Employee benefits in Spain

Summary
Employee benefits in Spain are shaped by a combination of statutory entitlements and a growing range of company-provided extras. The national Social Security system ensures a basic level of support for all employees, covering essential needs such as universal healthcare, income protection, and pensions. Collective agreements often improve on statutory minimums, particularly in sectors with strong union representation. Recent updates to family leave policies and the implementation of the EU Work-Life Balance directive reflect a broader focus on employee wellbeing.
Spain distinguishes between flexible compensation (retribución flexible) and social benefits offered by employers. Flexible compensation allows employees to convert up to 30% of their gross salary into non-salary benefits. These typically include private health insurance, meal vouchers, childcare support, and public transport passes, all of which enjoy specific tax exemptions under Spanish law. Social benefits, on the other hand, are provided in addition to salary and are not deducted from gross pay.
Tax Considerations
Tax rules in Spain are governed primarily by the Personal Income Tax Law (Ley del Impuesto sobre la Renta de las Personas Físicas (IRPF)) and the Social Security system (Ley General de la Seguridad Social). Employees pay both income tax and social security contributions, with income tax charged at progressive national and regional rates from 19% to 47%, depending on income and the autonomous community. Employers are also required to contribute social security as a portion of an employee’s salary. Most employee benefits are treated as income in kind and taxed accordingly unless specific exemptions apply.
Explainer Guides
Foundational
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Income Protection / Disability
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Key Features – How Does It Work?
Employees in Spain are entitled to a daily allowance Prestación de Incapacidad Temporal from the Seguridad Social if they are temporarily unable to work. This is available for up to 365 days, extendable for another 180 days if recovery is expected within that time, and is calculated as a percentage of the employee’s salary. Temporary disability insurance offered by employers supplements the public system by offering an additional amount to maintain their usual income level. This is normally a set daily amount, between €30 and €200.
Cost and Funding
Temporary disability insurance may be fully funded by employers or offered through flexible compensation schemes, where employees allocate a portion of their salary to cover the premiums. The cost of the premium is determined by the size of the insured group, the nature of the work, and the level of coverage selected. Employers can also negotiate group rates, further lowering the cost of the policy.
Taxation
In cases where the employer funds the policy, the premiums are considered a business expense and are tax-deductible. Premiums paid by the employer are generally considered a benefit in kind for the employee and must be included in their taxable income. Payouts received by the employee under the policy are treated as employment income and are subject to income tax and social contributions.
Implementation and Administration
To implement temporary disability insurance, employers should work with a broker or select an insurance provider and agree on policy terms, including the level of coverage. HR departments manage the enrolment and coordinate with the insurer to submit claims documentation when an employee is on certified medical leave. Many providers offer digital platforms where employers can administer policies and employees can view their coverage details.
Other Considerations
Employers should consider how income protection insurance integrates with other employee benefits such as personal accident insurance and mental health support. When choosing a policy, employers should consider including extras such as daily hospitalisation payments or second medical opinions to provide more comprehensive care.
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Life Insurance
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Key Features – How Does It Work?
In Spain, employer-provided life insurance, known as Seguro de Vida Colectivo, is a group policy that offers financial protection to employees’ beneficiaries in the event of death. Coverage typically includes a lump-sum payment to beneficiaries in the event of the insured employee's death. This sum can be uniform for all employees or vary based on factors like salary or job category.
Cost and Funding
Premiums can be fully funded by the employer or offered through flexible compensation schemes, where employees allocate a portion of their salary to cover the premiums. The cost of group life insurance premiums depends on factors such as the size of the insured group, the average age of employees, and the level of coverage. Employers may also negotiate group rates with insurers to lower the cost of the policy, making it significantly cheaper than an individual policy.
Taxation
In cases where the employer funds the policy, the premiums are considered a business expense and are tax-deductible. Premiums paid by the employer are generally considered a benefit in kind for the employee and must be included in their taxable income. Payouts received by the beneficiary are subject to inheritance tax.
Implementation and Administration
To implement a group life insurance policy, employers should work with a broker or insurance provider to define the terms of the policy, including coverage levels, eligibility criteria, and premium payment arrangements. HR teams typically manage the enrolment process and coordinate with the insurer for policy administration and claims processing. Employees are usually asked to designate a beneficiary at the time of enrolment. Many insurers offer digital platforms to provide employees with access to their coverage details.
Other Considerations
Some employers may have minimum criteria for employees to qualify for the insurance, such as the form of contract, working hours, or a probationary period. Employers should communicate the details of the policy clearly to employees, including coverage amounts, how to designate a beneficiary, and the claims process.
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Private Health Insurance
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Key Features – How Does It Work?
Spain has a public health system known as Sistema Nacional de Salud, which is funded through social security contributions and provides universal healthcare to all residents. While this system offers comprehensive coverage, it is often associated with long wait times for non-urgent procedures and specialist appointments. To complement this, many employers offer private health insurance to provide quicker access to consultations and greater flexibility in choosing providers. Most plans cover general medicine, specialist visits, diagnostic tests, and hospitalisation, and often dental or optical services.
Cost and Funding
Private health insurance premiums are usually funded either fully or partially by the employer. Many companies offer optional coverage for spouses and children, which the employee may either co-fund or pay for in full. Because these are group plans, the premiums are significantly cheaper than individual policies. On average, premiums range between €40 to €70 per employee per month.
Employee-paid premiums may be included in a flexible compensation regime if the employer offers this option.
Taxation
Private health insurance provided by an employer is tax-exempt for the employee up to a limit of €500 per year per beneficiary. Amounts above this threshold are considered a benefit in kind and subject to income tax. If the premium amount is deducted from gross salary under a flexible compensation regime set up by the employer, it remains tax-exempt within the same limits.
Implementation and Administration
Employers typically partner with an insurer or broker to choose a policy. HR departments are responsible for managing enrolment lists and payroll deductions (if employees contribute). Dependants are normally added during open enrolment periods, though many policies allow flexibility for life events such as births or marriages. Claims and medical authorisations are managed directly between the employee and the insurer.
Other Considerations
Employers should ensure employees are aware of any exclusions, such as pre-existing conditions or waiting periods for certain treatments. Companies with remote or distributed teams should confirm whether the coverage includes all regions of Spain, as some providers may have regional limitations.
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Retirement Funds
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Key Features – How Does It Work?
Spain’s retirement system is built around the public pension, managed by the Seguridad Social. This system is funded by contributions from the employer and employee. The public pension can replace up to 80% of an employee’s final salary (for those with long contribution history). However, concerns about the sustainability of the system have led to growing interest in employer-sponsored pension plans (planes de pensiones de empleo). This is supported with legislative changes in the past decade to encourage take-up. Private schemes are voluntary and set up as defined contribution arrangements. The structure of the plan and the benefits on retirement differ by policy.
Cost and Funding
Employer contributions are often between 2% to 5% of gross salary. Employee contributions are mainly voluntary, via salary sacrifice arrangements or personal contributions.
