How do 14 salary payments work in Spain?

Spanish salaries are usually quoted as an annual amount paid in 14 installments: 12 monthly payments plus 2 extra payments, often in July and December. Employers can prorate the extras into 12 payments. The 2026 minimum wage is EUR 1,221 per month in 14 payments.

What does Spanish social security cost in 2026?

Employers pay 30.65% plus an accident rate on contribution bases from EUR 1,424.40 to EUR 5,101.20 per month. Employees pay 6.5%. Since 2025, a solidarity contribution also applies to pay above the maximum base, and the employer covers most of it.

Can Good Balance Global hire in Spain for my company?

Yes. As your Employer of Record (EOR), we become the legal employer under the applicable collective agreement, register the employee with Social Security, and run payroll with IRPF withholding. You manage the work, and we handle mandatory time recording and contracts.

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Payroll and benefits guide

Spain

CapitalMadrid

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyEUR (Euro)

Payroll FrequencyMonthly

Employer Taxes30.65% + accident rate

Employee Costs6.5%

Overview

Languages: Spanish
Income tax: 19% – 47%
VAT: 21%; Reduced rates: 10%, 4%. The Canary Islands use IGIC instead of VAT; Ceuta and Melilla use IPSI

Contributions

Employer

23.60%

Common contingenciesOn a monthly base between EUR 1,424.40 and EUR 5,101.20 (2026)

5.50%

UnemploymentFor permanent contracts; higher for fixed-term contracts

0.60%

Vocational training

0.20%

Wage Guarantee Fund (FOGASA)

0.75%

Intergenerational Equity Mechanism (MEI)2026 employer share

Varies

Occupational accident and diseaseSet by activity; about 1.5% for office work

30.65% + accident rate

Total employer cost

Employee

4.70%

Common contingenciesSame monthly base limits

1.55%

UnemploymentFor permanent contracts

0.10%

Vocational training

0.15%

Intergenerational Equity Mechanism (MEI)

6.5%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Spanish Tax Agency (AEAT)

Paid To

IRPF income tax withheld from wages

Due Date

20th of the month after each quarter (monthly for large companies)

Method

Form 111 filed electronically; annual summary on Form 190

Authority Payment

General Treasury of Social Security (TGSS)

Paid To

Employer and employee social security contributions

Due Date

Last day of the following month

Method

Filed and paid through the RED system

Minimum Wage & Working Hours

Minimum wage: EUR 1,221 / Monthly; Paid in 14 installments (EUR 17,094 a year), retroactive to 1 January 2026 under Royal Decree 126/2026
Standard working hours: 40 hours per week on an annual average; Daily time recording is mandatory
Overtime: Up to 80 hours per year; paid at no less than the regular rate or compensated with time off within 4 months

Leave

Annual leave30 calendar days
Sick leaveBenefit from day 4The employer pays days 4–15 at 60% of the regulatory base; Social Security pays 60% from day 16 and 75% from day 21. Collective agreements often top up pay
Maternity leave19 weeksBirth and childcare leave under Royal Decree-law 9/2025 (32 weeks for single parents). The first 6 weeks after birth are mandatory, 11 weeks can be taken flexibly until the child turns 1, and 2 weeks can be used until the child turns 8. Paid at 100% of the regulatory base by Social Security
Paternity leave19 weeksThe other parent has the same non-transferable 19 weeks on the same terms, including 6 mandatory weeks right after birth. Paid at 100% of the regulatory base by Social Security
Public holidaysUp to 14 daysA mix of national, regional, and local holidays

Leave type	Duration	Notes
Annual leave	30 calendar days
Sick leave	Benefit from day 4	The employer pays days 4–15 at 60% of the regulatory base; Social Security pays 60% from day 16 and 75% from day 21. Collective agreements often top up pay
Maternity leave	19 weeks	Birth and childcare leave under Royal Decree-law 9/2025 (32 weeks for single parents). The first 6 weeks after birth are mandatory, 11 weeks can be taken flexibly until the child turns 1, and 2 weeks can be used until the child turns 8. Paid at 100% of the regulatory base by Social Security
Paternity leave	19 weeks	The other parent has the same non-transferable 19 weeks on the same terms, including 6 mandatory weeks right after birth. Paid at 100% of the regulatory base by Social Security
Public holidays	Up to 14 days	A mix of national, regional, and local holidays

Termination

Probation period: Unless the collective agreement says otherwise: up to 6 months for degree-qualified technicians; up to 2 months for other roles (3 months at companies with fewer than 25 employees); 1 month for temporary contracts of 6 months or less
Notice period: 15 days for dismissal on objective grounds
Severance pay: Objective dismissal: 20 days of pay per year of service, up to 12 months. Unfair dismissal: 33 days per year, up to 24 months (45 days per year for service before 12 February 2012)
13th salary: Mandatory: 2 extra payments a year, usually in summer and December, unless prorated monthly
Notes: Disciplinary dismissal that is upheld carries no severance

Benefits

Extra payments (pagas extraordinarias)Mandatory
Two additional monthly payments each year
Private health insuranceCommon
Tax-advantaged up to set limits
Meal cardCommon
Tax-exempt daily amount within legal limits

Visas & Work Permits

Highly qualified professional residence permit
Requirements
Job offer for a qualified role; processed by the Large Companies and Strategic Groups Unit (UGE)
EU Blue Card
Requirements
Higher education or relevant experience and a qualifying salary
Residence and work permit for employment
Requirements
Job offer; the role usually needs a labor-market check unless it appears on the shortage list

FAQ

Sources

Last updated: November 1, 2026

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