The Minimum Wage stands at EUR 1,166.67 per month. Overtime payment is compulsory and can be included in the regular salary. Overtime refers to hours worked beyond the standard work hours. Employees are allowed to work a maximum of 80 hours of overtime.
Standard working hours consist of 8 hours per day and 40 hours per week, which totals to 1800 hours per year. The standard workweek spans from Monday to Friday. Unless there is an agreement in place, employees are restricted from working more than 9 hours per day. Furthermore, they can only work a maximum of 80 hours of overtime per year.
In Spain, mandatory benefits encompass Social Security, a Work from Home Office allowance, Unemployment insurance, Health insurance, a Pension fund, and a Salary guarantee fund. Private healthcare is offered as an optional benefit that employers may provide to enhance the employee experience.
Employers are obligated to pay two additional salaries per year: the Summer Holiday, equivalent to a 13th-month salary, and the Christmas Allowance, corresponding to a 14th-month salary.
In Spain, employers typically handle payroll on a monthly basis, adhering to a preferred schedule as follows:
Individual income tax in Spain is determined by progressive rates, and several additional factors may influence the overall tax rates, such as household status and the number of children. The income tax rates are as follows:
All contracts must be in Spanish and may also be bilingual. Additionally, they must be in written form and duly signed by both parties. Essential elements that a contract must include are the employee's name, DNI/NIE number, address, job category, salary, number of annual holidays, contract start date, type, and duration of the contract, contract hours, and reference to the company's collective agreement.
Backdating of contracts is strictly prohibited.
The standard probation period in Spain is typically three months. For indefinite-term contracts, which are the most common type of employment contracts, the maximum legal probation period is six months, whereas, for non-qualified workers, the maximum allowed probation period is two months.
During the probation period, any sick leave taken by the employee will pause the probation period until the employee resumes work.
Severance pay in Spain is contingent on the type of dismissal an employee experiences. In cases of non-voluntary dismissal by the employer for non-disciplinary reasons, the severance pay amounts to 20 days of salary per year of service (proportional for employment periods less than one year).
However, if the dismissal is deemed unfair, the employee is entitled to receive 33 days' salary per year worked, with a maximum cap of 24 months' salary.
Regarding notice periods, the minimum required is 15 days, though it could be longer depending on specific circumstances. During the probation period or for disciplinary terminations, no notice period is mandatory.