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Spain
Spanish healthcare is publicly funded, so you don’t need to offer private health insurance and most employers don’t, except for some high-level positions. Expats who live, work, and pay social security contributions in Spain are entitled to public healthcare access.
Pensions in Spain are funded by both the employee and employer. Employees must contribute 4.7% of salary while employers must contribute 23.6%. Offering higher-than-mandatory pension contributions is a common benefit and a good way to attract the country’s top talent.
Spain has a range of laws to support people with disabilities. From the perspective of employers, the most important law requires employers to hire disabled workers at a rate of 2% of their total workforce, regardless of workforce size. There are some alternatives if this target can’t be met, for example, employers can subcontract disabled workers or donate to certain approved organizations.
Disability benefits are paid in the case of disability impacting an employee’s ability to work, with varying payments depending on the nature of the disability. This is covered by the country’s social security system.
Workers in Spain on indefinite-term contracts who are terminated are generally entitled to severance equaling around one month’s pay for every year worked, plus an extra month upon termination.
Unemployed people can also receive unemployment benefits, covered by the country’s social security system, if they have made social security contributions for at least 360 days.
Hire borderless talent with Horizons
Your business can easily hire employees in Spain without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Mandatory benefits in Spain include:
Note that the healthcare system in Spain is publicly funded, so employers don’t need to offer private health insurance.
Horizons can cover any employee benefit you want to offer in Spain. We ensure full compliance with the labor law by making sure all mandatory benefits are offered, and provide our client company flexibility in which other benefits, and how much, they want to offer their employees in Spain.
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