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Employers in Spain contribute approximately 32.5% of an employee’s gross salary to the Social Security Treasury (Tesorería General de la Seguridad Social – TGSS). These contributions cover healthcare, pensions, unemployment, disability, training, and other protections.
The maximum monthly contribution base in 2025 is €4,909.50.
| Contribution | Contribution amount | Notes |
|---|---|---|
| Common contingencies | 23.60% | Covers sickness, maternity, disability, retirement, death |
| Unemployment (permanent contracts) | 5.50% | Higher for temporary contracts (6.70%) |
| FOGASA (Wage Guarantee Fund) | 0.20% | Protects workers in case of employer insolvency |
| Training | 0.60% | Professional training fund |
| Intergenerational Equity Mechanism (MEI) | 0.67% | Covers sickness, maternity, disability, retirement, and death |
| Occupational accident/illness | 0.90% - 8.50% | Rate depends on sector (CNAE) |
| Solidarity quota (above maximum contribution base) | 0.92% / 1% / 1.17% | Strengthens the pensions system |
Employees contribute 6.48% of gross salary to Social Security contributions made to TGSS, in addition to paying income tax (IRPF). Their contributions are withheld directly from wages and remitted by the employer.
Employment income is subject to Personal Income Tax (IRPF – Impuesto sobre la Renta de las Personas Físicas). This is a progressive system, with both state and regional rates, where the tax rate increases as taxable income rises.
Each autonomous community sets its own regional rates, so the total rate varies by place of residence.
| Gross income | Tax rate |
|---|---|
| €0 - €12,450 | 19% |
| €12,451 - €20,200 | 24% |
| €20,201 - €35,200 | 30% |
| €35,201 - €60,000 | 37% |
| €60,001- €300,000 | 45% |
| Above €300,000 | 47% |
The employer must apply monthly withholdings, calculated according to annual gross salary, contract duration, and the employee’s personal and family situation (marital status, children, dependants, disability, etc). Withholdings are advance payments credited against the annual income tax return.
| Contribution | Contribution Amount | Note |
|---|---|---|
| Common contingencies | 4.70% | Covers sickness, maternity, disability, retirement, and death |
| Unemployment (permanent contracts) | 1.55% | Higher for temporary contracts (1.60%) |
| Training | 0.10% | Professional training fund |
| Intergenerational Equity Mechanism (MEI) | 0.13% | Pension system sustainability |
| Solidarity quota (above maximum contribution base | 0.92% / 1% / 1.17% | Matches employer rate on high salaries |
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