- Gross salary, paid in 14 instalments a year.
- Employer costs of about 32.1% at a €40,000 salary: €12,860 a year, of which the largest is common contingencies (pensions, health, etc.).
- An EOR fee, if you hire without your own entity. The providers in our Spain guide publish starting prices of US$399–699 per employee per month.
Mandatory employer costs at a €40,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.
| Employer cost | Rate or amount | At €40,000 |
|---|---|---|
| Common contingencies (pensions, health, etc.) | 23.6% of gross, up to €61,214 | €9,440 |
| Unemployment (open-ended contract) | 5.5% of gross, up to €61,214 | €2,200 |
| Wage Guarantee Fund (FOGASA) | 0.2% of gross, up to €61,214 | €80 |
| Vocational training | 0.6% of gross, up to €61,214 | €240 |
| Intergenerational Equity Mechanism (MEI) | 0.75% of gross, up to €61,214 | €300 |
| Workplace accident & occupational disease (AT/EP) (estimate) | 1.5% of gross, up to €61,214 | €600 |
| Total employer costs | 32.1% of salary | €12,860 |
Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.
| Annual salary | Employer costs | Total before EOR fee |
|---|---|---|
| €24,000 (junior / support) | €7,716 (32.1%) | €31,716 |
| €40,000 (mid-level professional) | €12,860 (32.1%) | €52,860 |
| €60,000 (senior professional) | €19,290 (32.1%) | €79,290 |
| €85,000 (lead / manager) | €19,680 (23.2%) | €104,680 |
- Contribution ceiling (2026): €5,101.20 / month
- Salary payments per year: Usually 14 (12 + 2 extra)
- Minimum wage (2026): €1,221 / month × 14
- Paid annual leave: 30 calendar days
- Standard working week: 40 hours maximum
- Private health insurance (optional benefit) (€600 / year): Common benefit in tech and professional roles; not required by law.
- Contributions are calculated on a monthly base capped at €5,101.20, so earnings above roughly €61,200 a year attract no further standard employer contributions.
- A small solidarity contribution applies to earnings above the ceiling from 2025 and rises gradually. It is not included in these estimates.
- Employee social security (about 6.5% including the employee MEI share) and IRPF income tax are deducted from gross pay and are not employer costs.
- Fixed-term contracts carry a higher unemployment rate (6.70% instead of 5.50%), and very short contracts carry an extra fixed contribution.
- Collective agreements can add costs, such as extra payments above two, seniority bonuses or allowances.
Without your own entity in Spain, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Spanish S.L.. See the comparison in our Spain guide and EOR vs local entity.
How much does it cost to employ someone in Spain?
At a €40,000 salary, employer costs add about €12,860 a year (32.1%), for a total of about €52,860 before any EOR fee.
How much is an EOR in Spain?
The providers in our Spain guide publish starting prices of US$399–699 per employee per month, on top of salary and employer costs. See the EOR pricing tracker.
Can I hire in Spain without a local entity?
Yes, through an Employer of Record, which becomes the legal employer and runs payroll and contributions. See EOR in Spain.
- 2Real Decreto 126/2026: minimum wage (SMI) for 2026
BoletÃn Oficial del Estado (BOE)
Sets the 2026 minimum wage at €1,221 a month in 14 payments (€17,094 a year).