Hiring Employees in Spain

Hiring Employees in Spain

Employing staff in Spain.

Hiring in Spain

Spanish employment law is employee-friendly. Understanding the basics protects you.

Employment Costs

On top of gross salary:
  • Employer social security: ~30%
  • Employee social security: ~6.5%

Total cost is roughly 130-140% of gross salary.

Plus: Two extra monthly payments (pagas extras), 30 days holiday.

Contract Types

Indefinido (Permanent): Default type, higher dismissal costs Temporal (Fixed-term): Strict rules on when allowed Formación (Training): For young workers, reduced costs

Dismissal Costs

Unfair dismissal: 33 days salary per year worked (max 24 months)

Example: 5-year employee on €30,000 = €13,562 severance

Tips

1. Use a gestoria for payroll (€50-100/month per employee)

2. Check collective agreements for your industry

3. Document everything—makes fair dismissal possible

4. Consider alternatives: freelancers (carefully), EOR services

Frequently Asked Questions