Taxation
Employer contributions are exempt from income tax and social security contributions, up to €8,500 per year. Employee contributions are also tax-deductible up to a standard limit of €1,500, but this limit may be higher if the employee matches employer contributions. Where the employer offers a flexible compensation scheme, employees can redirect part of their gross salary into the pension plan under a salary sacrifice arrangement. Withdrawals are taxed as income at retirement.
Implementation and Administration
Employers should work with a broker or insurer to choose a policy. Plans should define eligibility, vesting periods, and how benefits are managed. Contributions are typically managed via payroll, and most providers offer digital portals where employees can track their savings and estimate retirement income.
Other Considerations
Although private pension plans are voluntary, certain sectors may include them in collective bargaining agreements. Employers should also ensure clear communication about tax implications, payout options, and portability when leaving the company.
Family
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Assisted Reproduction
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Key Features – How Does It Work?
In Spain, reproducción asistida is accessible both through the public healthcare system and private health insurance. The public system covers up to three cycles of assisted reproduction for eligible individuals, regardless of marital status or sexual orientation, though waiting lists can be long. Basic private health insurance plans rarely include full fertility treatment coverage, but mid- and high-tier policies from major insurers may cover artificial insemination and IVF attempts, subject to age limits and waiting periods. Employer support for assisted reproduction is increasingly available through these enhanced private health insurance policies. These policies may cover diagnostic tests, hormone treatments, and a specified number of insemination and IVF cycles.
Cost and Funding
Many employers already offer private health insurance to their employees. Plans that include assisted reproduction coverage will carry a higher premium to reflect more generous policy terms. Employers may choose to offer this as part of a standard policy or have employees fund the gap.
Taxation
Private health insurance provided by an employer is tax-exempt for the employee up to a limit of €500 per year per beneficiary. Amounts above this threshold are considered a benefit in kind and subject to income tax. If the premium amount is deducted from gross salary under a flexible compensation regime set up by the employer, it remains tax-exempt within the same limits. Financial support provided outside of health insurance, such as a lump sum or reimbursement payments, is likely to be considered taxable income.
Implementation and Administration
Employers should review their existing private health insurance policies to determine the extent of assisted reproduction coverage and consider offering enhanced or supplementary plans if needed. Employees can access covered treatments directly through their insurance provider, typically after meeting the required waiting periods and age criteria.
If an employer chooses to provide direct financial support outside of insurance (such as a reimbursement or allowance), this should be administered through payroll.
Other Considerations
Policies should be inclusive and supportive of diverse family structures. Employers should also consider offering flexible work arrangements and mental health support to further assist employees seeking treatment.
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Childcare Support
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Key Features – How Does It Work?
Many employers in Spain offer childcare assistance through flexible compensation regimes, encouraged by tax-advantaged government schemes. The most common format is the childcare voucher (cheque guardería), which allows employees to allocate part of their gross salary to cover childcare expenses. These vouchers are issued by third-party providers and are accepted at approved childcare centres.
Cost and Funding
Childcare support is typically employee-funded via a flexible compensation plan. The employee chooses an amount to be redirected from gross salary each month to pay for childcare. The employer manages the arrangement but does not usually contribute directly, unless offering it as a subsidised benefit. Employers cover the service fee charged by third-party providers to manage the childcare benefit, which may be a flat monthly rate or a per-employee cost.
Taxation
Amounts allocated to childcare through a flexible compensation plan are exempt from income tax, provided the service is used for children under the age of three and the childcare provider is authorised by the local education authority. There is no specific monetary cap on the amount that can be spent on childcare services as long as they are with an appropriate provider.
Implementation and Administration
Employers who wish to offer childcare support should partner with a provider who issues childcare vouchers. They can then advertise the benefit for selection as part of a flexible compensation plan, where employees voluntarily opt in. HR or payroll teams manage enrolment, ensure the correct deductions from gross salary, and coordinate with a third-party administrator to issue the vouchers. Vouchers are increasingly offered in a digital format or through a prepaid card. Employees use the vouchers to pay directly at the childcare centre of their choice, as long as it is listed as an authorised provider. The employer should take care to ensure compliance with tax regulations, especially regarding the child’s age and provider accreditation.
Other Considerations
Employers should provide clear information on how the scheme works, what expenses qualify, and the potential impact on other public benefits.
Finance
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13th Month Pay
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Key Features – How Does It Work?
Extra payments (paga extraordinarias) are a fundamental part of the Spanish labour system. All employees are entitled to two payments each year, commonly referred to as 13th and 14th month salaries. These are typically paid in December (Christmas) and June or July (Summer), though some employers offer the amounts as pro-rated payments over 12 months.
Cost and Funding
Each extra payment is equal to one month’s base salary, though some employers may vary this calculation based on factors such as seniority, tenure, or specific terms outlined in collective agreements. If an employee has not completed 12 months of service before the bonus is due, the payment is calculated proportionally. All employers should budget for these costs as part of their annual payroll planning.
Taxation
Extra payments are treated as regular salary for tax purposes and are subject to the same income tax and social security contributions as ordinary monthly wages. If the extra payments are prorated, the relevant contributions are included each month; if paid as lump sums, the deductions are applied at the time of payment.
Implementation and Administration
Employers should have a clear policy on whether extra payments are distributed as two lump sums or pro-rated over the year. Payroll teams are responsible for the calculation and disbursement of these payments. Employers must follow any additional requirements set out in collective agreements.
Other Considerations
Any policy should clearly address how extra payments are handled for employees who join mid-year or leave a company before the scheduled bonus dates.
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Earned Wage Access
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Key Features – How Does It Work?
In Spain, the right to request a salary advance payment for work already performed is part of the Workers’ Statute. Many companies now work with digital tools that automate the process, allowing employees to make the request online or via an app. This may be integrated into HR and payroll software, or be offered as a standalone benefit with its own app.
Cost and Funding
Since the right to request a salary advance is mandated by law, employers are responsible for ensuring this is provided without cost to the employee. If a company uses a digital platform to automate or facilitate access to earned wages, any associated service fees must be paid by the employer. These tools are often included as part of broader HR or payroll software subscriptions. In all cases, the employee must receive the requested amount in full without deductions.
Taxation
There are no additional tax implications for the employee as they are simply receiving part of their regular salary early. Normal income tax and social contributions are applied as part of the regular pay cycle.
Implementation and Administration
Employers must comply with the legal right to salary advances. Digital platforms simply make this easier to manage by automating payroll integration and giving employees self-service access. When using software, it is still the responsibility of the employer to ensure requests are processed promptly and that all employees can use the service without restrictions on eligibility.
Other Considerations
Employers must fulfil any request for an advance on earned salary, and cannot restrict access based on role, tenure, or performance. What digital platforms offer is a way to simplify this obligation, reduce admin, and improve employee experience. To avoid confusion, employers should clearly communicate that the right to wage advances exists with or without technology, and that these tools are simply there to make the process more convenient.
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Financial Advice & Coaching
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Key Features – How Does It Work?
Financial advice and coaching is typically offered through digital platforms that provide employees with access to budgeting tools, financial education content, and the option to speak with professional advisers. Services can include one-to-one coaching, group workshops, and personalised planning for savings, debt reduction, or retirement. Some employers also offer this benefit through pension providers or as part of a broader financial wellbeing package.
