Employee Cost Calculator in Spain

Find out here the true cost of hiring an employee in Spain! Get an accurate and detailed calculation of labor costs to make informed decisions.

*In 2023, the Minimum Interprofessional Wage (SMI) in Spain is €1080 per month.

*If they are included in the base salary, you can leave this box at 0.

*If they are included in the base salary, you can leave this box at 0.

*It can range from 19% to 47%. Check the IRPF withholding table

*It will range from 30% to 37% depending on the case.

Monthly cost for the employer

Disclaimer: Please note that there are various labor regulations (such as collective labor agreements) that affect the cost of hiring a worker and influence the final result. Please try to be as accurate as possible when providing your data.

How to Calculate the Cost of Hiring an Employee?

The cost of hiring an employee in Spain goes beyond the gross salary.

It is essential to understand the various factors involved in calculating the total cost of hiring an employee in Spain, as this will enable companies to make more accurate decisions.

Here, we will explore in detail all the key elements, from Social Security contributions to the applicable percentage of income tax retention. 

employee cost calculator in spain

Employee Cost Calculator in Spain:

These are some of the factors you need to understand to accurately calculate the cost of hiring an employee in Spain in 2023.

Social Security Contributions:

In Spain, employers are required to make contributions to Social Security.

These contributions cover benefits such as healthcare, unemployment, and pensions.

The amount of the contribution varies based on the salary and type of contract of the employee.

Additionally, there are different contribution rates depending on the economic activity and professional classification of the worker.

Check the contribution bases for 2023.

Percentage of IRPF Withholding:

IRPF (Personal Income Tax) retention is a percentage applied to an employee’s earnings in Spain to cover the advance payment of their tax obligations.

The employer withholds this retention on behalf of the employee and then submits it to the Tax Agency.

The IRPF withholding varies depending on the income and personal circumstances of the worker, such as marital status and number of children.

This table shows the different income brackets and the corresponding withholding percentages for each:

Annual income range % Withholding

Up to 12,450 euros


From 12,450 to 20,199 euros


From 20,200 to 35,199 euros


From 35,200 to 59,999 euros


From 60,000 to 299,999


More than 300,000 euros


Contract Duration and Type:

The type of contract (which can be indefinite, temporary, part-time, etc.) and its duration influence labor costs.

For example, temporary contracts often have higher contributions than indefinite contracts.

There are also different types of contracts with their own peculiarities regarding rights and obligations.

Percentage of Contributions:

In addition to Social Security contributions, employers must make additional contributions to finance benefits such as:

The percentage of these contributions varies depending on the type of economic activity and the professional classification of the employee.

In addition to the aforementioned factors, there are other salary costs that must be taken into account:

In conclusion, calculating the cost of an employee in Spain requires considering a wide range of factors.

By taking into account all these elements to calculate the cost of hiring an employee, companies can make sound financial decisions, efficiently plan their resources, and comply with established legal obligations.

¡No esperes más para tomar la mejor decisión para tu negocio!

Con Entre Trámites podrás saber todas las implicaciones que trae contratar a un trabajador en España. ¡Toma decisiones acertadas en tu contratación y consulta con un profesional laboral!

¡Puedes dejar todo en manos de un especialista laboral!