Article
4 min read
Employer Costs for an Employee in Spain (2026 Guide)
Employer of record
Global hiring
Author
Jemima Owen-Jones
Last Update
February 05, 2026
Quick answer: What is the total employer cost for a $100,000 salary in Spain?
For an employee earning $100,000 USD annually in Spain, employers can expect mandatory employer costs of approximately $21,249 USD per year, bringing total compensation costs to $121,249 USD.
Estimated total employer cost (Spain): ~21.2% on top of gross salary (example estimate).
Hiring in Spain can be a great way to access skilled talent—whether you’re expanding into Europe, building a remote team, or hiring your ideal candidate locally.
But even when two employees earn the same salary, the total employer cost varies by country due to statutory contributions, payroll requirements, and mandatory insurance programs.
This guide provides a ballpark estimate of the mandatory employer cost of hiring an employee in Spain, using an example salary of $100,000 USD per year.
What’s included in this estimate?
This estimate includes mandatory employer-side statutory costs that may apply when hiring an employee in Spain, such as:
- Medical exam allowance
- Work-from-home (WFH) allowance (where applicable)
- Mandatory disability fund contribution
- Common contingencies (social security coverage)
- Unemployment contribution
- Salary guarantee fund contribution
- Professional education contribution
- Temporary disease and incapacity coverage
- PRL (risk prevention) training
- Social insurance solidarity contribution
What’s not included in this estimate?
This estimate generally does not include additional costs such as:
- Paid annual leave (vacation)
- Sick pay beyond statutory/insured coverage
- Private health insurance
- Employer-provided benefits or allowances beyond those listed
- Bonuses, equity, or commissions
- Equipment and onboarding expenses
- Costs that vary by region, industry, or employee category
Why employer costs vary in Spain (and globally)
Employer costs can differ depending on:
- Income thresholds and contribution rules
- Employee classification and contract type
- Industry-specific requirements
- Whether WFH allowances apply
- Changes in regulation year to year
- Currency exchange rate fluctuations (if you pay in a different base currency)
Estimated employer cost breakdown for Spain
Below is an estimated breakdown of mandatory employer costs for hiring an employee in Spain earning $100,000 USD/year.
Example salary used in this estimate
- Annual gross salary: $100,000 USD
- Annual gross salary (approx.): €97,069 EUR
Employer mandatory costs (estimated)
| Employer Cost Category | Estimated Annual Cost (EUR) | Estimated Annual Cost (USD) | Notes |
|---|---|---|---|
| Medical Exam | €960 | $989 | Yearly allowance for medical exam |
| WFH Allowance | €600 | $618 | Fixed-rate remote work allowance |
| Mandatory Disability Fund Contribution | €492 | $507 | Mandatory disability fund support |
| Common Contingencies | €13,697 | $14,111 | Social security coverage (non-occupational accidents, maternity, retirement, etc.) |
| Unemployment | €3,116 | $3,210 | Unemployment insurance contribution |
| Social Fund for the Guarantee of Salaries | €113 | $117 | Employer insolvency protection fund |
| Professional Education | €340 | $350 | Training contribution |
| Temporary Diseases and Incapacity, Death and Survival | €850 | $875 | Coverage for incapacity and related benefits |
| PRL Training | €132 | $136 | Occupational risk prevention training |
| Social Insurance Solidarity | €326 | $336 | Solidarity contribution |
| Total Estimated Employer Costs | €20,626 | $21,249 | Total mandatory employer cost estimate |
Total compensation cost (salary + mandatory employer costs)
| Total | EUR | USD |
|---|---|---|
| Gross Salary | €97,069 | $100,000 |
| Mandatory Employer Costs | €20,626 | $21,249 |
| Total Compensation Cost | €117,695 | $121,249 |
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FAQs
How much does an employee cost beyond salary in Spain?
Employer costs in Spain include employer social security contributions, unemployment contributions, and mandatory funds for training and wage protection. These costs are calculated using the employee’s contribution base, so total employer cost can increase for higher salaries.
What is the social security system in Spain?
Spain’s social security system funds public benefits such as healthcare, pensions, unemployment support, and certain leave protections. Employers contribute through payroll, which is why social security is one of the largest mandatory employer costs in Spain.
What are employer social security contributions in Spain?
Employer social security contributions are statutory payroll contributions paid on top of gross salary. They help fund pensions, healthcare, unemployment, and other protections under the Spanish social security system.
Do employers pay personal income tax (IRPF) in Spain?
No. Personal income tax in Spain (called income tax IRPF) is paid by the employee. However, employers are responsible for withholding IRPF from wages and remitting it through payroll as part of legal payroll compliance.
How does IRPF affect the amount the employee receives?
Because IRPF is withheld from gross salary, the amount an employee receives (net pay) is usually lower than the gross salary shown in the contract. IRPF withholding impacts take-home pay, even though it’s not typically an additional employer-paid cost.
How does sick leave work in Spain?
Sick leave in Spain is supported through the social security system, and employer obligations can vary depending on the length of the absence and employment terms. Employers should plan for sick leave costs as part of overall workforce budgeting.
What is professional training and why is it included in employer costs?
Professional training contributions are mandatory payroll payments that support employee training and workforce development programs. This is why professional training often appears as a line item in Spain employer cost estimates.
What is the minimum wage in Spain and does it affect employer costs?
Spain has a statutory minimum wage (Salario Mínimo Interprofesional). As of 2025, the minimum wage is €1,134 per month paid over 14 installments per year (€15,876 annually). Employers must meet this legal baseline under Spanish labor laws, and changes to the minimum wage can directly affect hiring budgets for entry-level and hourly roles.
How many days of paid leave do employees get in Spain (30 calendar days)?
Employees in Spain typically receive 30 calendar days of paid annual leave as a common statutory baseline. This paid time off increases total employment cost because employees remain paid while not working.
Is 15 days required for leave or notice in Spain?
In Spain, 15 days may apply in certain employment situations (such as notice requirements or specific leave-related rules) depending on the type of contract and the employee’s circumstances. Employers should confirm the applicable rule in the employment agreement and local compliance guidance.
What should employers consider when managing payroll in Spain?
When managing payroll in Spain, employers must calculate gross pay, apply social security contributions, withhold IRPF, and ensure compliance with statutory reporting requirements. Payroll costs can vary depending on salary, contract type, and contribution base calculations.
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
