Employee benefits in Spain
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Summary
Tax Considerations
Explainer Guides
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
Find out everything about employee benefits in Spain, from healthcare to retirement plans. Start exploring.
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.