Cost and Funding
These programmes are usually funded by the employer as part of a subscription model with a financial wellness provider. Costs vary depending on the level of service, but many platforms offer tiered access, allowing companies to scale the offering. Employees typically access the service for free, though some employers may cap the number of one-on-one sessions per year.
Taxation
When offered as a general service available to all employees, financial advice and coaching is treated as a business expense and is not considered a taxable benefit. However, if the service is tied to personal financial products or involves individualised investment advice with a clear financial value, it is likely to be considered a benefit in kind for the employee.
Implementation and Administration
Employers typically partner with a financial wellness platform or consultancy. The service can be integrated into HR platforms or offered as a standalone app. HR teams should communicate the service clearly and provide access instructions. Employees can then access resources at their own initiative.
Other Considerations
Employers should ensure the content and delivery of financial advice is unbiased and does not promote specific financial products unless independently regulated. Programmes should be inclusive, offering advice relevant across income levels and life stages. Offering financial education as part of onboarding or during key career milestones can improve take-up and impact.
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Personal Accident Cover
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Key Features – How Does It Work?
In Spain, personal accident insurance (seguro de accidentes personales) is a common workplace benefit designed to provide financial protection in the event of an accident resulting in death or disability. These group policies are often tailored for employers and may be mandatory under collective bargaining agreements. Coverage typically includes death, permanent and temporary disability, and may extend to certain medical expenses related to accidents. Policies are designed to operate 24/7, meaning they cover both work-related and non-work-related accidents.
Cost and Funding
Personal accident insurance is usually fully funded by the employer. Premiums are based on the number of insured employees, the industry’s risk profile, and the level of cover selected. Because these are group policies, the cost per employee tends to be low, especially in low-risk sectors. Employers often negotiate multi-year agreements with insurers to reduce rates further.
Taxation
Premiums paid by the employer are considered a business expense and are tax-deductible. The benefit is not generally considered a taxable benefit in kind for the employee, provided it complies with legal definitions of social welfare benefits. Payouts received by employees or their beneficiaries in the event of a covered accident are exempt from personal income tax.
Implementation and Administration
To set up a policy, employers should partner with an insurer or broker and agree on coverage terms and insured amounts. HR teams are responsible for communicating coverage to staff and maintaining up-to-date records. Claims are normally processed directly by the insurance provider. Many insurers offer digital portals to manage policies and claims efficiently.
Other Considerations
Employers should be aware of any accident coverage obligations under collective agreements. While personal accident cover is distinct from life or health insurance, it complements both and can be part of a broader risk protection strategy. For full transparency, employers should ensure employees understand what is and is not covered, particularly when policies exclude high-risk activities or pre-existing conditions.
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Workplace Loans
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Key Features – How Does It Work?
Workplace loans are employer-provided loans offered to employees at low or zero interest rates. In some sectors, these are included in collective bargaining agreements, requiring employers to offer them. There are no official limits on the size or purpose of these loans, with companies that offer this benefit typically establishing a list of specific purposes for which they can be issued. Repayment is deducted directly from the employee’s salary each month through the payroll system.
Workplace loans are distinct from salary advances, which are a legal right. While salary advances are limited to work already performed, workplace loans can cover larger amounts with longer repayment periods.
Cost and Funding
A workplace loan is funded directly by the employer and does not involve a third-party financial institution. This creates an immediate impact on company cash flow, along with associated administrative efforts, though the money is eventually repaid, resulting in a neutral cost over time. The arrangement must be formalised through a proper contract between the company and employee.
Taxation
If the interest rate offered by the employer is below the official legal interest rate, the difference is considered a benefit in kind and subject to income tax. This benefit must be reflected in the employee's payslip and is fully taxable. Employers are responsible for reporting the value of this benefit. If a loan is forgiven, the value is considered income and taxed accordingly.
Implementation and Administration
Employers should define clear internal criteria for applying for a loan. Any loan agreement should be formalised through a written contract detailing the loan amount, repayment terms, interest rate, and the process in case of early termination of employment. Employers may set conditions related to the employee's salary or tenure. Repayments are typically managed through payroll, spreading the total repayment across a series of monthly deductions.
Other Considerations
Workplace loans are more commonly included in collective agreements within the financial industry, where they may be a standard employee benefit. Employers should clearly communicate the tax implications of a reduced-interest or interest-free loan to ensure employees understand the full financial impact. While these loans can support financial wellbeing, employers should avoid positioning them as a replacement for financial wellbeing benefits.
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Workplace Savings & Investment
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Key Features – How Does It Work?
Spain offers two primary employer-supported workplace savings options outside of pensions: Seguros de Ahorro (savings insurance) and Planes de Ahorro para Empresas (corporate savings plans). Both are designed to encourage long-term savings and reward employee loyalty. Seguros de Ahorro are structured as collective insurance contracts where the employer holds the policy but each employee has an individual allocation. These are considered low-risk accounts, often including guaranteed interest and optional life coverage. In contrast, Planes de Ahorro function more like deferred savings plans or bonus-linked schemes. They offer greater flexibility and investment potential but typically come without capital guarantees. The contract is more flexible with some employers offering payouts after 3 to 5 years. In both cases, contributions and eventual payouts are individualised to the employee.
Cost and Funding
Employers are the primary contributor to workplace savings plans. Employers may contribute a fixed amount or percentage of salary, often linked to tenure, performance, or management level. Employee contributions are also possible, with some employers offering matching programmes to encourage investment. In Seguros de Ahorro, the contribution rules are more likely to be fixed. Planes de Ahorro are more customisable, with options for the employee to increase contributions or defer their bonus into the account.
Taxation
Employer contributions to workplace savings plans are generally treated as a business expense and are tax-deductible. They are generally considered a benefit in kind for the employee if they are individually attributed. Employee contributions are made from net salary. The benefit is subject to taxes when it is paid out.
Implementation and Administration
Employers should work with an insurer (for Seguros de Ahorro) or a financial provider (for Planes de Ahorro) to define the structure, eligibility criteria, and funding schedule. Both models require clear documentation and tracking of individual employee balances. HR departments usually manage enrolment and coordinate with providers. Employees can typically track their contributions and growth on online portals.
Other Considerations
Although the structure differs, both options result in similar outcomes. Seguros de Ahorro may appeal more to risk-averse companies looking for capital protection and bundled insurance, while Planes de Ahorro are suited to flexible or performance-based savings models.
Health
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Dental Insurance
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Key Features – How Does It Work?
Spain’s public healthcare system does not include routine dental care for adults, except in cases of medical emergencies or serious illness. As a result, most dental services must be paid for out of pocket, and many employers offer dental insurance as part of their benefits package to cover costs. It is most commonly bundled with private health insurance, either included in the policy or offered as an optional add-on. Coverage typically includes preventive care such as cleanings, check-ups, and X-rays, with discounts on treatments like fillings, extractions, orthodontics, and implants.
Cost and Funding
Group dental insurance is usually more affordable than individual plans, especially when purchased as an add-on to company health insurance. Employers may cover the full premium or offer it through a flexible compensation scheme. Plans often allow employees to extend coverage to their family members at an additional cost.
