General Overview

Spain, located in southwestern Europe, boasts a diversified economy heavily reliant on tourism, agriculture, and industrial sectors. As a member of the European Union, Spain offers an advanced labor framework ensuring employee rights and benefits.

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Employment Contracts

Employment contracts in Spain can be indefinite or temporary, with the latter requiring a clear duration. Contracts must comply with the terms outlined in collective bargaining agreements.

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Probation Period

Indefinite Contracts:

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• Up to 6 months for roles requiring technical skills or qualifications.
• 2 months for most other roles.

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Temporary Contracts:

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• 1 month for contracts under six months.
• Specific trial periods apply to training and specialized contracts.

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Working Hours

The standard workweek is 40 hours, with daily working hours capped at 9 hours. Employees are entitled to a minimum rest period of 12 hours between shifts and a weekly uninterrupted rest period of 1.5 days (2 days for minors).

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Vacation Days

Employees are entitled to 22 working days (30 calendar days) of paid leave annually. At least two weeks must be taken consecutively.

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Sick Leave

Employees receive at least 60% of their salary during sick leave, with payments initially made by the employer and reimbursed by Social Security. Sick leave can last up to 18 months, after which eligibility is reviewed.

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Wages and Salary Payment

Spain's minimum wage for 2024 is updated to €1,260 per month (€15,120 annually) across 12 payments. Many collective agreements include 14 payments annually, with extra paychecks in July and December.

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Public Holidays

Spain observes national, regional, and local holidays. Maximum of 14 days per year. Key national holidays include:

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• New Year’s Day (January 1)
• Epiphany (January 6)
• National Day (October 12)
• Christmas Day (December 25)

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Employer Taxes

Employers contribute 29.90% of an employee's salary to Social Security, plus a variable rate for occupational accident insurance. The current maximum monthly Social Security base is €4,495 in 2024.

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Employee Taxes

Employees contribute 6.35% to Social Security. Income tax rates for 2024 vary by region but generally follow:

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• 19% for income up to €12,450.
• 45% for income above €60,000.Regional tax laws may add slight variations to these rates.

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Notice Period

The standard notice period is 15 days unless a longer period is agreed upon in the employment contract or collective agreement. Notice requirements do not apply to interim contracts.

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Termination and Severance Pay

• Fair Dismissal: 20 days’ pay per year of service, capped at 12 months.
• Unfair Dismissal: 33 days’ pay per year of service, capped at 24 months.
• Temporary Contracts: Severance increases by 1 day per year of service, capped at 12 days.