Hiring in Spain: Getting Started

Updated March 27, 2026 19:41

This article is about Justworks EOR (Employer of Record). What product am I using?

Quick Hiring Snapshot

Capital: Madrid
Currency: Euro (EUR)
Primary language: Spanish (regional co-official languages in certain autonomous communities)
Statutory workweek: 40 hours per week (maximum average for full-time employment)
Minimum wage: Spain has a statutory national minimum wage (set by the government), and employers must ensure pay meets applicable minimums
Typical pay frequency: Monthly (14-payment structure common)
Public holidays: Each municipality can observe a maximum of 14 public holidays per year, made up of national, regional, and local holidays
Key employment framework: Spanish Workers’ Statute (Estatuto de los Trabajadores) and our applicable collective bargaining agreement, CBA for Consulting, Information Technologies, and Market and Public Opinion Research Firms
Hiring without a local entity: Available through Justworks EOR

Overview

Spain has a structured and employee-protective labor system governed by the Workers’ Statute and supported by sector-specific collective bargaining agreements.

Employment relationships are formal and regulated, particularly in areas such as written contracts, working time limits, probation rules, social security contributions, and dismissal procedures.

When hiring through Justworks EOR, Justworks serves as the legal employer in Spain. We manage compliant employment contracts, payroll processing in euros, statutory registrations, and required social contributions. Your team member works day to day with your organization, while employment compliance is handled within Spanish legal requirements.

This guide provides a high-level overview of what to expect when hiring in Spain.

Note: This article is for informational purposes only and does not constitute legal or tax advice.

What Employers Should Plan for When Hiring in Spain

Employment Contracts

Employment contracts are required by law in Spain.

A Spanish-language version of the contract must be included, even if an English version is also provided.

Employers must also notify the Spanish Public Employment Service (SEPE) within 10 days of the contract start date.

Indefinite employment is the standard contract form in Spain. Written agreements should clearly define salary, working time, probation period, and notice terms.

Collective Bargaining Agreements

Most roles in Spain are governed by an applicable collective bargaining agreement.

Justworks applies the 19th State CBA for Consulting, Information Technologies, and Market and Public Opinion Research Firms, based on our Madrid entity.

This CBA sets binding minimums for salary levels, working hours, overtime treatment, probation limits, and other employment terms.

Working Time

Spain’s statutory maximum working time for full-time employment is 40 hours per week on average.

Employers must also comply with the following guardrails:

A 15-minute break after more than 6 hours of continuous work
At least 12 consecutive hours of daily rest between shifts
At least 1.5 uninterrupted days of weekly rest

Employers may request irregular distribution of working hours (“banking hours”) of up to 10% of annual working time, provided at least 5 days’ notice is given and legal/CBA limits are respected.

Overtime

Overtime in Spain is highly restricted, and it must be compensated with time off enjoyed the same year when the extra hours were worked..

Overtime must comply with statutory limits and applicable CBA provisions.

Probation, Notice, and Termination

Probation periods are permitted but subject to statutory limits:

Up to 6 months for qualified skilled workers
Up to 2 months for other workers
Special rules apply for employers with fewer than 25 employees

Under the Justworks Spain employment model, the default probation period is 2 months (60 days).

Termination during probation requires notice only and does not require severance.

Outside probation, termination in Spain is formal and categorized by type (e.g., objective dismissal, disciplinary dismissal). Statutory severance payments may apply depending on the type of dismissal and tenure.

Compensation Expectations

Employees in Spain are paid in euros (EUR), typically on a monthly payroll cycle.

Spain’s compensation structure commonly includes 14 payments per year, consisting of:

12 regular monthly payments, plus
2 statutory bonuses (“extraordinary payments”), commonly referred to as the 13th and 14th month salary

These extra payments may be prorated across 12 months, depending on the applicable agreement. This is the way they are handled at Justworks.

Employers must also budget for employer social security contributions, which fund public healthcare, pensions, unemployment benefits, and other statutory protections.

When hiring through Justworks EOR, payroll and statutory contributions are administered in accordance with Spanish law.

