Employee Benefits in Spain

Read our comprehensive guide to employee benefits in Spain to ensure your hiring strategies are effective and aligned with local labor laws.

Employees in Spain are known to be versatile, friendly, and well-versed in various industries, especially technology. Why wouldn’t you want to hire workers from there? However, let us tell you first – there’s a lot you need to know before starting the recruiting process.

Though Spain is a welcoming country in general, when it comes to labor, governmental regulations can be stiff. So, if you plan to hire a Spanish worker, you need to be up to date on all pertinent labor laws and regulations and know what workers from this country expect from their bosses.

In this article, we’ll tell you all you need to know about employee benefits in Spain. We’ll focus on the mandatory benefits outlined by Spanish labor law, supplementary benefits to consider, and tips on how to build a good Spanish employee benefits plan.

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Mandatory Laws Concerning Employee Benefits in Spain

Spain has enacted various laws that govern the relationship between employers and Spanish employees. These regulations apply to both domestic and foreign businesses – even those that haven’t yet set up a legal entity in the country.

You can find information about Spanish labor laws at the Ministerio de Trabajo Y Economia Social (MITES), which in English means the “Ministry of Work and Social Economy.” Information on workers’ rights, labor regulations, and employment standards is laid out for you on this site.

The European Commission, the Government Administration of Spain, and EURES (EURopean Employment Services) are also helpful to global employers.

REMOTE PEOPLE NOTE

Some of the resources referenced in this article are in Spanish. To change the language, go to your browser settings and click “translate.” Then, select your preferred language. Translation software like Spanishdict.com or DeepL.com also comes in handy if your browser’s translation functionality isn’t working.

Below, we’ll outline all the mandatory laws you need to follow as an employer hiring Spanish talent:

Working Hour Limits and Overtime

Employers of full-time Spanish employees can only allow 40-hour work weeks. And there must be 12 hours between the end of one shift and the beginning of another. As for overtime, here’s the lawful pay rate – a minimum of 125% of the regular hourly rate for each hour over the standard eight.

Due to this law, employers should be adamant and consistent about time-tracking. No employee can work more than 80 hours of overtime over the course of a year.

Bonuses

According to Article 26.3 of the Workers’ Statute, each employee should be eligible to earn two bonuses per year. The company should be clear about the bonus qualifications workers have to meet. Employees usually get the first bonus halfway through the year and the other at the year’s end.

Paid Leave

Paid leave totals for people working in Spain vary widely; use the table below for more information:

Type of Leave	Leave Term Per Spanish Law
Weekly Rest	1.5 days per week, which may be accumulated over a 14-day period
Public Holidays	14 per year, paid and non-recoverable
Marriage	15 days
Family-Related Absences	2 to 4 days*
Relocation	1 day
Public and Personal Duties	Varies
Parental	16 weeks**
* Longer leave terms are reserved for situations where travel is required. Increases to 18 weeks for twin births and 20 weeks for triplets or more. Both parents are eligible, and at least 6 weeks of the leave must be taken post-birth. Other exceptions apply. Source:** Government Administration of Spain

Social Security Benefits

Spain’s Social Security benefits, provided through the Instituto Nacional de la Seguridad Social (INSS), are extensive, covering everything from healthcare to pregnancy risks to unemployment and more. Here’s a list of all of the benefits:

