(+34) 913 497 100 | Home Doing Business Labour market Labour market Spain has a flexible labour market and a solid range of incentives for the creation of employment. The Spanish labour market provides a legal framework that favors effective labour management relationships, facilitates job creation and stable employment, and fosters entrepreneurial activity. In order to attract talent, Spain’s central and regional governments have made great strides in social rights and equal opportunity and treatment in the workplace. Types of contracts The employment contract is an agreement that binds companies and workers. It may be open-ended or have a time limit. There are four types of contract in the Workers Statute: permanent, temporary, training and work experience, each with its own characteristics and peculiarities. More info Social Security Workers registered in the General Social Security Program are obliged to pay contributions to the Social Security System and their employers are responsible for withholding the percentage of earned income that the employee is required to contribute. More info Hiring incentives Government incentives for hiring mainly amount to reductions in the employer’s social security contribution. The aim is to encourage new permanent or open-ended hiring that can result in significant savings for the employer. More info Wage costs Minimum wage is established by the government every year for persons over 18 years of age and amounts to 950 Euros a month or 13,300 per year (including 12 monthly and 2 bonus payments) for 2021. Wage costs in Spain are very competitive compared to those in neighboring countries. Many wages are covered by collective labor agreements. Prevention of occupational hazards Companies must guarantee the health and safety of their workers and the prevention of occupational hazards must be part of the business management system through an occupational hazards prevention plan. More info Employment termination Employment termination will depend on the judge’s determination of grounds for dismissal, whether all conditions for firing have been met, and if the legal process has been followed. The ruling may find the dismissal to be fair, illegal or void. More info Contact us Our advisors will inform and support you in setting up your business CONTACT US Our brands: Invest in Spain About Us Global Network Regions Innovation Startups Sustainability LATAM Desk China Desk Publications Events What's on Why Spain Economy Infrastructures Talent Taxation Quality of Life Industries Aerospace Agri-food Audiovisual Automotive and mobility Chemical industry ICT Life Sciences Logistics and transport Renewable Energy Tourism and Leisure Doing Business Company set up Taxes Labour market Aids and incentives Visas Intellectual property Living in Spain We help you Innova Invest Smart Technology Fund Investors Network Investor Services Rising Up in Spain Social Networks European Regional Development Fund A way to make Europe All rights reserved. ICEX © 2020 Legal Terms Privacy policy Cookies policy Site Map Accessibility COOKIES NOTICE We use our own and third-party cookies exclusively for internal and analytical purposes. They allow us to remember, control and understand how users navigate through our website so we can offer a service based on the user's browsing information. Some belong to third parties in countries whose legislation does not guarantee an adequate level of data protection. Click here for more information about our cookie policy. You can accept all cookies by clicking the "Accept" button or configure or reject their use by clicking "Settings". ACCEPT SETTINGS