Hiring Employees in Spain
Payroll Services Spain
Choose PeoplePay Global to handle your Payroll Services in Spain, for a compliant, reliable and accurate solution to managing employee salaries, tax withholdings and social security contributions.
Our experts are kept up-to-date with any changing Spanish Payroll Regulations and labour law requirements to ensure payment processing is completed in a timely and efficient manner. Outsourcing your Payroll is the simple way to reduce administrative stress and ensure that your business has the necessary time to focus on company growth and productivity.
Spanish Payroll Services
Transform your business by choosing Outsourced Payroll in Spain through PeoplePay Global – the simple solution to managing employee salaries in a timely and accurate manner.
Our team of experts will provide in-depth knowledge of Spanish Payroll Regulations, including tax withholdings, social security contributions and labour law requirements, ensuring each payroll cycle is completed on time. We will handle every aspect of the payroll process, from salary calculations, statutory deductions and monthly reporting, handling the process with precision and ease.
By outsourcing your Spanish Payroll, you can be assured of reducing administrative stress by minimising the risk of costly errors, whilst being assured you are staying compliant with frequently changing legislation. Whether you are a local business or a multinational organisation operating in Spain, we will be able to tailor your payroll solutions to your business’s needs.
Partner with us today to improve the efficiency of your business and have the peace of mind that your Spanish Payroll is being handled professionally and with care.
In Spain, the monthly minimum wage is €1,184 with two additional payments of this amount being made in July and December each year. This equates to a minimum hourly rate of €9.26.
The Spanish income tax rates since March 2025 are as follows:
- For income up to €12,450 – 19% tax rate
- For income ranging from €12,451 to €20,200 – 24% tax rate
- For income ranging from €20,201 to €35,200 – 30% tax rate
- For income ranging from €35,201 to €60,000 – 37% tax rate
- For income ranging from €60,000 to €300,000 – 45% tax rate
- For income over €300,000 – 47% tax rate
In Spain, the total amount contributed towards the state pension system is 28.3% of an employee’s salary, with the majority of this being paid by the employer (23.8%), and the remaining 4.7% being paid by the employee.
The standard working hours in Spain are 8 hours per day and 40 hours per week (the statutory maximum), usually from Monday to Friday.
Employee’s leave consists of several types:
- Statutory time off or annual leave, which is a minimum of 30 calendar days (or 22 working days) per year for full-time employees
- Public holidays (14 per year in Spain)
- Maternity, Paternity and Parental leave
- Sick leave
Termination of an employment contract in Spain is complex and is covered by several laws and any contractual obligations made at the time employment commenced.
Legally compliant dismissals come under Articles 49 to 56 of the Workers’ Statute and can include:
- Mutual agreement between the parties
- Employee resignation
- Disciplinary, objective or collective dismissal
- Expiration of temporary contract
All dismissals must follow specific procedures to ensure compliance with labour laws which include, but are not limited to, a minimum notice period, written notification, severance pay and a settlement agreement.
