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In Spain, employees are entitled to a period of paid annual leave that cannot be substituted by financial compensation and must be agreed to in the employee's collective agreement or individual contract. In no case can the duration of paid annual leave be less than 30 calendar days (equivalent to 22 business days of leave).

The leave period will typically be set by mutual agreement between the employer and the employee in accordance with the provisions (where appropriate) of any collective agreements on annual vacation planning.

In Spain, the maximum duration of sick leave is 12 months (365 days). However, it can be extended another six months (180 days) if a cure is foreseen in this latter period. The law distinguishes between common illnesses and occupational illnesses. The latter refers to a chronic ailment that occurs as a result of work or occupational activity.

A public medical practitioner must examine employees who suffer from a temporary incapacity to work. The practitioner fills out a medical report and submits it to the INSS (National Social Security Institute) where it will then be transmitted to the employer.

During the first three days of illness, the worker is usually compensated by the employer, although the law does not mandate that the employer pay the employee during this time. From day four to day 20, the employee receives 60% of their regular wage, and after day 20, they receive 75% of their regular wage. From day four to day 15, the employer is liable to pay the wage, and after day 16, it is funded by the INSS (Spanish Social Security System). Collective agreements may have different sick leave arrangements.

In Spain, employees are entitled to 19 weeks of maternity leave (plus 2 additional weeks in the case of multiple births). The maternity leave period should be enjoyed continuously and is independent of any leave taken to attend medical examinations or due to a health risk during pregnancy. The mother may choose to begin maternity leave up to 4 weeks before the child is born, and at least 6 weeks must be utilized immediately after childbirth. If both the mother and father work, the mother may grant part of her maternity leave to the father, provided that she enjoys a minimum of 6 weeks postpartum and that her returning to work does not constitute a risk to her health. In cases of adoption and foster care, both pre-adoptive and permanent, of minors up to six years of age, the suspension will have a duration of 19 uninterrupted weeks and is extendable in cases of multiple adoptions. Under Spain's current law, women can transfer up to 10 weeks of leave to the father.

Single parents are entitled to 32 weeks of leave, equal to the combined leave that a two-parent family would receive.

In Spain, fathers are entitled to 19 weeks of paid paternity leave. The Spanish social security system provides leave at 100% of covered pay. Leave can be taken either on a full or part-time basis, at a minimum rate of 50% of regular working time. 2 days of birth leave (separate from the paternity leave and paid for by the employer) are also provided to new fathers, with an extra 2 weeks added for multiple births, adoptions, or foster care. Single parents are entitled to 32 weeks of leave, equal to the combined leave that a two-parent family would receive.

The first 6 weeks of the leave must be taken continuously after birth. The remaining 10 weeks may be interrupted and begin on the expiration of the mandatory leave after birth until the child turns 12 months old.

Minimum Wage

Minimum wages, effective retroactively from January 1, 2026, are summarized below (these do not include any benefits paid in-kind):

• The minimum wage for any activity in agriculture, industry, and services (regardless of the sex or age of the workers) is set at EUR 40.70 (euros) per day or EUR 1,221 per month.
• The minimum wage for temporary workers on contracts of up to 120 days is EUR 57.82 per working day.
• The minimum hourly wage for domestic staff in the home is EUR 9.55 per hour worked.

According to the Workers' Statute, all employers are required to provide salaries without any discrimination based on gender. Employers are also required to keep a record of the average values of wages, salary supplements, and non-salary earnings, disaggregated by sex and distributed by professional groups, categories, or jobs of equal value, and including the arithmetic mean and median.

Overtime, Holiday & Vacation Pay

In Spain, regular working hours can last no more than nine hours per day and 40 hours per week, averaged over a reference period of 12 months. Work carried out beyond the hours of the ordinary working day is considered overtime work. Through a collective agreement or individual employment contract, the employer may either pay the employee at least their normal remuneration for working the overtime hours or compensate them by granting equivalent paid rest time. In the absence of any such agreement, overtime is compensated with equivalent rest periods within the following four months after which it was worked.

An employee may not work more than 80 overtime hours per year. The provision of overtime work is voluntary unless its performance has been agreed to in a collective agreement or individual employment contract. Overtime work is prohibited for night workers.

Notice Period

Individual dismissals on objective grounds are subject to a notice period of 15 days, while no notice is required for dismissals on disciplinary grounds. Where notice periods apply, the employer can also decide to pay in lieu of notice. In case of termination of fixed-term employment contracts with a duration exceeding one year, the employer must generally give a minimum notice period of 15 days in advance of the termination date. If an employee resigns, regardless of whether they were hired under an open-ended or fixed-term contract, they must give the employer the notice defined by any applicable collective agreement or by custom and practice in the workplace concerned (generally, the notice period ranges from 15 days to one month, though some collective agreements require a notice period of three months).

Severance Benefits

In Spain, in the event of dismissal for an objective reason (economic or organizational reasons, worker's capacity, etc.), an employee receives severance pay when the written contract termination notice is delivered. The amount of severance pay varies depending on the category of dismissal.

• Objective dismissal: A tax-free payment is provided in the amount of 20 days' salary per year of service, up to 12 months' salary.
• Disciplinary dismissal: If the dismissal is proven in court to be fair, the employee is entitled to no severance. If it is deemed unfair, the appropriate tax-free severance is 33 days' salary per year of service up to 24 months' pay.

