Social Security Contributions – Spain

Pension (common contingencies) 4.70%, Unemployment 1.55%, Professional training 0.10%, FOGASA (wage guarantee fund) 0.13%. Deducted automatically from gross salary. Capped at maximum contribution base €5,101.20/month.

Minimum monthly base €1,381.20 (based on minimum wage €1,184 for 2026). Maximum base €5,101.20. Contributions calculated only on income within this range. Income above maximum not subject to further contributions.

Additional contribution on salaries exceeding maximum base, introduced 2025. Three tiers: 1.15% on amount 0-10% above max base, 1.25% on 10-50% above, 1.46% above 50%. Employee pays 16.61%, employer 83.39% of this contribution. Rates increase annually until 2045.

Common contingencies (pension/disability) 23.60%, Unemployment 5.50%, Professional training 0.60%, FOGASA 0.20%, Overtime 13.70%. Plus variable rate for occupational accidents: typically 1.50% for office work, higher for construction/manufacturing (2-6%).

Total employer social security costs typically 30-36% depending on accident risk classification. Substantial cost beyond salary. Total combined employee + employer contributions approximately 37-42% of gross salary.

Contribution reductions for hiring: under-30 workers, long-term unemployed, persons with disabilities, workers 52+. Can reduce employer contributions by 50-100% for 6-12 months. Designed to encourage employment of disadvantaged groups.

Since 2023, contributions based on net income. 15 brackets from €230/month (income under €670/month) to €530/month (income over €6,000/month). Major reform replacing previous flat-rate system. Gradual increases until 2031.

'Tarifa plana' for new self-employed: just €80/month first 12 months. Second year €160/month, third year €200/month if income under certain threshold. Massive benefit - standard rate would be €230-€530. Encourages entrepreneurship.

In addition to social security, self-employed pay quarterly income tax advance payments (Modelo 130). Typically 20% of net profit. Four payments per year: April, July, October, January. Reconciled in annual tax return.

Total self-employed tax burden (social security + income tax) ranges 40-50% depending on income level and region. Substantially higher than employment. Must budget for quarterly payments and annual tax bill.