Social security in
Spain

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 29.90%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Madrid & Barcelona.

We offer fair, scalable, and transparent pricing on Spain PEO service. Contact us for a cost breakdown

End service in Spain with no additional penalties or fees.

Including vision & dental, necessary for Spain.

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Spain

Social security in Spain – Overview

Both employers and employees must pay social security contributions in Spain. Employer social security costs are relatively high in Spain, and the benefits provided to Spanish citizens is considered good.

What does the social security system in Spain cover?

The social security/social insurance program in Spain covers the following:

Healthcare
Sick leave, paternity/maternity leave
Inability to work
Unemployment (el paro)
Public Pension

To qualify for the benefits, employees must have paid into the system for at least 180 days in the last five years. To retire with the Spanish state pension, employees must have paid into the Spanish social security system for a minimum of 15 years.

What are the mandatory contributions for employees to social security in Spain?

For employees, the average contribution is around 6.36% of salary (as of Jan 2021).

What are the mandatory contributions for employers to social security in Spain?

For employers, the total mandatory social security contribution is at least 32.1% of employees’ salaries (up to a maximum of just over €3,500 per month). It can be more if the work is considered risky according to the employment law of Spain.

How do mandatory contributions compare to the surrounding countries?

Mandatory contributions for employers in Spain is approximately 32.1% of the employee’s salary. In Portugal, the mandatory contribution is much lower for employers at 11% of the employee’s salary. In France, the minimum mandatory contribution is higher, at 42% of the employee’s salary.

Hiring in Spain, Made Easy

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.

FAQs

How much do employers need to contribute to social security in Spain?

Employers in Spain must contribute 32.1% of employees’ salaries (max. €3,500 per month) to social security in Spain.

What situations does social security cover for employees in Spain?

The social security system in Spain covers the following situations:

Healthcare
Sick leave, paternity/maternity leave
Inability to work
Unemployment (el paro)
Public Pension

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