Healthcare – Through the public health system, Spanish workers gain access to medical care and treatments deemed necessary. So, you don’t have to pay for private health coverage for your Spanish workers, though some employers do for senior-level positions.
Temporary disability – When an employee experiences an injury or illness directly connected to work, they can draw upon the Social Security fund for assistance.
Risk during pregnancy – Employees who are out of work due to pregnancy-related risks are entitled to 100% of the regulating base (RB). Exclusions and special situations apply.
Risk during breastfeeding – if an employee suffers a loss of income after a risk during breastfeeding, they receive a reward of 100% of the regulating base.
Care for children affected by cancer or another serious illness – If an employee has to work reduced hours for less pay to care for a minor dependent who has cancer or another illness, they can receive compensation of 100% of the regulating base.
Permanent disability – If an employee is permanently disabled from an illness or accident, they may receive compensation through social security benefits.
Permanent non-disabling lesions – Employees who become deformed in some way because of a work accident or illness (and it’s not permanently disabling) are entitled to a lump sum allowed by law.
Retirement – When an employee (1) reaches the standard age of 67 or (2) has reached 65 years old AND has paid at least 38.5 years of social security contributions, they are privy to retirement compensation.
Death and survival – There are five different benefits for death and survival, including widowhood pension, orphanhood pension, pension for family members, subsidy for families, and death grant. The stipulations of each of these benefits vary widely – we recommend taking a close look at each of them.
Family benefits – Spain has availed family benefits for four scenarios – a per child allowance, multiple births and adoption, non-economic child care benefits, and benefits for childbirth and adoption.

*This is not a full list of social security benefits. Go to this Social Security page to see the rest and view additional related resources.

Remember that these provisions are only doled out if the employee meets the relative qualifications.

Collective Bargaining

9 out of 10 private wage earners in Spain nail down their working conditions through collective bargaining. Collective bargaining agreements (CBA) – called convenios colectivos in Spain, carry a lot of weight when it comes to Spanish labor law. Though the term may be unfamiliar to some, it simply refers to agreements made between employers and employees about key aspects of the working relationship.

Keep in mind that all work-related agreements have to be based on mandatory Spanish standards.

REMOTE PEOPLE FURTHER READING

If you want to learn more about collective bargaining, you can refer to this article for further reading on the topic.

Supplementary Benefits to Offer Employees from Spain

After you’ve checked off all the mandatory benefits, it’s time to get into some of the supplementary benefits you can offer your employees to reel them in and keep them happy. Here are some of the main optional benefits you can include in your employee benefits plan:

Life insurance plan (this is a very common benefit among Spanish employers).
Private health insurance to bolster your employee’s public healthcare coverage.
Add additional retirement savings plans to your employee benefit plan.
Give your Spanish workers more time off than what the law requires.
Childcare stipend or on-site childcare.
Hybrid work arrangements – can be given across the board or only to high-performing employees.

How To Build a Benefit Plan That Attracts Spanish Workers

Every benefit plan is unique. But it’s critical that the mandatory work-related provisions are all in place. And if it’s feasible, include some add-ons to show your Spanish workers that you really care about their well-being, work-life balance, etc. Finalize the benefits plan, ensuring all t’s are crossed and i’s are dotted. Upon hiring a Spanish employee, you’ll need to work with local and federal Spanish authorities to set up social security contributions, payroll, and taxes. If you come across issues you can’t resolve on your own, feel free to reach out to an expert (we’ll outline your options below).

Resources to Consider When Building a Spanish Employee Benefits Plan

So, there you have it – everything international employers need to know about employee benefits in Germany. With the information in this article, you’re well-equipped to get started formulating a benefits plan that not only satisfies the legal authorities but captivates your ideal candidates.

Professional Type	How They Can Help
HR Professionals	Deliver labor law insights, design benefit plans, and answer general questions about compliance.
Employer of Record (EOR)	Act as a legal employer for your Spanish employees, draft contracts, and manage statutory benefits, among various other functions. *
Professional Employer Organization (PEO)	Act as the co-employer for your Spanish employees, assist with legal compliance, and handle common HR and payroll functions. **
Attorney	Give tailored advice about your legal obligations as an employer hiring Spanish talent.
Payroll Specialists	Pay your Spanish employees, administer the benefit plan, and manage contributions to Spanish Social Security and other funds.
* You don’t have to establish a legal entity in Spain to use an EOR. ** You have to establish a legal entity in Spain to hire Spanish employees through a PEO.

So, there you have it – employee benefits in Spain with a focus on mandatory benefits, supplementary benefits, and resources to explore. We hope you found all the information you were looking for, and we wish you the best as you learn more about the inner workings of hiring in Spain.