Payroll Services in Spain
Employment in Spain is highly regulated, with the main purpose to protect an employee’s rights. The regulations are complex: jobs are grouped into categories, and each category has a different set of regulations, called the convenio colectivo. These convenios regulate, for example, the legal salary range for each job, hours in a work day, vacation days per year.
Our advice to employers in Spain:
- Be aware that salaries are lower in Spain than in northern Europe and the USA.
- When making a salary offer to someone in Spain, make sure you quote a gross annual salary rather than a net salary, so you’re not in for a rude surprise.
- Companies have traditionally avoided giving indefinite contracts because of the difficulties in laying off such employees, and the high compensation package involved. Consequently, the Spanish mentality is such that receiving an indefinite contract is almost as important as what salary they will actually receive.
- You can’t be too careful about employee issues. Spain is not a litigious country EXCEPT when it comes to an employee who has been fired.
At Incwell, we guide you through the complexities to make sure all your hires conform to the Spanish regulations. As soon as they are ready, we post your payslips and employee contracts to your online account.