Employee-paid premiums may be included in a flexible compensation regime if the employer offers this option.
Taxation
If the employer funds the premium, this is considered a business expense and tax-deductible for the company. When bundled with private health insurance, dental coverage can be included in the €500 annual tax exemption.
Implementation and Administration
Employers can add dental coverage when arranging their group health insurance or contract it separately from an insurer or broker. HR is responsible for communicating the benefit and managing enrolment. Many insurers offer employee portals where coverage details and provider directories can be accessed online. Claims are managed directly between the employee and the insurer.
Other Considerations
Employers should communicate clearly what is covered under any dental policy, as many plans focus on preventive care and offer only partial reimbursement for more complex procedures. This means employees may still need to pay dental costs out of pocket.
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Fitness Memberships
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Key Features – How Does It Work?
In Spain, employer-sponsored fitness memberships are increasingly offered as part of employee wellness programmes. These benefits are typically offered through a flexible compensation scheme. Employers partner with a fitness platform, and employees opt in to access gyms and wellness services. This agreement be with a specific fitness chain or through platforms that offer multi-centre access.
Cost and Funding
Employers typically offer fitness benefits through flexible compensation schemes, in which the cost is deducted from the employee’s gross salary and paid to the partnered fitness platform. This setup allows companies to negotiate discounted rates and gives employees access to multiple facilities, often at a lower cost than individual memberships. Some employers may choose to subsidise part of the cost as part of a broader wellbeing strategy.
Taxation
If a fitness membership is paid for by the employee through a flexible compensation scheme, this amount will be subject to income tax. Employer contributions to fitness memberships are generally considered a benefit in kind and subject to personal income tax.
Implementation and Administration
Employers can set up fitness benefits by partnering with a fitness provider and integrating the offering into their flexible compensation scheme. HR departments manage gross salary deductions, while third-party platforms handle member registration, onboarding, and ongoing access to facilities. This typically includes an online portal or app to book classes and access online resources.
Other Considerations
To maximise participation, employers should offer a variety of fitness options that accommodate different schedules, locations, and preferences. Employers may also consider integrating broader wellbeing initiatives, such as mental health support or nutrition guidance, alongside fitness benefits for a more holistic approach to employee health.
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Health Screening
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Key Features – How Does It Work?
In Spain, all employers are legally required to offer occupational health check-ups (reconocimientos médicos). These mandatory screenings are limited in scope and focus on identifying work-related health risks. In addition to this, companies are voluntarily offering broader health screenings as part of employee wellness programmes. These are often arranged through private medical providers or included as part of private health insurance policies.
Cost and Funding
These screenings are often fully funded by the employer, either as part of private health insurance or through a separate medical screening programme. Some companies may offer enhanced screenings or additional diagnostics through a flexible compensation scheme, allowing employees to pay for upgraded tests or extend coverage to dependants. Employers may benefit from group pricing to keep costs manageable.
Taxation
Health screenings that go beyond the mandated occupational check-up are generally considered a benefit in kind and should be included in the employee’s taxable income.
Implementation and Administration
For health insurance policies that cover health screenings, employees can organise their own assessment directly with a medical provider. If the employer chooses a tailored corporate package, HR teams are typically involved in organising on-site or off-site appointments. Any information from these assessments is shared directly with the employee.
Other Considerations
These programmes are optional and require informed consent. Employers should ensure employees understand that their health data is confidential and emphasise that any results will not impact their employment status.
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Mental Health Support
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Key Features – How Does It Work?
Mental health support as an employee benefit is becoming more important in Spain as awareness grows and new regulations come into force. Employers usually work with specialised providers, and services are often delivered through digital platforms. This approach typically includes one-to-one therapy sessions alongside company-wide workshops and self-help resources. Employees get confidential and direct access to these platforms, so they can explore resources, book appointments, and get support without the employer seeing their personal use.
Cost and Funding
Most employers pay for mental health support through a subscription model that gives all employees access to a variety of resources and workshops. Some companies cover a certain number of therapy sessions each year, with employees funding the additional cost if they want more sessions. Some companies also include mental health services in flexible compensation schemes, letting employees pay for extra sessions directly from their salary.
Taxation
When mental health support is provided as a service for the whole company, it is treated as a business expense and is not taxed as a benefit for individual employees. However, if the benefit is linked to individual use, such as reimbursed therapy sessions or personal allowances, it might be considered a taxable benefit.
Implementation and Administration
Employers should partner with a third-party provider and select a level of support that fits the needs of the workforce and the company’s budget. Employees should have direct and confidential access to the platform so they can manage their mental health support independently, including browsing resources and scheduling appointments.
Other Considerations
This kind of benefit is more targeted and comprehensive than traditional employee assistance programmes (EAPs). It helps with both preventing mental health issues and responding to them when they arise. Recent changes in Spanish law mean employers must include mental health in their duty of care, and workplace mental health is now a key focus for government inspections. Because of this, many companies are adding mental health support to their overall health and safety plans to stay compliant and create a healthier workplace.
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Nutrition Support
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Key Features – How Does It Work?
Employer-provided nutrition support in Spain is gaining popularity as part of broader corporate wellness strategies. These programmes aim to improve employees’ dietary habits and overall wellbeing through services like individual consultations with nutritionists, educational workshops, and digital self-help tools. Services can be delivered on-site, virtually, or through online platforms. Companies partner with providers to design and implement these programmes.
Cost and Funding
Nutrition programmes offered to all employees, such as workshops or resources, are usually funded by the employer. Digital platforms with more personalised support typically offer tiered packages, and companies can benefit from negotiated group rates. In some cases, employers offer employees the option to co-fund additional services through a flexible compensation scheme, especially for extended one-on-one support.
Taxation
When nutrition support is provided broadly and made available to all employees, it is typically treated as a business expense and may not be taxed as a benefit in kind. However, if the support is tailored to individual use, such as personal consultations or reimbursements, it is likely to be considered a benefit in kind and included in the employee’s income for tax purposes.
Implementation and Administration
Employers should work with a nutrition support provider. HR teams are responsible for managing the programme, ensuring internal communications, coordinating with the provider, and tracking employee engagement. Most providers offer digital platforms or apps where employees can book sessions, complete dietary assessments, or access wellness content.
Other Considerations
Employers should ensure offerings are inclusive and cover a wide range of dietary needs and preferences.
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Optical Care
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Key Features – How Does It Work?
In Spain, optical insurance is generally not offered as a standalone product. Instead, it is available as an optional add-on to private health insurance policies. The public healthcare system does not cover routine optical expenses such as glasses or contact lenses, with private insurances designed to complement this with most plans focusing on preventive and corrective care, like check-ups, vision tests, and discounts or reimbursements for prescription lenses and contacts.
Cost and Funding
Optical insurance is usually paid for by the employee, either as part of their private health insurance or via a flexible compensation scheme. Employers may negotiate group policies that include optical benefits as optional extras. Reimbursement is often capped, with coverage of up to 50% of eligible expenses.
Taxation
If the employer funds the premium, this is considered a business expense and tax-deductible for the company. When bundled with private health insurance, optical insurance can be included in the €500 annual tax exemption.
