Employment Cost Calculator for Spain

Thinking of employing someone in Spain? As in every other country, hiring comes with additional statutory costs beyond the gross salary you offer. Employers in Spain contribute an average of around 32.5% of the employee’s gross salary to social security, which covers pension, healthcare, unemployment, and training. Employees also contribute between 6.5% and 7.6%, deducted directly from their gross salary.

Use our interactive employment cost calculator to estimate the total cost of employment in Spain, and get a detailed employee cost breakdown in PDF (like this one, but with actual data). It combines gross salary with employer contributions, helping you understand what you’ll pay overall and what your employee will take home.

In Spain, an employee’s net pay is calculated after statutory deductions, including income tax (IRPF) and social security contributions. The amount of IRPF withheld depends on income level, region, and personal circumstances, as Spain applies a progressive tax system with combined state and regional rates typically ranging from 19% to 47%.

Mandatory social security deductions total around 6.5% of gross salary, covering common contingencies, unemployment insurance, training, and pensions. Employers must also issue payslips that clearly outline gross salary, deductions, and the resulting take-home pay.

These deductions ensure that employees receive full access to Spain’s comprehensive social security system, including healthcare, unemployment benefits, and retirement coverage.