Table of Contents
Introduction
Key Considerations for Employing in Spain
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in Spain requires compliance with strict labor laws and employer obligations. Omnipresent’s Employer of Record (EOR) service ensures that businesses meet all employment, payroll, and benefits obligations in Spain.
2. Key Considerations for Employing in Spain
Currency: Euro (€)
Language: Spanish
Employer Costs: Average (~31% of salary)
Termination Complexity: Very Hard
Onboarding Timeline: Approximately 16 calendar days
Payroll Frequency: Monthly
3. Benefits
Types of Benefits Offered
Mandatory Benefits: Public healthcare (SNS), retirement & pension, workers’ compensation.
Supplementary Benefits: Private healthcare, dental insurance, travel insurance.
Healthcare
Public healthcare (SNS) is funded through general taxation (no direct employer/employee contributions).
Private health and dental insurance is highly sought after and commonly offered.
Retirement
State Pension: Contributions are part of the General Social Security Regime.
Supplementary pension plans are optional.
4. Employment Contracts
Contract Types
Indefinite-term contracts
Part-time contracts
Fixed-term contracts are not offered due to legal complexity.
Requirements
Written employment contracts are required.
Language: Bilingual (Spanish & English, with the Spanish version prevailing).
Signature Requirements: Simple electronic signature.
Backdating: Not permitted under Omnipresent’s policy.
Probation Period
Statutory maximum: 2 to 6 months (varies by contract and collective bargaining agreement (CBA)).
Probationary periods pass automatically (no review required).
Employment can be terminated without notice or financial compensation during probation.
Contract Customisation
Optional clauses for customization, such as extra-legal sick days or unlimited time off.
Certain elements cannot be customized (e.g., restrictive covenants, overtime policies).
5. Onboarding
Timeline
The onboarding process in Spain typically takes 16 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Registration & Approvals
Employees must provide:
Número de Seguridad Social (SSN)
Documento Nacional de Identidad (DNI/NIE)
Bank Account Details
Immigration & Visas
Omnipresent can sponsor visas for highly qualified professionals.
Fast-track procedure (PAC Visa) available for skilled workers (subject to eligibility criteria).
Right-to-Work Verification
Employers must conduct right-to-work (RTW) checks.
Health & Safety Training
Mandatory 2-hour Health & Safety Training for all employees.
Employees must complete training within 15 days of employment.
Annual medical examinations are legally required but voluntary for employees.
Employee Transfers from Another EOR
Previous service can be recognized in the new contract.
6. Leaves
Leave Entitlements
Annual Leave: Minimum 30 calendar days (~23 working days).
No annual leave carryover (must be used within the same year).
Maternity & Paternity Leave
Maternity Leave: 16 weeks (paid by Social Security).
Paternity Leave: 16 weeks (paid by Social Security).
Sick Leave
Paid sick leave for up to 1 year (potentially extendable to 18 months).
Employers pre-fund sick pay, but costs are reimbursed by Social Security.
For common illness:
Days 1-3: Unpaid (unless employer opts to pay).
Days 4-20: 60% of regulatory base (employer-funded).
Day 21+: 75% of regulatory base (funded by Social Security).
For work-related illness or accidents:
Employer pays 75% of salary during sick leave.
Public Holidays
Spain has 14 mandatory public holidays, but regional holidays may apply.
Some key holidays include:
New Year’s Day, Epiphany, Good Friday, Labor Day, Assumption, National Day, All Saints’ Day, Constitution Day, Christmas.
7. Payroll & Taxes
Payroll Cycle
Frequency: Monthly
Cut-off Date: 6th of each month.
Payment Date: Last working day of the month.
Employee onboarding must be finalized by the 18th to be included in payroll.
Compensation
Mandatory 14-month salary structure:
Employees receive two additional payments (July & December) unless prorated across 12 months.
Minimum wage (2024): €1,134 per month.
Remote Work Allowance: Minimum €50 per month for work-from-home employees.
Standard Work Schedule
40 hours per week, Monday-Friday.
Intensive August schedule: 36-hour workweek.
Time tracking is mandatory (records must be kept for 4 years).
Employer Costs
Estimated 31% of salary. Use the OmniCalculator for a detailed breakdown.
8. Termination Process
Notice Period
15 working days for both employer and employee.
No notice required for disciplinary dismissal or probationary terminations.
Termination Grounds
Difficult to legally terminate employees outside of gross misconduct.
Objective Dismissal: 20 days' salary per year of service.
Unfair Dismissal: 33 days' salary per year of service.
Disciplinary Dismissal: No severance required.
Beckham Tax Law
Special tax regime for foreign workers relocating to Spain.
Allows tax residency but taxed as a non-resident (lower tax rates).
9. Invoice Schedule
Initial Fees
Setup Fees: Due upon signing Terms.
Deposit: Payable when the local employment contract is ready for signature.
First Salary Prepayment: Invoiced on the first day of employment.
Ongoing Monthly Payments
Labour costs invoiced monthly in arrears after payroll calculations.
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.