Working in Spain: Remuneration

Remuneration is established either through collective bargaining or in the individual contract, and involves two fundamental concepts:

• basic pay
• fringe benefits

The latter reward, inter alia, length of service, bonuses, profit-sharing, distance and transport bonuses, workplace bonuses (for difficulty, toxicity, hazardousness, shift work, night work, etc.), production bonuses for quality or quantity of work, maintenance, accommodation and residence in island provinces, Ceuta and Melilla, etc.

Remuneration must be paid for periods not exceeding one month; the employer must provide the employee with a payslip with a clear breakdown of the different amounts and corresponding deductions and referring to calendar months. The employee signs it after delivery of the corresponding sums; if paid by bank transfer the employer provides the employee with a copy.
The employer ensures that the statutory tax and social security contributions are deducted.

Workers are entitled to at least two extra payments per annum: 

• the amount is agreed by collective agreement or by agreement between the employer and the workers' representative; one is usually paid at Christmas and the other in the month established by collective agreement or by agreement between the employer and the workers' representative. They can also be paid on a monthly pro rata basis if agreed by collective agreement.

The Minimum Wage

The minimum wage (SMI) is regulated annually by the government, in consultation with trade unions and more representative business associations. 

Minimum Wage for Casual or Temporary Workers

The daily amount of a professional salary may not be lower than €24.29 [2005] per legal day in the activity. If the working relationship is less than 120 days, the employee must receive, together with the minimum daily wage established, the proportional part of the payment for Sundays and public holidays and two established additional payments.

They must also receive the proportional part corresponding to the minimum legal holiday, assuming that the holiday benefit period and the validity period of the contract do not coincide.

Minimum Wage for Domestic Workers

The amounts per day and per hour are the same as those indicated in the section on the minimum wage. Nevertheless, those who work by the hour will receive a minimum of €4.01 per actual hour of work. This amount includes the proportional part of additional payments and holidays.

Wage Guarantee

An independent body attached to the Ministry for Employment and Social Affairs guarantees payment of wages to workers and compensation for dismissal or termination of the labour relationship, and wages outstanding as a result of the employer's insolvency, temporary receivership, bankruptcy or arrangement with creditors.

Text last edited on: 06/2005

Source: European Union
© European Communities
Reproduction is authorised.