Common Industries and Market Compensation

Spain’s labor market is diverse, with strong activity in services, technology, finance, and operations — sectors that are commonly supported by EOR hiring models. The national average gross salary is around €31,600 per year (about €2,633/month), but this varies significantly across industries and roles.

1) Technology & Digital Services

The Spanish tech sector is one of the fastest-growing, especially in Madrid, Barcelona, and increasingly Valencia. Demand is strong for software developers, data professionals, and IT specialists.

Software Engineer / Developer: ~€35,000 – €60,000+ per year (varies by experience and specialization)
Senior Engineer / Tech Lead: ~€60,000 – €90,000+ per year
AI/Data roles: can exceed €70,000 for highly experienced professionals, especially in data science and machine learning

Tech roles are frequently filled through EORs because demand outpaces local supply in some regions, and companies hire remotely or without a local entity.

2) Financial Services & Professional Services

Finance, accounting, and corporate services remain a core part of the Spanish employment market, particularly in Madrid and Barcelona.

Financial Analyst / Accountant: ~€30,000 – €45,000 per year
Finance Manager / Senior Corporate Role: ~€50,000 – €80,000+ per year

These roles are also common in shared services, consulting, and back-office functions — areas where international companies frequently use EOR arrangements.

3) Operations, Customer Support & Shared Services

Spain is a hub for multilingual customer support and shared services centers, especially in cities like Malaga, Sevilla, and Barcelona. Employment in these sectors continues to expand.

Customer Support Representative: ~€20,000 – €30,000 per year
Customer Success / Operations Specialist: ~€35,000 – €55,000 per year

These roles are often ideal fits for EOR models, particularly for international companies seeking to centralize operations in Spain.

Compensation Disclaimer: The salary ranges provided above are for general informational purposes only and reflect broad market benchmarks at a point in time. Actual compensation may vary based on factors such as location, experience level, industry demand, company size, and economic conditions. Employers should conduct their own market research and benchmarking analysis before making a formal employment offer to ensure compensation is competitive and aligned with local market standards.

Statutory Programs and Social Security

Employees in Spain participate in the public social security system.

Employer and employee contributions fund:

Public healthcare
State pensions
Unemployment insurance
Disability and family benefits

Employers are responsible for registering employees with Spanish Social Security and administering payroll contributions accordingly.

When hiring through Justworks EOR, required registrations and statutory contributions are handled in compliance with Spanish legal requirements.

Country-Specific Leave

Annual Leave

Employees are entitled to at least 30 calendar days (or 23 working days) of paid annual leave per year.

Public Holidays

Each municipality can observe up to 14 public holidays per year, composed of national, regional, and local holidays. Public holidays are separate from annual leave entitlements.

Sick Leave

Employees who are unable to work due to illness may receive temporary disability benefits through the social security system, subject to eligibility and statutory rules.

Maternity and Paternity Leave

Spain provides structured family leave protections:

Maternity leave: Generally 16 weeks
Paternity leave: Generally 16 weeks

Statutory benefits are administered through the social security system, subject to eligibility.

Hiring in Spain Through an Employer of Record

If your company does not have a Spanish legal entity, direct hiring would require incorporation, tax registration, social security enrollment, and compliance with Spanish labor law and applicable CBAs.

Through Justworks EOR, Justworks serves as the legal employer in Spain. We manage compliant employment contracts, payroll processing, statutory social contributions, and required reporting. Your employee works with your organization while employment compliance is handled within Spanish regulatory requirements.

This structure allows companies to expand into Spain while navigating its structured and employee-protective labor system in a compliant way.

Official Resources for Employers in Spain

For additional guidance, employers may consult the following official sources:

FAQ

Can I hire in Spain without establishing a local entity?

Yes. Through Justworks EOR, you can hire employees in Spain without setting up your own Spanish legal entity.

Are collective bargaining agreements applicable?

Yes. Justworks applies the 19th State CBA for Consulting, IT, and Market Research Firms (Madrid entity), which sets binding minimum employment terms.

Is overtime unlimited?

No. Overtime is highly restricted in Spain and it must compensated with time off (unless agreed otherwise).

How much annual leave is required?