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Working in Spain: Remuneration
Make sure you know how the salary structure works before you take on a job...
Each year the Government sets the “Interprofessional Minimum Wage”. This is the minimum received by the worker in any agricultural, industrial or service activity, regardless of sex, age, fixed or casual work. It is considered illegal to hire a worker for a lower wage.
In 2011, the minimum wage for any activity is set at EUR 21.38/day or 14 payments of EUR 641.40/month for a full legal working day. If the number of working hours comes to less than a full day, the quantity is reduced proportionally. The quantities indicated above are increased by the appropriate supplementary payments.
Casual or temporary workers: a professional wage may not be less than EUR 30.39 for a legal day’s work.
Domestic workers: the amounts per day and per hour are equal to the minimum wage. Those who work by the hour will nevertheless be paid a minimum of EUR 5.02 per actual hour of work.
This amount includes payment for the extraordinary payments and for holidays.
These minimum wage amounts are always increased by collective bargaining with a company. The wage established in this way comprises:
- Basic pay
- Supplementary payments: difficulty, toxicity, hazardousness, shift work, night work, etc
- ‘Pagas extraordinarias’ [extraordinary payments]: workers have an annual entitlement to at least two extraordinary payments: the number is established by collective bargaining or by agreement between the employer and the workers’ representative. Normally, one is paid at Christmas and another in July. The amount may be paid on a monthly pro-rata basis if so agreed
Wages are generally paid on a monthly basis, and never for longer periods. The employer must provide the employee with a payslip clearly stating the details of the company and the worker, the wage, deductions (including the worker’s Social Security contributions and IRPF (income tax) deductions).
The employer is responsible for making all contributions and therefore deducts the correct amount for the income tax (IRPF) and Social Security contributions due under the law.
The amount deducted for IRPF depends on pay and personal and family circumstances (children and people dependent on the worker). The worker is obliged to inform the employer and provide him with the specific information he needs to calculate the corresponding deduction.
The employee social security contribution rate is 6.35%.
Wage guarantee: an independent body called FOGASA guarantees workers’ pay and compensation due to them for dismissal or termination of the working relationship.
Text last edited on: 07/2011
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