Compensation and benefits are vital to both employees and employers. You’ll need a strong Spain benefit management plan that includes both guaranteed and supplemental benefits to bring in top talent. Plus, you must meet the statutory minimums to stay compliant and avoid any fines.
Globalization Partners can take the stress out of sourcing benefits. Our Spain benefit outsourcing services allow you to run your company while we find the best benefits for your employees. Through Spain compensation outsourcing, we can also hire employees on your behalf and add them to our compliant payroll.
Compensation Laws in Spain
In 2021, Spain’s minimum wage rose to 1,108 EUR per month. However, the actual rate you must pay your workers can change if a collective bargaining agreement (CBA) covers your employees or industry. Overtime can either be compensated monetarily or given through paid time off depending on the employee’s preference.
Spain’s Guaranteed Benefits
Spain has numerous guaranteed benefits that employers must provide to employees. For example, employees get a day off during Spain’s 10 public holidays. The country also has provincial holidays that vary based on your community. Employers are required to provide a minimum of 30 calendar days of paid vacation each year.
Another guaranteed benefit is maternity and paternity leave. Female employees receive 16 weeks of paid leave, of which they must take six weeks off before the child’s birth. They can then take up to one year of unpaid leave after their paid leave and still be guaranteed their job when they come back. Fathers receive 30 days of paternity leave with additional time off if the mother or baby has any complications.
Spain Benefit Management
Another significant part of a competitive Spain benefit management plan is providing any additional benefits that employees expect. Health insurance in Spain is funded through social security taxes, but employers often offer additional coverage for high-level employees. Smaller companies may choose to give an allowance for health and life insurance instead of sourcing the benefits themselves.
Spain’s compensation laws do not require a 13th-month or an annual bonus. However, sales employees usually expect a commission or a quarterly bonus plan. Employees also typically receive additional time off for instances such as:
- Fifteen days off for marriage
- Two days off for the death of a family member
- One day off for home relocation
Restrictions for Benefits and Compensation in Spain
Before you outline specific compensation and benefits in an employment contract, you’ll need to check for any collective bargaining agreements (CBAs) that could stipulate certain restrictions. A CBA will often detail a different minimum wage or amount of paid vacation time. Your employment contract must meet or exceed the CBA’s restrictions.
Why Work With Globalization Partners?
Globalization Partners offers Spain compensation outsourcing to pay your employees the right amounts at the correct time. Our Spain benefit management services will also put your employees on our benefits programs, so you won’t have to worry about sourcing the right benefits. Contact us today to learn more.