Payment in Spain

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General Employee Pay Regulations in Spain

Employee pay in Spain is regulated by national labour law and collective bargaining agreements to ensure employees receive fair and transparent wages. Employers must issue payslips showing gross salary, statutory deductions, and net pay, and they are required to comply with minimum wage rules, annual leave entitlements, and overtime laws. Non-compliance can result in fines, back pay, and employee claims.

The following are key aspects of how employee pay is managed and regulated in Spain:

Minimum wage

The national minimum wage in 2025 is €1,184 per month (14 payments) or €1,381 per month (12 payments), equal to an annual minimum of €16,576.

Frequency

Employees in Spain must be paid at least once a month. Salaries are typically paid on the last working day of the month. By law, workers are entitled to 14 payments per year (12 monthly salaries plus two additional bonuses, often in July and December).

Employers must also issue detailed payslips for every payment.

Deductions and contributions

Employers are responsible for withholding and remitting mandatory deductions on behalf of employees, including:

  • Social security contributions: approx. 6.48% of gross salary, covering healthcare, pensions, unemployment and training
  • Income tax (IRPF): progressive withholding ranging from 19% to 47%, depending on salary, region, and personal/family situation

Employers must also contribute their own share of social security costs (approximately 32.5%).

Payday

Wages are usually paid on the last working day of the month, although CBAs or company agreements may set different arrangements. Payslips must clearly show all earnings and deductions.

Penalties for non-compliance

Failure to comply with wage payment obligations, such as delayed wages, unauthorised deductions, or incorrect contributions, can expose employers to fines, back payments, and employee claims. Misclassification of employees as contractors can also lead to penalties, retroactive social security contributions, and compensation claims.

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