When setting up or expanding your business operations in Spain, it's essential to understand the intricacies of hiring, compliance, tax laws, payroll, and leave regulations: 1. Social Security Contributions: Employers and employees contribute, supporting pensions, unemployment benefits, and leave due to illness or accidents. 2. Unemployment Insurance: Mandatory contributions by employers (5.5%) and employees (1.55%) support those out of work. 3. Wage Guarantee Fund (FOGASA): Employers contribute to ensure employees are covered in case of company insolvency. 4. Professional Training Fund: Funds continuous learning, with employers contributing 0.6% and employees 0.1%. 5. Income Tax: Progressive rates apply, with state and regional components impacting monthly payroll deductions. 6. 13th and 14th-Month Pay: Common but not mandatory; these payments are expected by most employees and need careful handling in payroll. 7. Minimum Wage: As of 2024, the minimum monthly wage for full-time workers has been set at €1,134. 8. Maternity and Paternity Leave: Maternity leave is typically 16 weeks, and paternity leave has been equalized to the same length. 9. Sick Pay: Employers cover days 4-16 of an illness, with subsequent days covered by social security. 10. Public Holidays and Paid Leave: Employees are entitled to a substantial amount of leave, including 14 public holidays and a minimum of 30 days paid vacation. For more detailed insights on payroll and tax regulations in Spain, visit the Horizons website. This resource can provide further guidance and updates on compliance with Spanish employment law: https://joinhorizons.com/countries/spain/spain-peo/ Utilizing an EOR like Horizons can significantly streamline your HR operations in Spain, allowing you to focus more on strategic activities and less on administrative complexities​. How an EOR like Horizons can assist in Spain: 1. Simplify Compliance: Horizons can manage the complexities of Spanish labour laws, ensuring full compliance with employment contracts, benefits, and payroll regulations. 2. Handle Payroll and Taxes: From processing monthly salaries to handling statutory deductions and ensuring accurate tax filings, Horizons can manage all aspects of payroll. 3. Facilitate Employee Management: Whether onboarding new hires or dealing with leave and terminations, Horizons offers comprehensive HR services that ease the administrative burden on your company. #spainemployment #spanishpayroll #laborlawspain #hrspain #spanishjobs #payrollspain #workinspain #hiringinspain #spanishholiday #maternityleaveSpain #paternityleaveSpain #minimunwageSpain #socialsecurityspain #taxcomplianceSpain #businessspain