Partner with Lerio to keep employment in Spain legally sound — contracts, payroll and statutory benefits handled against the live rule set.
Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.
Employee taxes
withheld from grossEmployee Taxes
withheld from grossEmployer taxes
on top of grossEmployer Tax
on top of grossYou can hire in Spain through Lerio’s Employer of Record — no local entity required.
Spain is one of Europe’s largest economies and a strategic hub for businesses expanding into Southern Europe and Latin America. With its growing technology sector, strong service industries, and competitive workforce, Spain offers attractive opportunities for international employers. However, employment in Spain is highly regulated, with strict labor laws, social security requirements, and collective bargaining agreements.
An Employer of Record (EOR) in Spain allows companies to hire employees legally without establishing a local entity. The EOR acts as the legal employer, managing contracts, payroll, taxes, benefits, and compliance, while the client company directs the employee’s daily work and business activities.
Key Benefits of Using an EOR in Spain
Faster Hiring – Onboard employees in weeks without going through lengthy entity registration.
Compliance with Spanish Labor Law – Ensure contracts, payroll, and benefits follow national legislation and collective agreements.
Cost & Risk Reduction – Avoid administrative complexity, legal risks, and costs of entity setup.
Access to Skilled Talent – Tap into Spain’s diverse talent pool, particularly in IT, engineering, finance, and customer service.
Flexibility – Scale operations up or down based on business needs.
Employment in Spain Through EOR
By working with an Employer of Record in Spain, companies gain support with:
Employment contracts drafted in compliance with Spanish law and applicable collective bargaining agreements.
Payroll management, including withholding of income tax (IRPF) and social security contributions.
Employee registration with Spain’s social security system.
Administration of mandatory benefits, including paid leave, sick leave, maternity/paternity leave, and severance obligations.
Adherence to termination procedures, which are highly regulated and require proper justification and compensation.
HR and employee support to ensure smooth operations.
Compliance and Labor Laws in Spain
Working Hours: Maximum of 40 hours per week, with restrictions on overtime.
Paid Leave: At least 30 calendar days (22 working days) of paid annual leave, plus public holidays.
Probation Period: Generally up to 6 months for qualified technicians and 2 months for other workers.
Termination Rules: Employees are strongly protected; dismissals require proper cause, notice, and severance pay (20–33 days’ salary per year of service, depending on the type of dismissal).
Social Security: Both employer and employee contribute to pension, healthcare, unemployment, and other benefits. Employer contributions are significant, averaging around 30% of gross salary.
Collective Bargaining Agreements (CBAs): Widely enforced in Spain, regulating pay scales, working hours, and benefits across industries.
Why Choose an EOR in Spain?
Speed to Market – Avoid delays from entity registration.
Legal Compliance – Navigate Spain’s complex labor framework with expert guidance.
Reduced Administrative Burden – Outsource payroll, HR, and compliance.
Cost Efficiency – Minimize upfront and ongoing expansion costs.
Local Expertise – Gain in-country knowledge to manage employee rights and obligations.
What Lerio handles
Typical timeline
via EORStatutory benefits in Spain, plus the supplemental coverage teams usually add.
Mandatory
Commonly added
optionalStatutory / Mandatory Benefits in Spain
Governed by Spanish labor law and Collective Bargaining Agreements (CBAs):
Paid Annual Leave – Minimum 30 calendar days per year (equivalent to about 22 working days).
Public Holidays – 14 per year (10 national, 2 regional, 2 local).
Working Hours & Overtime – Standard 40 hours per week, maximum 9 hours/day. Overtime capped and often compensated with time off or higher pay.
Paid Sick Leave –
First 3 days: usually unpaid (unless CBAs improve it).
Days 4–15: employer pays 60% of salary.
Days 16–20: social security pays 60%.
From day 21 onward: 75% covered by social security.
Maternity Leave – 16 weeks paid at 100% of salary (6 weeks compulsory after birth).
Paternity Leave – 16 weeks paid, fully equal to maternity leave since 2021.
Parental Rights – Right to request reduced working hours or unpaid leave for childcare.
Severance Pay – Varies by contract type and reason for termination (e.g., 20 days per year of service for economic dismissals, 33 days per year for unfair dismissals).
Social Security Contributions – Employers contribute around 30% of gross salary (covering pensions, unemployment, sickness, maternity/paternity, and work injury).
Unemployment Benefits – Eligible employees receive benefits through the public system.
Occupational Health & Safety – Employers must provide a safe workplace under Spanish law.
Common Employer-Provided Benefits in Spain
Employers, especially larger firms and multinationals, typically offer extra perks:
Supplementary Health Insurance – Private medical coverage (highly valued despite universal public healthcare).
Meal Vouchers (Cheques Restaurante) – Popular benefit, usually €9–11 per working day.
Transport Allowances – Commuting subsidies, fuel cards, or company transport.
Supplementary Pension Plans – Employer contributions to private retirement savings.
Life & Disability Insurance – Often included in executive and senior employee packages.
Performance Bonuses – Annual, productivity, or profit-sharing bonuses.
Flexible / Remote Work Options – Hybrid models are increasingly standard post-COVID.
Professional Development – Training programs, certifications, education support.
Wellness Programs – Gym memberships, mental health support, wellness stipends.
Extra Paid Leave – Beyond statutory minimum, e.g., for birthdays, volunteering, or long service.
Stock Options / Equity Plans – Common in tech, startups, and international companies.
Employee Discounts – Corporate discounts on consumer goods, travel, and services.