Pension

In Spain, employees who have reached the statutory retirement age and have paid social security contributions for the necessary number of years (at least 15 years, two of which must be immediately preceding their retirement) are eligible for an old-age pension. The current retirement age limit is 65 years.

The pension amount is based on the insured's average earnings over a 25-year reference period. For the first 15 years of insurance contributions, the pension is 50%, plus 0.21% for each additional month of contributions up to 146 additional months and 0.19% for each extra month from 147 to 251 months. Beyond that, the pension is paid at 100% of the insured's average earnings. Starting in 2026, Spain will calculate retirement pensions using two parallel systems and automatically apply whichever yields the higher benefit, but the existing method, based on the last 25 years of contributions, remains in force. The maximum benefit for 2025 is EUR 3,267.60 (Euros) per month and 45,746.40 (Euros) per year, paid in 14 payments. Currently, the minimum pension is EUR 15,786.40 per year with a dependent spouse, EUR 12,241.60 per year without a spouse, and EUR 11,620.00 per year with a non-dependent spouse.

Dependents/Survivors Benefits

In Spain, the law provides survivors benefits that become payable if the deceased worker was registered with a social security scheme (or an equivalent) and had paid contributions for at least 500 days in the five calendar years before their death (or a total of 15 years of contributions). No contributions are required for the orphan's pension or if the deceased was a pensioner.

Survivors include the insured's widow(er) (in some cases, also an unmarried partner or divorced spouse), children under 21 years of age (or 24 when they earn only the minimum wage), and other members of the deceased's family (including grandchildren, siblings, grandparents, parents) if they:

• Lived with the deceased for at least two years before the death
• Were dependent on the deceased worker and not entitled to a public pension themselves.

Invalidity Benefits

In Spain, the Social Security system provides disability benefits, categorized as follows:

• Partial permanent disability - A decrease of no less than 33% in performance
• Total permanent disability - 100% decrease in performance of a particular job, but retained ability to work in other jobs
• Absolute permanent disability - 100% decrease in the ability to perform any job
• Great disability - Personal assistance is required to carry out essential acts of life.

Partial permanent disability is paid as a lump sum equal to 24 monthly payments of the average earnings used for the temporary disability that preceded it.
Total permanent disability pays a lifetime pension of 55% of the average earnings, rising to 75% in qualified cases when the beneficiary is over 55 years old and meets reintegration/employment conditions. Absolute permanent disability pays 100% of the average earnings. Great disability pays 100% of the base average earnings plus a supplement for third-person assistance. The average earnings depend on the cause: for common illnesses, it is calculated like retirement pensions (25-year average or 29-year average, dropping the 2 worst years); for work accidents/occupational disease, it is calculated from the prior contribution bases for professional contingencies under special rules.

Personal Income Tax

Spain's national income tax rates for the current tax year are progressive as follows:

• 9.5% for annual income up to EUR 12,450 (Euros)
• 12% for annual income from EUR 12,450 to EUR 20,200
• 15% for annual income from EUR 20,200 to EUR 35,200
• 18.5% for annual income from EUR 35,200 to EUR 60,000
• 22.5% for annual income from EUR 60,000 to EUR 300,000
• 24.5% for annual income exceeding EUR 300,000

Different regions of Spain may impose their own varying rates of regional income tax.

Non-residents who are not residents of an EU member country or a European Economic Area country must pay an income tax of 24% on all Spanish-sourced income. If the non-resident mentioned above has an annual income of over EUR 600,000, the tax rate assessed is 45%. EU residents are taxed at a 19% rate on employment income.

Visas

In Spain, the following are the most common national long-stay visa categories:

• Spanish tourist Schengen visa (valid only up to 90 days)
• Spain visa for business purposes (may require an employer to provide a contract)
• Visa for medical purposes
• Visa for cultural, sports, film crew, or religious purposes
• Visa for members of official delegations
• Visa for studying in higher education, training, research, or for other types of internship purposes
• Visa for the wife or husband of a Spanish citizen
• Spanish airport transit visa
• Visa for under-age children.

Long-term visas (work, residences, studies, family reunification, etc.) must be requested at the Consulate by prior appointment. EU citizens and those from visa-waiver countries do not need a visa to enter Spain.

Work Permits

A Work and Residence Permit is issued by Spain's Labor Authorities and allows employers to recruit outside the European Union (EU). After receiving the Work and Residence Permit from the employer, the employee can apply in person for a Work Visa. For a non-EU hire, the employer starts a formal immigration process before the foreign person can work.

Required documents for the employee include:

• Copy of a valid passport
• Certificate of criminal records issued by the home country
• Official medical certificate
• Three passport-size photographs
• Fiscal registration number (NIE or CIF) and the Social Security registration number of the employer
• Offer of employment
• Job and company description
• Proof of the employer’s solvency.

In Spain, persons under 16 years of age are prohibited by law from working. A work contract concluded with a minor less than 16 years of age is considered void. Any breach of the rules governing the employment of minors by the employer is considered a serious offense. The participation of persons less than 16 years of age in public entertainment events is authorized in exceptional cases by employment authorities, provided that it does not endanger that person's physical health or professional and personal development.

The minimum age for hazardous work is set at 18 years. Minors over 16 years of age and less than 18 years of age require the consent of their parents or guardian to start employment. In any case, persons under 18 years of age are not allowed to work at night, to work overtime, or to engage in any other activities considered by the government to be unhealthy, difficult, detrimental, or dangerous.