Implementation and Administration
Employers can include optical care when setting up group health insurance policies. HR is responsible for communicating the benefit and managing enrolment. Many insurers offer employee portals where coverage details and provider directories can be accessed online. Claims are managed directly between the employee and the insurer.
Other Considerations
Coverage usually applies to prescription lenses and contact lenses, while frames are often excluded or only partially reimbursed. As benefits vary across providers, employers should make it clear what is included in the policy and whether the optical cover is automatically bundled or optional.
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Seasonal Vaccinations
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Key Features – How Does It Work?
In Spain, many employers offer seasonal flu vaccinations as part of their occupational health and safety programmes. These vaccinations are administered through partnerships with occupational health providers. For larger teams, vaccinations can be provided on-site at the workplace, making it convenient for employees to be vaccinated without disrupting their work schedule.
Cost and Funding
Employers typically cover the full cost of providing flu vaccinations to their employees. Employers may negotiate bulk rates with providers to reduce the per-employee cost. Some private health insurance policies also reimburse the cost of vaccinations.
Taxation
When seasonal flu vaccinations are provided by the employer as part of an occupational health initiative, they are generally not considered a taxable benefit in kind for employees. However, if the employer reimburses employees for vaccinations obtained independently, this reimbursement may be treated differently for tax purposes.
Implementation and Administration
To implement a vaccination programme, employers should partner with an occupational health service provider or local medical centre. Employers should run a clear information campaign and set up a simple sign-up process.
Other Considerations
All vaccinations should be completely voluntary. Employers should provide clear, detailed information about the vaccine, including potential side effects. Employers should schedule workplace vaccination campaigns to coincide with national public health vaccination periods for maximum effectiveness.
Lifestyle
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Car Leasing
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Key Features – How Does It Work?
In Spain, employer-provided car leasing is typically offered through flexible compensation schemes. Employees can choose to allocate a portion of their gross salary to lease a vehicle through a leasing provider. These arrangements allow employees to use the car for both commuting and personal purposes, with the taxable benefit calculated according to personal use.
Cost and Funding
The cost of leasing is generally borne by the employee through deductions from their gross salary. Employers may negotiate group leasing rates, potentially reducing costs. Leasing packages usually cover maintenance, insurance, and other services, making them a convenient and cost-effective option for employees.
Taxation
Leasing a car for personal use is considered a benefit in kind and is subject to income tax. The annual taxable amount is calculated as 20% of the vehicle’s market value. This is adjusted for the proportion of personal versus professional use. For energy-efficient vehicles, such as electric cars, employees can benefit from a 30% reduction in the taxable amount.
Implementation and Administration
Employers interested in offering a car leasing benefit should establish an agreement with a car leasing provider. Employees can then opt in to the benefit through the flexible compensation scheme, selecting a vehicle directly from the leasing provider. HR teams are typically responsible for managing the programme, including salary deductions and compliance with tax reporting requirements.
Other Considerations
Employers should make it clear that leasing agreements are set up with external providers and usually come with fixed terms. It is also important that employees understand how tax rules apply, including any savings from choosing an electric or low-emission vehicle.
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Commuter Scheme
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Key Features – How Does It Work?
Spain offers a tax-exempt commuter benefit through flexible compensation plans (cheque transporte). This allows employees to allocate part of their gross salary to public transport costs. Eligible services include metro, local and regional buses, trams, and commuter trains. The benefit must be non-transferable, typically offered via a prepaid card or pass, and used for commuting between home and work.
Cost and Funding
The scheme is usually employee-funded through salary sacrifice. The employee can choose an amount to be deducted from their gross salary which is then used to cover the cost of transport. Employers cover the service fee charged by third-party providers to manage the transport benefit, which may be a flat monthly rate or a per-employee cost.
Taxation
The commuter benefit is exempt from personal income tax up to €1,500 per year, with a monthly ceiling of €136.36. To maintain tax-exempt status, the benefit must be used solely for public transportation and cannot be exchanged for cash or used for private travel. It must also be provided through a non-transferable instrument that identifies the beneficiary. If employers allow the employee to opt for more than €1,500, any amount exceeding the limit is taxed as regular income.
Implementation and Administration
Employers typically partner with a third-party provider to manage the scheme. Otherwise, they can work directly with regional authorities. Employees must opt in through the flexible compensation scheme. HR or payroll teams are then responsible for ensuring correct payroll processing and record keeping for tax compliance. The public transport provider or third-party administrator supplies the transport passes or cards directly to the employee.
Other Considerations
The benefit only applies to standard public transport services. Taxi, ride shares, or private vehicle expenses are not eligible. In some regions, public transport cards must be registered in the employee’s name.
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Cycle Scheme
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Key Features – How Does It Work?
While Spain does not have a government-backed cycle scheme, some employers are starting to introduce cycling benefits as part of mobility and sustainability policies. This may include financial incentives for commuting by bicycle or partnerships with third-party bike providers. Given this growing interest, some advocacy groups and employers are advocating for government-backed incentives similar to those offered in other Western European countries.
Cost and Funding
Where cycling schemes exist, they are typically employee-funded as a monthly subscription through flexible compensation schemes. Some employers may subsidise a portion of the cost as part of broader wellness or environmental strategy.
Taxation
There is currently no tax relief in Spain for the purchase or use of bicycles. If an employer offers this as a social benefit, whether as a direct subsidy or through a bike subscription service, it is considered a benefit in kind and subject to income tax. If it is included as part of a flexible compensation scheme, it will also be subject to tax.
Implementation and Administration
Employers can partner with local providers to offer subscription-based services. If offering a subsidy, employers can determine the amount they offer and the process for disbursement. There should be a clear process for employees opting into any cycle benefit.
Other Considerations
Because cycling lacks the tax advantages that make programmes attractive in other countries, this benefit is not common in the Spanish market. Clear messaging around the purpose and advantages of a cycle scheme can help increase employee participation.
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Employee Assistance Programme
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Key Features – How Does It Work?
An Employee Assistance Programme (Programa de Asistencia al Empleado or PAE) is a confidential service provided by employers to support employees and their families in managing personal and work-related challenges. These programmes typically offer 24/7 access to professional counselling, legal and financial advice, and wellbeing resources. This allows employees to address issues such as stress, anxiety, and workplace conflicts, as well as personal challenges. Services are delivered through various channels, including phone, video, live chat, and mobile apps.
Cost and Funding
EAPs in Spain are generally employer-funded and offered at no cost to employees. Pricing models vary based on the provider and the range of services included. Basic plans can start at €2 per employee per month, with additional services available as add-ons. The cost depends on the scope of services and company size.
Taxation
Employer-funded EAPs are considered a business expense and are not treated as a taxable benefit in kind for employees.
Implementation and Administration
To implement an EAP, employers partner with providers who offer tailored programmes suited to the company’s size and needs. These providers handle service delivery, including counselling sessions, legal and financial consultations, and access to digital wellbeing resources. Employers are responsible for promoting the programme internally, with employees then engaging directly with the service.
