Employee Benefits in Spain (2025 Overview)

Spain is an attractive place to do business, giving access to the European market and allowing you to grow your business abroad. If you’re thinking of working with team members in Spain you’ll need to know how to put together a compliant and attractive benefits package to recruit the best people. Some Spanish benefits are mandated by law and can be quite different to those you’re used to in the US - so doing your research is essential.

This guide walks through the mandatory employee benefits in Spain and some extra options you may also want to consider. And while you’re thinking about taking on international employees, why not also take a look at BatchTransfer. Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

Table of contents
Statutory employee benefits in Spain Supplemental employee benefits in Spain

Who gets workplace benefits in Spain?

Many of the legislation around employment which you’ll need to know in Spain falls under the Estatuto de Los Trabajadores - the Law on the Workers’ Statute¹. The provisions in this legislation apply to temporary and permanent employees, but may not apply to contractors and freelancers.

It’s very important to note that failing to comply with employment legislation in Spain could result in penalties for the employer - and as Spanish benefits, entitlements and leave work in a quite different way to in the US, you’ll need to make sure you get local advice to stay on the right side of the law.

Bear in mind also that some benefits in Spain are set out in Collective Bargaining Agreements made with unions. As these will then be set out as a contractual agreement, these become mandatory as well as the conditions described in the Law on the Workers’ Statute.

This guide is intended for information only. Managing employee benefits - particularly in a different country - can be complex, and can have financial and legal consequences if you get it wrong. Take professional advice if you’re ever unsure about your obligations.

Employee vs. Independent Contractor

As in most countries around the world, employees in Spain tend to have stronger legal protections, and more benefits compared to individuals considered to be contractors. The employment status of anyone you’re working with in Spain should be clearly defined and set out in writing for the avoidance of doubt.

Describing someone as a contractor rather than an employee, to avoid needing to pay benefits or offer employment protections is not legal. If you’re not sure whether you’ll be taking on an employee or a local contractor you may need to take legal and tax advice to make sure you get the best fit for your business needs.

Statutory employee benefits in Spain

Employee benefits in Spain span financial support and paid or unpaid leave, with a heavy emphasis on helping employees to achieve a good work life balance. Let’s start off with a run through of the key statutory benefits offered to Spanish employees. On top of that, many employers choose to add in more benefits to attract top talent - we’ll explore this later, too.

1. 13th-month or 14-month salary

Generally, salaries in Spain are paid out over 14 payments annually. There’s a regular monthly wage, and additional payments - pagas extraordinarias - which are typically made in summer and then just before Christmas. This agreement will be set out in the employee’s contract or arranged through a collective bargaining agreement, which means it is mandatory.

2. Statutory Health Insurance

Employers in Spain pay into the social security fund called the Tesoreria General de la Seguridad Social - TGSS. The employee must also make a small monthly contribution to this fund which is withheld from wages. This health insurance offers access to medical care in state facilities.

The distribution of benefits in Spain is managed by the National Social Security Institute (INSS). Payments made by employers and employees are also used by the INSS to offer other benefits to people in Spain such as state pensions, disability, maternity and paternity benefits

3. Overtime Pay

The maximum working week in Spain is 40 hours. While overtime is allowed, there’s an annual cap of 80 hours worked². This policy is designed to encourage a better work life balance. If you do work overtime you’re entitled to pay which must not be less than your normal pay rate - and in most cases, the employer will pay additionally for overtime, around 1.5x normal rates.

4. Paid Annual Leave

Annual paid leave in Spain must be no less than 30 calendar days. Employees can not buy back holiday leave, and annual vacations must include at least one 2 week block taken all together. As we’ll see a little later, as Spanish workers value their time away from the workplace it’s actually common to offer more holiday than this, to make sure your business stands out in a competitive recruitment climate.

5. Statutory holidays

There are around 14 public holidays in Spain on top of these days of leave, although the exact number of public holidays can vary slightly depending on the region.

6. Leave entitlements

Aside from annual paid time off, there are also public holidays, and a selection of other leave entitlements which depend on the individual’s circumstances. In total this can mean employees taking quite a lot of time out of the workplace, depending on their situation.

For example, at the time of marriage you can get 15 days of additional leave. You can get 1 day off to move house. And if a relative suffers death, an accident, serious illness, hospitalisation, or similar, you can take 2 - 4 days off work depending on the location.

Employers must also allow pregnant employees time off for checkups, and allow trade union members and organizers to take time off to fulfill their duties.

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7. Sickness and Disability Leave

Spanish law allows for employees to take sick leave as long as they provide a medical certificate. Usually the first 3 days of being out of the workplace are unpaid, with a payment of 60% of normal salary made for days 4 to 20 of leave. Beyond this, payments can be made up to 18 months of sick leave at 75% of salary, subject to approval by the INSS. There are caps and limits on the amount of pay that employees can receive in the case of sickness absence.

