Easily manage employment in Spain

Payroll services in Spain

Spain has a strong economy with key industries in tourism, manufacturing, and finance. With specific labor laws and tax regulations, employers in Spain must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Spain

Employers in Spain must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Spain’s minimum wage is EUR 1,134 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Spain is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 125% of the regular wage for extra hours and 150% for work on public holidays.

Taxation and social security contributions

• Personal income tax: Spain has a progressive income tax system with rates ranging from 19% to 47% depending on income levels.
• Employer contributions:
• Social security: 29.9% of the gross salary.
• Employee contributions:
• Social security: 6.45% of the gross salary.
• Corporate tax: The corporate income tax rate in Spain is 25%.
• Tax reporting: Employers must file payroll taxes and contributions with the Spanish Tax Agency (Agencia Tributaria) and Social Security Office regularly.

Payroll compliance in Spain

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security, health insurance, and income tax.
• Employers must stay updated on changes to Spain’s labor laws and tax regulations to avoid penalties.

Run payroll in Spain with Remote

Managing payroll in Spain requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.