Other Considerations
Recent updates to Spanish occupational health and safety regulations require employers to assess and address psychosocial risks, including mental health, as part of their duty of care. EAPs are widely recognised as a tool to help employers meet these obligations and to promote a healthier work environment.
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Language Training
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Key Features – How Does It Work?
Language training is a commonly offered benefit in Spain, especially among multinational companies and those with international operations. Employers typically provide access to language courses to improve employees’ communication skills, increase competitiveness, and support career development. Training may be delivered via in-person classes or online platforms.
Cost and Funding
Language training is sometimes funded by employers as part of their learning and development initiatives, particularly in multinational firms or roles requiring foreign language skills. In these cases, companies may offer group classes or partial subsidies. More commonly, language courses are offered through flexible compensation schemes, allowing employees to use pre-tax salary to pay for private lessons. Some employers may also reimburse course fees upon completion, depending on company policy.
Taxation
When language training is provided by the employer and relates to the employee’s role or development within the company, it is not considered a taxable benefit in kind. However, if the training is personal or not related to work, and the cost is paid or reimbursed by the employer, it may be treated as taxable income.
Implementation and Administration
Employers typically partner with language schools or digital learning platforms to offer structured courses. App-based models allow employees to access resources at their own pace. For more structured classes, HR teams can manage the enrolment process and coordinate scheduling.
Other Considerations
Employers should clearly communicate eligibility, course options, and expectations around attendance and performance. Offering flexible scheduling, a range of levels, and tailored content can help increase uptake and impact. Companies may also consider linking language training to career development pathways or mobility opportunities.
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Long Service Award
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Key Features – How Does It Work?
In Spain, long service awards, known locally as permanent bonuses (premios de permanencia), are included in collective bargaining agreements across various sectors. These awards recognise employee loyalty and tenure, typically commemorating milestones such as 15, 20, 25, or more years of service. Most awards take the form of a cash bonus, though they may also be offered as commemorative gifts or additional annual leave days. Awards are typically structured as a one-time recognition.
Cost and Funding
Long service awards are fully funded by employers and are outlined in the respective collective agreements. The cost to the employer depends on the specific terms, which may include fixed monetary amounts, percentages of salary, or non-monetary rewards.
Taxation
Monetary awards for long service are generally considered part of the employee’s taxable income and are subject to income tax and social security contributions. However, if the award meets certain criteria it may qualify for a 30% tax reduction.
Implementation and Administration
The administration of long service awards is managed internally. HR teams should track employee tenure and ensure timely recognition according to the terms specified in the collective agreement. Any cash bonus can be actioned via payroll.
Other Considerations
Employers should communicate the award process clearly to employees, including how any periods of leave affect the calculation of service. With average tenure decreasing across industries, employers should consider offering recognition awards at earlier stages.
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Recognition Programme
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Key Features – How Does It Work?
Recognition programmes in Spain aim to reward employees for performance through awards, bonuses, or gifts. These programs can include tax-efficient non-cash benefits under the in-kind remuneration regime, such as gift cards or digital vouchers, as well as performance-based cash bonuses. They are typically implemented through third-party platforms specialising in employee recognition.
Cost and Funding
Recognition platforms generally operate on a monthly subscription model with a per-employee fee, covered by the employer. Employers then have the flexibility to set a recognition budget tailored to their company and corporate culture. Individual gifts and rewards can be modest or scaled up to more substantial offerings depending on the level of achievement.
Taxation
In Spain, gifts and non-cash benefits provided by employers to employees are generally classified as benefits in kind and are subject to income tax and social contributions.
Implementation and Administration
Employers should partner with a third-party provider that supplies and manages the digital platform. The provider typically takes care of the day-to-day administration, including onboarding employees and maintaining the platform. Employers remain responsible for communicating the programme internally, ensuring staff understand how it operates, and actively encouraging participation and engagement with the platform.
Other Considerations
When implementing an online recognition programme, employers should ensure that the platform’s features appeal to a diverse workforce, supporting various types of recognition such as peer-to-peer praise, manager feedback, and milestone celebrations. Customising the platform to reflect the company’s culture can help increase engagement.
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Retail Discounts
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Key Features – How Does It Work?
Retail discounts are a benefit that gives employees access to special offers, reduced prices, or cashback on purchases from a wide range of retailers. These typically operate via an online platform, where purchases are made through a digital portal. Some providers also include price comparison tools, special promotions, and personalised offers tailored to employees’ preferences.
Cost and Funding
Many providers offer free or low-cost platform options. Employers may pay a small fee to cover the setup and maintenance of the portal, while employees can use the discounts at no charge. For larger organisations, pricing may be scaled according to the number of users.
Taxation
Discount portals are generally treated as non-taxable benefits, as they provide access to discounts rather than a direct financial benefit from the employer. If the discount is comparable to what is available to the public, it is not considered additional income.
Implementation and Administration
Employers should select a provider that suits their budget and offers deals appropriate for their workforce. Once set up, employees can access the platform directly, with most providers supporting integrated sign-on for easier access. Employees can then browse and use discounts directly through the provider’s system.
Other Considerations
Employers should ensure any platform offers a wide range of options that appeal to different life stages, interests, and locations. Adding local or industry-specific discounts can make this offering more personalised. Platforms that provide regular updates and new promotions can help keep employees engaged.
Leave & Remote Working
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Additional Leave
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Additional leave includes any paid or unpaid leave that is offered by employers for non-statutory purposes. Examples include company days, mental health days, volunteer leave, and birthday leave. Employers establish their own policies for how to request and log these days.
The most common form of additional leave in Spain is a personal day (días de asuntos propios). These days are included within many collective agreements or company policies. The number of personal days varies considerably by sector and employer, with a range between 1 day and 5 days annually.
Annual Leave
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Annual leave is paid time off work that all employees are entitled to, designed for personal activities.
In Spain, employees are entitled to a minimum of 30 calendar days of paid annual leave per year. This translates to approximately 22 working days. Some collective agreements may offer a more generous allowance than the statutory requirement.
Spain also observes 8 national holidays in addition to the annual leave entitlement. Additionally, each autonomous community can designate up to 4 additional regional holidays, and local municipalities can add 2 more local festivities, bringing the total to 14 public holidays per year.
Carer's Leave
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Carer’s leave is paid or unpaid time off to provide personal care or support to a dependant.
In Spain, employees are entitled to 5 days of paid leave to care for family members who require support due to illness, accident, or hospitalisation. This includes an employee’s spouse, civil partner, immediate family members, or any other person in the employee’s household. It is paid for by the employer.
Compassionate & Bereavement Leave
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Compassionate and bereavement leave is time off work for personal loss or other family emergencies.
In Spain, all employees are entitled to 2 days paid leave in the event of the death of a spouse, partner, or other immediate relative. If the employee needs to travel to another location for the funeral or related arrangements, this increases to a total of 4 days. This operates on a per-event basis, with no annual cap if there are multiple bereavements.
Flexible Working
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Flexible working means finding a way of working that suits an employee’s needs. This may include having flexible start and finish times, or working from home. Some examples of flexible working include job sharing, remote working, hybrid working, part time hours, compressed hours, flexitime, or staggered hours.