Some employers will offer more than the statutory minimum sick pay, either by topping up payments in the first few days before the government scheme begin, or by increasing the amount paid to 100% of normal salary instead.

8. Maternity, Paternity & Partner Leave

Maternity leave in Spain is paid for up to 16 weeks. There’s a 6 week mandatory leave period immediately after giving birth, and a new mother can then choose to take the rest of the paid leave as 10 weeks of full absence from the workplace, or as 20 weeks of half days of leave if preferred. There’s an increase in leave to 18 weeks for multiple births or in the event of birth complications. Pay is up to 100% of salary, subject to caps.

Partner leave, which can include paternity leave, but can be used by the second parent, regardless of gender, is also available for 16 weeks. Again the first 6 weeks after the birth are mandatory, and the remaining 10 weeks can be taken at any time in the child’s first year.

9. National Minimum Wage

The national minimum wage in Spain is 1,134 EUR per month, in 14 payments annually at the time of research³. This is regularly reviewed and may change in future.

10. Contributory Unemployment Benefit

Employers in Spain make a contributory unemployment payment which is around 5.5% of salary. Assuming that individuals have met certain minimum employment levels, they’ll then be able to get government support if they’re laid off in future. Usually this means you’ll need to have worked and contributed to social security for a fixed number of days over the past 6 years to be able to apply for benefits.

11. Pension Benefits

Spain has a comparatively high state pension on a global scale. This is funded through taxes and employer contributions to the TGSS. However, recently there have been changes in the law to encourage the use of private company pensions as well as the government operated schemes.

12. Workers’ Compensation Benefits: Insurance and Severance

In the case of redundancy or lay off, employees are entitled to severance payments which can be around 20 - 30 days pay per year of service, to a maximum amount of 12 months in total. The exact terms here may be impacted by Collective Bargaining Agreements, and the number of people being laid off at one time. No severance payment is required if someone is laid off through a disciplinary process.

Supplemental employee benefits in Spain

To make sure you can attract the very best team members for your business in Spain, you’ll need to create a compelling and comprehensive benefits package, which will go beyond the minimums set out by law. Here are a few common benefits which your employees may value and look out for.

1. Short-term sickness benefits

Spanish law mandates that sick pay is available from the 4th day of absence, but it is paid at a lower level than the usual salary, of 60% to 75% of the normal pay rate. Some employers may prefer to supplement this mandatory payment to make sure employees are able to access sick pay immediately, or to top up the payment amount to full salary. This can be an attractive benefit for many people who want to know they’ll be looked after in the case of illness.

2. Private Health Insurance

Private health insurance is a very commonly used benefit to attract professionals in Spain. Access to private health care can mean getting faster treatment and a broader range of services. You may also be able to access a different selection of providers when you need help.

Health care packages can vary a lot in scope, and may also include support for dental and vision care. You could also consider offering additional services such as telehealth support and employee wellness programs to encourage good mental health and work life balance alongside meeting basic medical needs.

3. Private Pension Plans

Although Spain has very good state pension options compared to many countries, many companies do choose to offer additional private pension plans for employees who want them. These can be used to top up the state pension, and may offer tax benefits. Where an employer has a private pension plan on offer, they’ll usually pay in a set amount for their employees, who may then also choose to add funds to the pot for later use.

4. Additional paid time off

Spanish people value work life balance and so even though the annual leave entitlements set out in laws are pretty generous, you may choose to top up the leave available for your team. You could offer more annual leave than is mandated by law, or offer different types of leave such as sabbaticals and career breaks, or time off to complete professional qualifications for example. By offering more than the mandatory amount required by law you can make your business stand out as an employer and improve morale and engagement.

Ultimately, the benefits package you put together to help you recruit in Spain will vary depending on your industry and the type of people you’re hoping to attract. You’re obliged to comply with all relevant laws, but beyond that you can be creative with offering a range of attractive benefit options to bring in the best people for your business in Spain.

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Country Articles	Learn More About Employee Benefits
Australia	Employee Benefits in Australia: A Complete Guide
Singapore	Employee Benefits in Singapore: A Complete Guide
UK	Employee Benefits in UK: A Complete Guide
Brazil	Employee Benefits in Brazil: A Complete Guide
South Africa	Employee Benefits in South Africa: A Complete Guide
Spain	Employee Benefits in Spain: A Complete Guide

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Sources:

1. Law on the Workers’ Statute
2. Spanish government - working entitlements
3. Spanish government - minimum wage announcement