How Much Does It Cost to Hire in Spain in 2025?

    Created at: 3 March 2026 - Last updated: 3 March 2026

    cost-of-hiring-spain-2025

    Spain is becoming an increasingly attractive market for North American companies looking to expand. This is driven not only by the country’s growing industries, but also by its relatively moderate total employment costs. While the additional employer/payroll taxes are between 30% to 33% on top of the gross base wage, the contributions are capped and salaries are lower than in a lot of other EU countries. Other key considerations when hiring in Spain include obligatory 13th and 14th month salaries, and sick pay. 

     

    How Much Do Employer Social Security Contributions Cost in Spain? 

    The Spanish social security system (payroll taxes) obliges both the employers and the employees to contribute. Yet, Spanish rules are lenient on employers paying above the €4,909.50/month salary threshold. Only a progressive solidarity contribution starting at 0.92% is applied on the amounts exceeding this base.

    To understand how this system works, here is a table summarizing all the components Employer Social Contribution for salary amounts under €4,909.50/month. 

    Contribution Breakdown under Threshold

    Employer Social Contribution under €4,909.50/month

    % applied amounts under threshold

    Notes

    General Social Security Contribution (common contingencies)

    23.60%

    In Spain, there is a €4,909.50 per month threshold to these social contributions.

    Intergenerational Equity Mechanism (MEI)

    0.67%

    Unemployment

    5.50%

    Salary Guarantee Fund

    0.20%

    Professional Training

    0.60%

    Occupational Accidents & Professional Diseases

    2.05%

    Total Employer social security contribution above the threshold on average

    32.62% 

    Sum of all percentages

    Table 1. Breakdown of employer social security contributions in Spain (2025 data).

     

    Contribution above Threshold

    Starting January 1st, 2025, Spain introduced the additional solidarity contribution that affects employers paying salaries exceeding the maximum contribution base €4,909.50. This contribution follows a progressive tier system.

    Employer Social Contribution above €4,909.50/month

    % applied amounts above threshold

    		 Notes
    Solidarity Contribution (1st Tier)

    0.92%

    		 For amounts up to 10% above the maximum base €4,909.50/month
    Solidarity Contribution (2nd Tier)

    1%

    		 For amounts 10-50% above base
    Solidarity Contribution (3rd Tier)

    1.17%

    		 For amounts above 50% of the base

    Table 2. Solidarity contribution for amounts that exceed the threshold (2025 data).

    This contribution will gradually increase by 0.25% per year until 2045. 

     

    Are there any additional Employer costs in Spain?

    Be aware that other employers' obligations in Spain or other European countries can be complex, due to the use of different languages and systems. This table summarises important costs your company needs to be aware of.

    Cost type

    Employer Costs

    		 Notes

    Public Holidays

    		 14 paid public holidays per year
    Additional Salaries

    Mandatory 13th and 14th month salaries

    		 Typically included within the 12 monthly payments.
    Sick Pay Obligations
    • Day 1-3: Unpaid
    • Day 4-15: 60% of weekly salary 
    • More than 15 days: 75% of weekly salary
    		 These amounts are measured in working days. 

    Table 3. Other employer costs in Spain, such as public holidays, 13th & 14th month salaries, and sick pay obligations (2025 data).

    Note that for the sick pay obligations, employers cover the amount until the 15th day, then it is possible to reclaim any amounts after that from the Social Security Administration.

    To understand more about the Spanish Social Security and all other Contributions, in addition to the benefits employers should offer, read Understanding Employer Social Security Contributions in Spain.


    Cost Example in Practice 

    Consider an example of a sales manager in a small to medium enterprise in Spain. The manager is paid a gross salary of € 5,000 a month.

    Calculation for €3,000 vs €5,000 Salary Employer Costs in Spain

    Employment Costs

    Example 1

    Example 2

     Gross Annual Salary

    € 36,000

    € 60,000

     Gross Monthly Salary

    € 3,000

    € 5,000 

     Employer Social Contribution (in %)  

    Approx 32.62%

    Approx 32,62% on amount below the threshold €4,909.50 + a solidarity contribution of 0.92% on excess amounts

     Employer Social Contribution (in €)  

    € 978.60

    € 1,602.22

    (Sub)Total Monthly Employer’s Cost  

    € 3,978.60 

    € 6,602.22

    (Sub)Total Annual Employer’s Cost 

    € 47,743.00

    € 79,226.64 

    Table 4. Example of comparison of €3,000 and €5,000 Salaries in Spain (2025 data).

     

    What Employment Benefits Are Mandatory for Employers in Spain?

    Employers in Spain are obliged to provide benefits to their employees, such as holiday allowance or sick leave.  

    Employee Benefits in Spain

    Employer Benefits' obligations in Spain

    Benefits

    		 Notes

    Holiday Allowance

    Employees receive 22 business days of paid annual leave.

    		 At least one continuous 2-week period must be taken per year.
    Generous Sick Leave Protection Employees can receive up to a year and a half of paid sick leave. Partially covered by the employer.
    13th & 14th Month Salary Mandatory 13th and 14th month salaries 

    		  
    Maternity & Paternity Leave
    • Maternity leave (17 weeks paid at 100% of salary).
    • Paternity leave (16 weeks or 18 for multiple births - 6 of which are compulsory).
    		  

    Table 5. Employer benefits obligations, such as holiday allowance, sick leave protection, 13th & 14th month salary, and maternity & paternity leaves, in Spain(2025 data).

    For a broader view on how employee benefits are evolving across Europe, check Employee Compensation and Benefits.

     

    Final Thoughts

    Hiring in Spain comes with varying payroll costs and employee benefits. Employers should plan for an additional ~32–33% in social security contributions on top of gross salaries, as well as compulsory 13th and 14th salaries. Even though benefits like paid maternity and paternity leave are covered by social security, employers remain responsible for certain contributions during these absences.

    At EuroDev, we help international employers navigate Spanish and European HR complexities. From payroll and benefits to compliance and cultural adaptation, our tailored HR solutions allow you to focus on growth while we handle the local details.

    Contact us today to explore our full range of HR Outsourcing services.

     

    Written by Sven Brands, HR Outsourcing International Account Manager at EuroDev.

    Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our consultants to ensure that the data presented here is current and accurate.

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