A payslip in Spain can often be quite detailed due to the various legal requirements and regulations. Understanding and reading a payslip can be a bit complex due to the various deductions, contributions and taxes. In this post you will find a breakdown of the common components you’ll find on a Spanish payslip.
We hope this gives you a clear understanding of how your total compensation is calculated and distributed. As for any unfamiliar terms on your payslip, if you have specific questions or concerns, it’s recommended to reach out to your company’s HR department or a financial expert for clarification.
This article, ‘Payslip in Spain’, is written by Talent Search People.
Understanding a payslip in Spain
Your data on your payslip in Spain
Employee information
Your name, identification number (DNI/NIE) and contact information.
Antigüedad (seniority or length of service)
This refers to the number of years you have been employed by the company. It’s an important factor in determining certain employment rights and benefits. Some companies offer additional benefits based on the employee’s length of service.
Employer information
Company name, tax identification number (CIF) and contact details.
Pay period
The dates for which the payslip is issued, typically showing the month and year.
Annual leave and sick leave balance
Information about your accrued annual leave and sick leave days, along with any used or remaining days.
Other information
Some payslips might include details about the number of hours worked, overtime hours and any special allowances.
Payslip in Spain: Salary
Gross salary (salario bruto)
Your total earnings before any deductions or taxes.
Personal Income Tax (IRPF - Impuesto sobre la Renta de las Personas Físicas)
This is the income tax deducted from your salary. The rate varies based on your income level and other factors.
Net salary (salario neto)
The amount you receive after deducting taxes, contributions and other deductions from your gross salary.
Total amount paid
This is the sum of your net salary and any additional payments.
Extra payments
If you have received any bonuses, commissions, or other additional payments, they should be listed separately.
Plus convenio (collective agreement bonus)
This term relates to any additional payments that are specified in your employment contract or the collective bargaining agreement (convenio colectivo) for your industry or sector. These could be bonuses or allowances that are negotiated and agreed upon between your employer and relevant employee representatives.
Complemento a bruto (gross salary supplement)
This refers to any supplementary payments that are added to your gross salary. These could be performance-related bonuses, allowances, or other payments that increase your overall earnings before deductions.
Payslip in Spain: Deductions and Contributions
Cotización contribución común (common contribution)
This is the standard Social Security contribution made by both the employee and the employer. It covers various social benefits, including healthcare, pensions and more. The contribution is calculated as a percentage of your gross salary and is intended to fund the broader social welfare system.
Cotización de desempleo (unemployment contribution)
This refers to the contribution made towards the Unemployment Insurance system. Both employees and employers contribute to this fund. The contributions help provide financial assistance to individuals who become unemployed, offering them a certain level of income while they search for new employment opportunities
Cotización formación (training contribution)
In Spain, employers are required to contribute to the ‘Formación Profesional’ (Professional Training) fund. This fund is used to finance training programs for employees. A percentage of your gross salary is deducted by the employer to contribute to this fund, which aims to enhance the skills and qualifications of the workforce.
Prorrata Verano (summer bonus) and Prorrata Navidad (christmas bonus)
These refer to the distribution of your annual bonus payments. In Spain, it’s common for employees to receive two extra payments per year, often referred to as the ‘extra paga‘ or ‘pagas extraordinarias‘.
The ‘prorrata‘ indicates the proportional allocation of these bonuses each month, ensuring you receive a consistent amount throughout the year rather than lump sums during the summer and Christmas months.
Deductions and contributions
Other deductions on a payslip in Spain might include contributions to union fees, health insurance and other benefits. These vary based on your employment contract and any additional agreements you have with your employer.
About Talent Search People
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We are proud to be a team that comes from all over the world and who believes in people’s potential for the development and growth of companies We are 100% dedicated to support, advise, anticipate needs and establish long-lasting relationships with both our clients and candidates.
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