Spanish labour laws: Wages in Spain
Here's a comprehensive guide to remuneration in Spain, from monthly wages in Spain to Spanish salary requirements and minimum wage.
The SMI (Salario Mínimo Interprofesional) is the minimum payment received by the worker for a legal number of working hours in any agricultural, industrial or service activity, without distinction of sex, age, fixed work, casual or temporary work or personal work within the service of a household. It is set annually by the government. It is considered illegal to hire a worker for a lower salary.
In 2010, the minimum wage for any activity is set at EUR 21.11/day or 14 payments of EUR 633.30/month for a full legal working day. There is no pro-rata payment for Sundays and holidays included in the daily wage.
The annual amount for 2010, including the extraordinary payments, is EUR 8 886.20 as a minimum for workers working a full legal day. If the number of working hours comes to less than a full day, the quantity is proportionally reduced. The quantities indicated above are increased by the appropriate supplementary payments.
Wages for casual or temporary workers
The minimum wage for a professional salary may not be less than EUR 30 per legal day of employment. If the working relationship lasts less than 120 days, the employee must receive, together with the minimum daily wage set, a pro-rata payment for Sundays and public holidays and a pro-rate payment for the two established extraordinary payments.
Workers must also receive a pro-rata payment corresponding to their minimum legal holiday entitlement, always assuming that said holidays are not taken during the contract term.
Spanish wages for domestic workers
The amounts per day and per hour are equal to the minimum wage. Those who work by the hour will nevertheless be paid a minimum of EUR 4.96 per actual hour of work.
The set minimum wage described above is always increased by collective bargaining or through an individual contract with a company.
The salary established in this way comprises:
- Basic pay
- Supplementary payments which are are based on the work conditions: difficulty, toxicity, hazardousness, shift work, night work and other types of production bonuses: for quality or quantity of work, maintenance, accommodation and residence in island provinces and Ceuta and Melilla.
- Pagas extraordinarias (extraordinary payments). Workers have an annual entitlement to at least two extraordinary payments: the number is established by collective bargaining or by agreement between the employer and the workers’ representative. Normally, one is paid at Christmas and another in July. The amount may be paid on a monthly pro-rata basis if so agreed.
The salary must be paid for periods not exceeding one month. The employer must provide the employee with a payslip clearly stating the name of the company and the worker, the salary, deductions (including the worker’s Social Security contributions and IRPF or income tax deductions).
The employer is responsible for collecting all contributions and therefore deducts the correct amount for the income tax (IRPF) and social security contributions due under the law.
The amount deducted for IRPF depends on pay and personal and family circumstances (children and people dependent on the worker). The worker is obliged to inform the employer and provide him with the specific information he needs to calculate the corresponding deduction. In the case of temporary contracts lasting less than one year, the deduction rate is 2 percent.
The employee social security contribution rate is 6.35 percent.
Salary guarantee is an independent body answerable to the Ministry of Employment and Social Affairs (FOGASA) guarantees workers’ salaries and also compensation due to them for dismissal or termination of the working relationship which has not been paid because the employer is insolvent, has ceased payments, gone into liquidation or entered into composition with creditors.
EURES, the European Job Mobility Portal / Expatica
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