Labor market

We guide you in your search for talent and the particularities of our labor legislation

The recruitment process of qualified personnel is one of the most important stages when setting up your company. Invest In Madrid will guide you in the identification of key centres where you can find the personnel you need to develop your activity.

Invest In Madrid also advises you on Spanish labour regulations and access to aid for job creation.

Spanish Labour Market

Types of contracts

Open-ended contracts are widely used in Spain. In these kind of contracts, the severance payment is 33 days net base salary per year worked.

Contracts must be signed within the framework of the collective bargainingagreement applicable to the sector, and will always prevail in the case of individual working conditions that are more detrimental to the worker.

Consult here the applicable labour Agreements in Madrid Region


The minimum  wage is fixed every year by the government. For people over 18 years old it is a 1,000 euros net salary per month or 14,000 euros per year. It includes 12 monthly payments and two extra payments).

Labour costs in Spain are very competitive in relation to neighbouring countries. Many of the salaries are established in collective bargaining agreements.

Social Security

Employees must be registered with the National Social Security System. The company must register the employee before they start working. Non-EU employees must have a working permission in Spain.

Social Security contributions are paid partly by the employer and partly by the employee.

Staff are classified into a number of occupational and professional categories to determine their social security contributions.

Employment rights

All employees in Spain have certain rights, set out in the Workers’ Statute. The most important of these are:

  • Right to paid holidays
  • Paid leave: for marriage (15 days), for moving house (1 day) or for death or surgery of close relatives (2 days).
  • Flexible working: Workers can request reductions in working hours to take care of children up to 12 years of age or family members who are unable to look after themselves.
  • Maternity/paternity leave: workers, both men and women, can request 16 weeks of leave after the birth of a child. The first six weeks are compulsory.

Need to find the best talent?

We put you in touch with our partners to access the most qualified professionals.


Invest in Madrid Services: Open your company

We provide you with all the information you need to choose Madrid as the best destination for your company.

We guide you in your search for talent and the particularities of our labor legislation

We help you expand your business

Professional, confidential services at no cost to the investor

Free expert advice on how to start a business in Madrid