In Spain, all employees have the right to request adjustments to their working time arrangements for the purpose of work-life balance, including the length and distribution of their working day, the organisation of working time, and the method of work, including remote work. Such adjustments must be reasonable and proportionate to the needs of the employee and the employer. While all employees enjoy the right to request, there are additional protections for parents of children under 12 and employees with caregiving responsibilities.
Force Majeure Leave
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Force majeure leave is time off from work due to urgent and unexpected family matters that require an employee’s immediate attendance. This differs from other types of leave which tend to be pre-planned and pre-approved.
In Spain, this leave allows employees to take up to 4 days per year, either in hours or full days. It is paid for by the employer. This was introduced in 2023 in response to the EU directive on work-life balance for parents and carers.
Maternity Leave
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Maternity leave is paid time off for mothers before and after childbirth.
In Spain, mothers receive 16 weeks of fully paid leave following childbirth, with payment equivalent to their salary. This is funded by the Spanish Social Security system, rather than the employer. The first 6 weeks are mandatory, while the remaining 10 weeks can be taken in weekly periods within the first 12 months of birth. Up to 4 weeks can be used before the birth. Alternatively, pregnant women are entitled to access statutory sick leave from the 39th week of pregnancy until the birth. While this is paid at a lower rate, it means the 16 week entitlement is retained for after birth.
Parental Leave
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Parental leave is a statutory leave entitlement that is available to all new parents in addition to traditional maternity and paternity leave policies.
In Spain, parental leave is a distinct benefit. It offers parents 8 weeks of leave that can be used flexibly until the child reaches the age of 8. Each parent has their individual 8 week entitlement that cannot be transferred to the other parent. Each child generates a distinct benefit, meaning that if parents have multiple children, they can accumulate additional leave weeks. This leave is currently offered unpaid.
Paternity Leave
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Paternity leave is paid time off for fathers after childbirth.
The entitlement for fathers, or other second parents, is the same 16 weeks of fully paid leave that the birthing parent is entitled to. They must take the first 6 weeks immediately following the birth, with the remaining 10 weeks offered flexibly. This is funded by the Spanish Social Security system, rather than the employer.
Remote Working
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Remote working policies provide employees with the flexibility to work from locations outside of the office, typically from their own homes. While these arrangements can fall within the definition of flexible working requests, many employers have begun to offer remote working as a standard practice.
In Spain, remote work should be agreed in writing between the employer and employee, specifying details such as working hours, location, and how expenses like internet or electricity will be covered. Employers are required to provide the necessary equipment and cover any additional costs that come with working from home. There are regulations that require remote workers to have the same rights to training, promotion, and work-life balance as their in-office colleagues. These regulations have helped make remote working a mainstream and secure option for many Spanish employees.
Sick Leave
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Sick leave is time off for employees to recover from illness.
The Spanish system distinguishes between different types of sick leave based on the cause (common illness, workplace accident, occupational disease, or non-work-related accident), with each category having specific payment structures and requirements. For a common illness, employees receive no compensation for the first three days. From the 4th to the 15th day, employees are entitled to 60% of their regular salary, paid by their employer. From the 16th to the 20th day, employees are entitled to 60% of their regular salary, paid by social security. After this, they are entitled to 75% of their regular salary, also from social security. Many collective agreements provide enhanced sick leave, with some employers offering cover from the first day of leave, and complementary payments to ensure workers receive up to 100% of their regular salary during sick leave periods.
Special Leave
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Special leave is statutory leave for special occasions. This varies between countries based on social and cultural norms.
In Spain, employees are entitled to 15 calendar days of paid leave in the event of their marriage or registration of a civil partnership. There is also an entitlement to 1 day for moving house, though many collective agreements offer above this amount.
Spending Allowances
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Learning & Development Allowance
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A learning and development allowance is a budget for employees to pursue professional growth through training courses, workshops, certifications, or similar educational opportunities. In Spain, these allowances are most often structured as part of a flexible compensation plan, allowing employees to allocate a portion of their salary to job-related training. When the training is directly relevant to the employee’s role, these expenses are typically exempt from income tax.
Direct employer funding of external training is less common in Spain and, unless the training is clearly job-related and properly documented, such payments are usually treated as taxable income for the employee.
Meal Allowance
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A meal allowance is a payment or subsidy for meals that are eaten at work. This may take the form of a voucher, prepaid card, or reimbursement.
Meal vouchers (cheques restaurante) are a popular employee benefit in Spain, available either as a direct employer-paid perk or through a flexible compensation scheme. Vouchers are provided in a digital format or prepaid card and can be used at restaurants, cafés, and food outlets. They must be individually numbered and non-transferable.
Work from Home Allowance
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In Spain, employers are required to provide and maintain all necessary equipment for remote work. This includes covering the cost of essential equipment such as laptops, monitors, keyboards, and internet connectivity. Most companies meet this obligation by either supplying equipment directly or offering an allowance to cover expenses. The specific arrangements, including the inventory of equipment and the method of payment, should be detailed in a written remote work agreement between the employer and employee.













































This document has been prepared to give guidance on the employee benefits market. The information contained in this report is updated regularly based upon changes in legislation and market trends, however we cannot guarantee that it is always fully up to date and therefore if using this report to inform decision making we would always recommend that you seek independent advice, be that tax, labour law, or general consultancy support.

Employee benefits in Spain
Explore our comprehensive guide to employee benefits in Spain, from health insurance and commuter perks to workplace savings and wellbeing support.
Quick Overview
Notable:
- Private medical coverage is popular in Spain and demand is steadily increasing due to the tax advantages of offering the benefit and long wait times with the state system.
- Due to a lack of confidence in the future of the retirement scheme, stronger financial wellness programs are trending. This includes enhanced Defined Contribution plans for all employees.
Statutory benefits:
- Social security covers public healthcare, death benefits and retirement.
- Total social security contributions are as follows:
- Employer: 29.9%
- Employee: 6.35%
Employers typically provide:
- Meal vouchers (tax advantaged)
- Childcare facilities (tax advantaged)
- Private medical insurance (tax advantaged)
Other common benefits include:
- Purchase of holidays
- Commuting vouchers
Benefits Summary
Benefits coverage standards can differ greatly across countries. The table below shows what statutory, market standard and great coverage look like for each benefit.
- Statutory health care is mandatory and all Spanish citizens and residents are covered. Payments contributions are included in social security (see retirement).
- 75% of Spanish companies offer supplemental coverage, which includes dental care.
- Employers typically pay 100% of the premium and 50% of dependents’ premiums
- These options are tax advantaged
- Enhanced Private Medical Insurance which covers pre-existing conditions
- 100% of the dependents’ premium covered by employer
- 5% of employers cover vision
- On-site or subsidised gym access
- Strong mental health services and counselling, healthy food options, retail discounts, fertility & reproductive health support.
- €50 - €250 / month wellbeing budget
- 100% of employees are covered by social security.
- 75% of companies offer supplemental life insurance, for which they contribute 100% and payout is 1x - 2x salary.
