Work and Wages

Minimum Wage

In Spain, the Government annually fixes the interoccupational minimum wage by Royal Decree following a period of consultation with the most representative trade unions and employers’ associations. Wage rates are also fixed through collective agreement. The minimum wage legislation applies to workers from all occupations: agriculture, industry, services. Government fixes minimium wage taking into account the inflation rate, economic development and productivity, cost of living, needs of workers and their families and Level of wages and incomes in the country. The minimum wage legislation applies to workers from all occupations: agriculture, industry, services. The minimum wage legislation does not apply to certain workers, including public servants, executive directors, unpaid familiy workers, voluntary workers. Also, all workers are entitled to two bonuses per year, one of them on the occasion of Christmas and the other in the month that is set by collective agreement or by agreement between the employer and the workers’ legal representatives. The amount of these bonuses will also be set by collective agreements.

Any omission or action performed by the employer in violation of labour legislation or collective agreements is considered a labour offence. An authorised labour inspector may carry out inspection work to ensure compliance with labour legislation and collective agreements. Fines depend on the seriousness of the crime and may range between 60 euros and 37,920 euros.

Sources: §1, 11(1-2), 26(3), 27 & 31 of the Royal Decree No. 2/2015 enacting the Workers' Statute enacting; §5 & 40 of the Royal Legislative Decree No. 5/2000, on Offenses and Penalties in the Social Order

Regular Pay

Wage means all economic benefits, in cash or in kind, that the employee obtains (from the employer) for the rendering of services. This benefit should be enough to cover the worker’s needs, and those from his family. The employer may pay an employee his or her salary in cash, by cheque, or by direct credit transfer into the employee's bank account. The employer must give the employee an individual receipt for the salary payment, which must adhere to the Official Form of the Ministry of Labor and Social Affairs. Wages are generally paid on a monthly basis, and never for longer periods. The employer must provide the employee with a payslip clearly stating the details of the company and the worker, the wage, deductions (including the worker’s Social Security contributions and IRPF (income tax) deductions). The employer is responsible for making 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 payment of salaries has to be punctual and documented on the date and in the place agreed on or in accordance with practices and customs. The periodic wage payment period may not exceed one month. The worker and, with his/her authorization, his/her legal representatives, have the right to receive advances to the account of work already done, without being obliged to wait for the appointed day of payment. An employer is obliged to pay 10% interest on late salary payment.

The Statute of Workers requires that the payment of wages is reflected in a payslip. The payslip must clearly reflect the payments (base salary, allowances, wages in kind, non-wage payments, etc.) and deductions (taxes, social security contributions, etc.) and must follow the model established in the collective agreement of reference. In the absence of a collective agreement, the payslip must be in the format approved by the Order No. ESS/2098/2014.

Sources: Royal Decree No. 2/2015 enacting the Worker's Statute Art.26 & 29


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