Spain Payroll Knowledge

This article explains how payroll works for employees engaged in Spain through RemoFirst, covering pay schedules, deductions, additional payments, leave, working time and end-of-employment entitlements. Spain has strong statutory employee protections, including mandatory extra salary payments (the 13th and 14th payments), strict working-time rules, and detailed rules on leave and termination. 

If you have a question that is not answered below, contact RemoFirst support, and the team will be happy to help.

Payroll Schedule in Spain

How often are employees paid in Spain?

Employees in Spain are paid monthly.

When are employees paid in Spain?

Employees in Spain are paid on the 28th of each month.

What is the payroll cut-off date in Spain?

For Spain there are two cut-offs each month:

• Payroll cut-off: the 10th of the month
• Salary modification cut-off: the 15th of the month

Changes received after these dates are usually processed in the following cycle.

What currency are employees paid in Spain?

Employees in Spain are paid in Euros (EUR, €).

Payslips in Spain

When are Spanish payslips issued?

Payslips in Spain are generally provided within 1 to 2 days after payroll is processed and are uploaded to the platform.

What deductions appear on a Spanish payslip?

Common deductions on a Spanish payslip include:

• Income Tax (IRPF)
• Social Security contributions
• Other statutory deductions where applicable

The employer is responsible for withholding and remitting taxes and social contributions in Spain.

Salary Structure in Spain

Does Spain have a 13th-month salary?

Yes. Spain has both a 13th and a 14th salary payment, known as the "Pagas Extraordinarias".

How do the extra salary payments work in Spain?

In Spain, the annual salary is generally divided into 14 equal parts:

• 12 regular monthly payments
• A summer payment, typically in July
• A Christmas payment, typically in December

These payments are already included in the annual gross salary stated in the employment contract, so they are not additional to it.

Are the extra salary payments prorated in Spain?

Yes. Employees who join during the year in Spain receive a prorated amount of the extra payments based on time worked.

Salary Proration in Spain

Why was my first salary in Spain lower than expected?

Employees who join part way through a month in Spain receive a prorated salary for that first period.

How is proration calculated in Spain?

Proration in Spain is calculated as:

(Monthly Gross Salary ÷ 30) × Days Worked

Weekends and non-working days are included within this calculation methodology.

Tax and Social Security in Spain

What social security contributions apply to employees in Spain?

For 2026, the employee share of Spanish social security is approximately 6.50% of the contribution base. This is made up of common contingencies (4.70%), unemployment (1.55% for a standard indefinite contract), vocational training (0.10%) and the Intergenerational Equity Mechanism, or MEI (0.15%). The exact figure can vary slightly depending on the contract type.

The MEI increased to a combined 0.90% in 2026, of which the employer pays 0.75% and the employee pays 0.15%. The employer pays a separate, much larger share of total social security on top of the employee contribution.

What is the solidarity contribution in Spain?

The solidarity contribution applies only to employees in Spain whose salary exceeds the maximum monthly contribution base, which is €5,101.20 per month (€61,214.40 per year) in 2026. It is charged only on the portion of salary above that ceiling, using progressive rates of roughly 1.15% to 1.46% depending on how far earnings exceed the base. Employees earning below the maximum base are not affected.

How is income tax (IRPF) calculated in Spain?

Income tax in Spain depends on:

• Salary level
• Personal circumstances
• Tax declarations submitted by the employee

IRPF is progressive and is withheld monthly through payroll. The exact rates combine a national component and a regional component, so they can vary slightly between autonomous communities.

Remote Work Allowance in Spain

Is a remote work allowance provided in Spain?

Yes. The standard work-from-home allowance in Spain is €18.21 per month. Clients may choose to provide a higher amount.

Is the Spanish remote work allowance taxable?

Yes. The remote work allowance in Spain is taxable, and employer contributions apply to this payment.

Public Holidays in Spain

How many public holidays are there in Spain?

Spain generally observes up to 14 public holidays per year, made up of roughly:

• 8 national holidays
• 4 regional holidays
• 2 local holidays

The exact mix of national, regional and local holidays varies by autonomous community and municipality.

What happens if an employee works on a public holiday in Spain?

The preferred approach in Spain is to provide a day off in lieu, typically within a few weeks of the worked holiday.

Annual Leave in Spain

What annual leave entitlement applies in Spain?

The statutory minimum annual leave in Spain is 30 calendar days per year, which is roughly 22 working days. The exact entitlement is set by the employment contract and any applicable collective bargaining agreement, which can provide more than the minimum but not less.

Does annual leave accrue in Spain?

Yes. Annual leave accrues in Spain, and unused leave may need to be paid out on termination depending on the employee's balance.

Working Hours in Spain

What are standard working hours in Spain?

Standard working hours in Spain are 40 hours per week, averaged on an annual basis.

What rest periods apply in Spain?

Employees in Spain are entitled to:

• A minimum of 12 hours between workdays
• A minimum 15-minute break after 6 continuous hours worked
• A weekly uninterrupted rest period of approximately 36 hours

How is overtime handled in Spain?

Overtime in Spain should be limited and is preferably compensated through time off rather than additional pay. Paid overtime is generally limited to 80 hours per year, unless it is offset by equivalent time off.

Expenses and Reimbursements in Spain

How are expenses reimbursed in Spain?

Expenses in Spain are paid separately from payroll, generally 2 to 3 days after the salary payment.

What documentation is required for Spanish expense claims?

For an expense claim in Spain, employees must submit:

• An invoice or receipt
• A clear business justification
• Supporting documentation where requested

Why might an expense be rejected in Spain?

An expense in Spain may be rejected if it:

• Cannot be justified as business-related
• Lacks sufficient documentation
• Does not meet tax authority requirements

Rejected expenses may need to be processed as taxable allowances instead.

Probation in Spain

What is the maximum probation period in Spain?

The probation period in Spain is set by the employment contract and any applicable collective bargaining agreement. The legal maximum is commonly up to 6 months for qualified professional roles, and shorter for other roles. The applicable collective agreement takes precedence where it sets a specific period.

What happens when probation ends in Spain?

In Spain, probation ends automatically. No formal confirmation is required unless otherwise agreed.

Employment Changes in Spain

What changes commonly require an addendum in Spain?

Examples of changes in Spain that commonly require a contract addendum include:

• Salary increases
• Working hours changes
• Contractual benefit changes
• Position changes

Are bonuses allowed in Spain?

Yes. Bonuses and variable remuneration are supported in Spain, but they must follow Spanish employment law requirements.

Resignation in Spain

What happens when an employee resigns in Spain?

An employee resigning in Spain must comply with the notice obligations in their contract and applicable collective agreement, which is commonly around 15 days unless the agreement states otherwise. Final pay, known as the "finiquito", may include:

• Outstanding salary
• Accrued leave balance
• Prorated extra salary payments
• Other contractual entitlements

Termination in Spain

Are employees protected from dismissal in Spain?

Yes. Spain has strong employee protections, and dismissals must follow specific legal grounds and procedures.

What payments may apply on termination in Spain?

Depending on the circumstances, termination payments in Spain may include notice pay, severance pay, a PTO payout and other statutory entitlements. 

Does seniority matter in Spain?

Yes. In Spain, prior employment or contractor relationships with the client may create additional severance obligations and must be disclosed during onboarding.

For any payroll question about Spain not answered above, contact RemoFirst support and the team will be glad to help.