- 70% of companies offer supplemental coverage for accidental death and disability, for which they contribute 100%.
- 3x salary payout
- 100% of employees are covered by social security.
- Employer contribution: 23.6%
- Employee contribution: 4.7%
- 50% of companies offer supplemental pension schemes. Among these companies, 15% offer Defined Benefit plans, and 84% offer Defined Contribution plans.
- Employer contribution: 4% - 6% of salary
- Employee contribution: matched or slightly less than employer contribution.
- An excellent plan contributes 6% of employee salary and the employee has the option to top-up their contribution as high as 10%.
- Disability - 100% of employees are covered by social security.
- For industrial accidents, employers must contribute an additional 1%
- Most companies offer supplemental disability benefits, for which they cover 100%
- Benefit is a lump sum equal to death benefit payout (1x - 2x salary)
- Some plans double the payout when accidental death is due to a traffic accident
- Excellent coverage allows employee to flex up contribution for a larger lump sum payout of 4x - 10x
- A variety of state-sponsored childcare subsidies and allowances exist to support families
- Nursery (Guarderia) Scheme
- Nursery (Guarderia) Scheme
- No statutory requirement
- Partial reimbursement of tuition fees or an annual learning and development budget of €300 - €1,000 / year
- Reimbursement of tuition fees, or an annual learning and development budget of €1,000 - €3000+ / year
- No statutory requirement
- Many employers offer office snacks, company events and socials, happy hours, volunteer and community engagement initiatives.
- Tax advantaged meal vouchers are also common
- Discounts with local cafes and restaurants
- Daily breakfast in office
- In office snacks, beverages, and salads
- Weekly socials/happy hours
- Free lunch a few days a week
- €50 - €100 / month social budgets every quarter
- No statutory requirement
- Guarderia (Childcare vouchers)
- Ticket Restaurante (Meal vouchers)
- Transport passes
- NA
- No statutory requirement
- 40% of companies that offer flexible benefits offer benefit sacrifice, allowing the exchange of core benefits for further wages
- 75+% of companies offer travel insurance
- Employee Retail Discounts
- Purchase of holidays
- Commuting vouchers
- 10% of employers provide a housing subsidy
- 20% of employers provide 0% interest loans
- £100 - £200 / month Flex Benefits Allowance
- Late Night Taxis
- Earned Wage Access
- Financial Advice
- Employee Stock Options Scheme
Policies Summary
Policy coverage standards can differ greatly across countries. The table below shows what statutory, market standard and great policy coverage look like for each benefit.
- 22 days + 14 national holidays
- 28 days + 14 national holidays
- Unlimited holiday
- See sick pay policy section below
- Supplemental is not common
- Supplemental is not common
- Maternity & Paternity are jointly regulated under “birth and minor care benefit”
- 16 weeks paid by state at 100% of salary (2 weeks additional for multiple births)
- Distribution of time off is at the mother’s discretion, but at least 6 weeks is compulsory after the birth.
- It is not common for employers to supplement birth and minor care leave.
- Some employers offer a one-time payment of up to €500 to support new parents.
- Up to 3 years unpaid
- Statutory is standard
- Statutory is standard
- No statutory requirement
- 65+% of employers offer flexible working arrangements
- 1 day/week
- Fully Hybrid/Remote and the option of a “Work from Anywhere” scheme in line with tax-residency requirements
Benefits
1. Healthcare / Private Medical Insurance
While statutory coverage in Spain is sufficient, it is common for employers to supplement this with comprehensive coverage which offer further support for individuals with chronic conditions, or in maternity, outpatient care and with private hospitals. Access to private care also allows individuals to access care with shorter wait times. It is especially common for multinational companies and industries such as tech, consultancy, banking and pharmaceuticals.
There are two types of plans in Spain: direct-choice and free-choice. Direct-choice (also called an in-network plan) is the typical plan for all staff. Insurance covers all costs of care from providers in the network and there is no annual limit. Managers often receive a combination of direct-choice and free-choice, which imposes a limit and reimburses expenses at 80% for out of network providers.
Companies can benefit from a tax advantage of 500 euros per year for the worker on each insurance policy taken out when they pay for workers’ health insurance premiums.
Dental coverage is commonly included in medical plans, offering discounted dental coverage and a deductible scheme.
Limited vision coverage is also often included.
Some popular providers include:
- Adeslas
- Sanitas
- Asisa
- Mapfre
- Cigna
Click here to view our catalogue on wellness providers in Spain.
2. Retirement
The statutory retirement contribution is 23.6% employer contribution, and 4.7% employee contribution. About 50% of companies offer supplemental pension schemes. Among these companies, 15+% offer Direct Benefit (DB) plans, for which the employer pays 100% contribution, and 85+% offer Direct Contribution (DC) plans, for which the employer contributes between 4% - 6% of salary, and employee contribution is close or slightly less than employer contribution.
An excellent plan contributes 6% of employee salary and the employee has the option to top-up their contribution as high as 10%.
Click here to view our catalogue on insurances in Spain.
3. Income Protection & Disability
All employees receive disability protection via social security. For industrial accidents, employers must contribute an additional 1%. Most companies offer supplemental disability benefits under collective bargaining agreements , for which they cover 100% and payout is 100% for 12-18 months. Total long term disability is 55% of pension, or 75% if over age 55. Most companies offer life insurance and this covers long term disability
Leading providers include:
- Mapfre
- AXA Seguros
- Allianz
- Generali Seguros
- Sagicor
Click here to view our catalogue on insurances in Spain.
4. Life Insurance
75% of companies offer supplemental life insurance, for which they contribute 100%. The typical payout is 1x - 2x salary, but some companies offer 3x, especially for executives and managers. The payout is typically doubled in the case of accidental death (accidental death rider).
70% of companies offer supplemental coverage for accidental death and disability, for which they contribute 100%.
Some popular providers include:
- Mapfre
- AXA Seguros
- Allianz
- Generali Seguros
- Sagicor
Click here to view our catalogue on insurances in Spain.
Policies
1. Annual Leave
After 1 year of service, 22 days vacation leave is statutory. There are also 14 national holidays. You can also get paid leave for the following reasons:
- Illness or death of a relative (2 days or 4 if travelling)
- Own wedding (15 days)
- Change of residence (1 day per move)
2. Sick pay
Sick leave is jointly covered by the National Insurance Scheme and employers.
- Days 1-3, there is no statutory payment, unless otherwise agreed upon by collective agreement or contract
- Days 4-15, employer pays 60% of earnings
- Days 16-20, employer pays 60% of earnings, but is reimbursed by the state
- Days 21+, employer pays 75% of earnings, but is reimbursed by the state
If sick leave is due to occupational accident or disease, pay is 75% from day one.
Benefits are payable up to 12 months, with the possibility of extension to 24 months.
3. Maternity & Paternity
Maternity & Paternity are jointly regulated under “birth and minor care benefit,” which includes coverage for adoption. Carers are allowed 16 weeks of leave paid by state at 100% of salary, with 2 weeks additional for multiple births. Distribution of time off is at the mother’s discretion, but at least 6 weeks is compulsory after the birth.