Indefinite is the default
Temporary contracts need a statutory ground. Chaining them converts the relationship toward indefinite.
Europe · Hiring guide · 2026
Hiring in Spain: labour law and payroll
This page is the labour-law and payroll stack for multinational employers hiring in Spain. It is not a salary survey.
In-country employment is how you run this stack without a Spanish company.
To hire without incorporating first, use in-country employment in Spain.
Contracts
Contracts and probation
Convenio colectivo
The sector agreement can set higher minima, extra payments, and working-time rules. Read it before you name a salary.
Probation
Maximum probation is set by the Estatuto and the convenio (often two months for skilled staff, shorter for others). Put it in writing.
Hours
Working time and overtime
Hours
Maximum ordinary working time is generally 40 hours a week as an annual average. Daily rest and weekly rest are statutory.
Overtime
Overtime is voluntary unless the convenio says otherwise, capped (generally 80 hours a year that are paid, not compensated as rest), and paid at a premium or as time off.
Pagas extras
At least two extra payments a year (Art. 31 ET), usually summer and Christmas, unless prorated into 12 monthly payments.
Wage floor
Minimum wage, 2026
SMI 2026 can be paid as 14 or 12 instalments. Employer TGSS is roughly 30% of the base. These are not market salaries.
| Rule | Figure |
|---|---|
| SMI 2026 (14 payments) | €1,221 / month (€17,094 / year) |
| SMI 2026 (12 payments, prorated) | €1,424.50 / month |
| Employer social security | About 30–32% of the contribution base for an indefinite contract (2026 max base €5,101.20 / month) |
| Pagas extras | Two extra payments a year unless prorated |
SMI figures are from Real Decreto 126/2026. A convenio often sets a higher floor and extra supplements. Model the offer on annual cash, then split 12 vs 14 so the candidate is not surprised in July.
Exit
Terminating and offboarding
Objective vs unfair dismissal
Valid objective dismissal: generally 20 days' salary per year of service, cap 12 months. Unfair (improcedente): 33 days per year, cap 24 months.
Finiquito is separate
Every exit needs a settlement of unpaid salary, unused vacation, and prorated pagas extras. That is not severance.
Procedure
Written notice, hearing for disciplinary dismissal, and deposit of severance where the type of dismissal requires it. A Slack message is not notice.
Questions
FAQ
- What is the 2026 minimum wage in Spain?
- €1,221 per month on 14 payments, or €1,424.50 if paid in 12, totalling €17,094 a year.
- Are the two extra payments mandatory?
- Yes, at least two a year under Article 31 of the Workers' Statute, unless they are prorated into monthly pay by contract or convenio.
- How much is employer social security?
- Plan around 30–32% of the contribution base for an indefinite contract, including common contingencies, unemployment, FOGASA, training, MEI, and accident insurance.
- Can we dismiss without cause?
- No. Budget the 20- or 33-day formula plus the finiquito. Spain is not an at-will jurisdiction.
Other markets
Other hiring guide pages
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
- Estatuto de los Trabajadores — Art. 31; dismissal rules
- Real Decreto 126/2026 — SMI 2026
- TGSS 2026 contribution rates and maximum base
Hire in Spain
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