitalization or non-hospitalization surgical operation requiring home recovery, of relatives up to the second degree of consanguinity or marriage. If the employee has to travel for this reason, the deadline is four days.
c) Four days in the event of the death of the spouse, parents or children, including any moves during this time.
d) One day when changing your habitual residence (moving)

Public Holidays

Public holidays vary depending on the region (municipality) in Spain. Each community is allowed to celebrate 14 public holidays per year. This includes:

  • 8 public holidays designated by the Spanish government
  • 4 regional holidays set by the local government
  • 2 municipal holidays set by the city administration

The national holidays in Spain are:

  • January 1st: New Year celebrations
  • January 6: Epiphany
  • Good Friday
  • August 15th: Assumption Day
  • October 12th: Fiesta de la Hispanidad
  • November 1st: All Saints Day
  • December 6th: Spanish Constitution Day
  • December 8th: Immaculate Conception

Onboarding

Onboarding

Onboarding takes 3 working days.

Additional Info

Employment Contract Details

The contracts must be written in Spanish and can be bilingual. They must be in writing and signed by both parties.

The contracts must contain:

  • First and Last Name
  • Number DNI / NIE
  • Address
  • Professional group
  • Salary
  • Vacation per year
  • Contract start date
  • Type and duration of the contract
  • Contractual working hours
  • The company’s collective agreement

Probation Period

Probationary periods are not mandatory. There is no minimum probation period and the maximum probation period is 180 days.