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Spain Country Guide: Navigating Employee Benefits in Spain

Spain boasts some of the most stringent worker protections in the world, shaped by regulations from the European Union, the Spanish Constitution, and the Workers’ Statute (Estatuto de los Trabajadores). 

That’s why in the previous article, we uncovered with you a guide on navigating compliance in Spain, highlighting several key areas of interest when it comes to hiring compliance in the country. 

Now, we venture deeper into the next-steps of hiring talent in Spain: discerning employee benefits that are crucial in shaping employment experience. From essential statutory entitlements to captivating added perks, this guide will navigate you through the diverse landscape of benefits in Spain, and empower you to effectively attract the country’s talent.

Employee Benefits in Spain: What to Know Before Hiring

attract top talent in spain with benefits

Statutory Benefits

Employees in Spain enjoy a range of statutory benefits that ensure their well-being and work-life balance. Let’s explore some of these key benefits, mandated by law, available to employees in Spain: 

  1. National and Local Holidays: Spain boasts a rich cultural heritage, reflected in its numerous national holidays. Do also take note of local holidays, especially when it comes to hiring talent in different cities.

  2. Annual Leave: Employees in Spain are entitled to a minimum of 22 working days of paid annual leave, which is equivalent to 30 calendar days. It is also good to be transparent and explicit about if they are working or calendar days.

  3. Insurance: Social security coverage for employees, which includes healthcare, unemployment benefits and retirement pensions, is a requirement for employers in Spain. This is automatically calculated into the company’s cost in payroll. 

Paid Permits: Employees are entitled to paid time off for certain life events, such as marriages, childbirth, or the passing of a close relative. Find out more about paid permits in the respective collective agreements between you and the employee.

Added Benefits

In addition to statutory benefits, many employers in Spain offer added employee perks to enhance overall employee experience and attract top talent, which goes above and beyond the legal requirements. Let’s delve into some of these common added employee benefits offered in the Spanish workplace:

Private Insurance

From specialist consultations to elective surgeries, many employers provide private health insurance that typically covers medical expenses not covered by the public healthcare system.

Flexible Salary Options

Flexible Remuneration allows employees to allocate up to 30% of their gross salary towards discounted products or services, which can include food, transportation, education, health insurances, and even non-taxable benefits like physical wellness and electronics.

Thus, flexible remuneration results in tax exemptions, reducing the IRPF paid for these items and increasing net salary by up to 15% annually. Over 70% of companies utilize Flexible Compensation to enhance team conditions, offering triple benefits: increased net salary, no additional salary costs, and improved motivation and well-being among employees.

Guardería Benefits (Childcare)

Recognizing the challenges faced by working parents, many employers offer assistance with childcare expenses. This can include subsidies for daycare services or onsite childcare facilities.

Food & Transportation

Some employers provide meal vouchers or subsidies to help employees cover the cost of meals during work hours. Additionally, transportation subsidies or allowances may be offered to assist employees with commuting expenses, such as reimbursement for public transportation fares or subsidies for fuel costs for employees who commute by car.

Navigate Hiring in Spain Effortlessly

In this guide, we shared with you some of the most common benefits that companies adopt to retain top talent. Amidst the competitive talent market, companies could also employ more enticing benefits such as mental health counseling, training, and extra days of holidays, to boost their employer branding.

For global employers, ensuring that employee benefits attract top talent in Spain can be very challenging at the outset. Engaging an Employer of Record (EoR) partner to hire abroad is a strategic move, but it is also important to understand the intricacies highlighted above and ensure that your partner is able to provide support and guidance for any questions you may have. 

If you find yourself in need of a trusted and experienced hiring partner for talent in Spain, our team of experts at Talentvibe are here to help.

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