Automate payroll in Spain with Al-powered calculations, local Seguridad Social handling, and compliant payslips generated in seconds.

Establish credibility and match buyer objections: compliance, local knowledge, pricing clarity, and support.
Local Compliance Without Local Overhead: Ontop automates Spain tax calculations and Convenio Colectivo requirements so you avoid setting up a local entity. The platform handles Pagas Extraordinarias payments, wage floors, and regional tax variation to keep payroll compliant and predictable. Transparent Pricing And Fees: Pricing clearly shows payroll fees, exchange rates, and contractor or EOR plan costs before payment.
Finance teams get predictable statements with no surprise charges. Human Support When It Matters: Live support helps resolve local queries and edge cases. Dedicated onboarding specialists guide tax registration and social security setup so teams move from hire to pay faster. Global Coverage With Spain Expertise: Ontop supports hiring across 150+ countries while providing Spain-specific workflows. Proration for Pagas Extraordinarias, Convenio Colectivo compliance, and Agencia Tributaria (AEAT) deadline management. Scale globally while keeping local accuracy.
Provide fast facts: minimum wage, pay frequency, bonuses, regional salary ranges. Satisfies informational intent and helps long-tail SEO.
Minimum Wage And Pay Frequency: Spain's minimum wage is €1134 EUR (14 payments) Monthly. With Pagas Extraordinarias, annual total reaches the statutory requirements. Many employers pay 2 extra payments (usually 14 months total) or prorate into Monthly payments. Ontop supports both structures.
Average Salary And Net Take Home: National average salary is ~€30000 EUR per year, about ~€2500 EUR per month gross. Ontop displays gross-to-net breakdowns so payroll and offers align with local expectations.
Regional Variation To Budget For: Salaries run higher in Madrid and Barcelona. Madrid averages €35,000 - €45,000 EUR (~20% above national). Barcelona around €35,000 - €45,000 EUR (~15%). Ontop lets you model regional differences in offers and cost projections.
Pagas Extraordinarias: Spain commonly provides 2 extra payments (usually 14 months total). Payroll logic captures proration rules so payslips match local contract terms.
Spain's wage structure includes Convenio Colectivo that set sectoral minimums. Buyers search "minimum wage by sector," "Convenio wages." Captures mid-funnel research intent.
National Statutory Minimum Wage: Spain's national minimum wage is €1134 EUR (14 payments) Monthly. Applies to all workers unless a higher sectoral minimum applies. Revised annually.
Convenio Colectivo Sectoral Minimums: Spain has multiple active Convenio Colectivo agreements covering specific sectors. These set minimums higher than the statutory minimum depending on industry and role. Sectors include key local industries.
How Sectoral Wage Floors Affect Payroll: If an employee falls under a specific Convenio, you must pay the sectoral minimum. Underpaying triggers wage claims, back pay, and penalties. Ontop stores and applies the correct rate based on employee role and sector.
How Ontop Applies Correct Wage Floors: Ontop maintains an updated Convenio database and automatically applies the correct minimum wage. During payroll preview, the system displays which agreement applies and confirms compliance. Removes manual compliance risk.
National Average Salary Benchmark: Colombia's national average salary is approximately ~€30000 EUR per year. Varies by role, experience, and sector. Larger cities run up to 20% higher; rural regions typically align with the statutory minimum.
High-Cost Cities: Madrid and Barcelona: Madrid offers salaries ~20% above national average, particularly in tech and finance. Typical range: €35,000 - €45,000 EUR annually for mid-level roles. Barcelona offers ~15% premium with strength in innovation and services. Typical range: €35,000 - €45,000 EUR.
Secondary Cities and Regional Variation: Secondary cities generally sit between 5% to 10% above the national average, depending on local industries. Rural regions typically align with or fall below the national average. When budgeting for diverse teams, account for market research to ensure equitable offers.
How Ontop's Cost Calculator Handles Regional Modeling: Input location and role to preview total employer cost. See how regional differences, wage floors, and benefits combine to show true cost of employment by city.
Buyers search "contract types Spain," "permanent vs fixed-term." Legal structure and misclassification risk are critical for compliance.
Permanent Full-Time Employment (Contrato Indefinido): Standard indefinite contract with full statutory protections. Employees get all mandatory benefits (Pagas Extraordinarias, Vacaciones, sick leave, maternity leave, Indemnización por Despido). Termination requires just cause or economic redundancy with notice and severance payout. Employer Seguridad Social contributions typically 31.4%.
Fixed-Term Contracts (Contrato Temporal): Limited-duration contracts (typically for a fixed period, renewable). Used for project work, seasonal roles, or temporary needs. Same taxes and benefits as permanent, but with defined end date. Subject to renewal restrictions and Convenio rules. Simpler termination but accrued benefits paid in full.
Part-Time Contracts: Reduced hours subject to local statutory limits. Salary and benefits are prorated by hours worked. Seguridad Social and taxes apply pro-rata. Ontop handles prorated Pagas Extraordinarias automatically.
Apprenticeships: Training contracts for students or junior profiles with reduced Seguridad Social contributions where applicable. Includes structured training and on-the-job learning. Misclassification can trigger reclassification penalties.
Self-Employed / Autónomo: Independent contractor operating own business. No employer obligations, only invoice payments. Contractor handles own Seguridad Social, taxes, invoicing. Critical: if worker appears to be employee (direction, control, exclusivity), you face reclassification and back-pay exposure.
Compliance Differences Between Contract Types: Tax rates, Seguridad Social contributions, benefits, termination rules, and Indemnización por Despido accrual vary by type. Misclassification triggers wage claims, penalties, and reclassification costs.
How Ontop Templates & Payroll Logic Handle Each Type: Ontop provides compliant templates for each type and applies correct payroll logic: permanent benefits, fixed-term accruals, part-time prorations, apprenticeship rates, and Autónomo invoicing. Avoids misclassification risk.
Explain operational flow from onboarding to monthly payments. Reduces friction and clarifies steps.
Onboarding And Registration: Ontop handles registration with Spain tax authorities (Agencia Tributaria (AEAT)) and Seguridad Social and collects required IDs. Automation plus human verification reduces setup time and avoids compliance gaps. Typical onboarding: a few business days.
Monthly Payroll Calculation: Gross-to-net includes progressive 19 - 47 tax rates, 6.35% Seguridad Social, and Pagas Extraordinarias proration. Platform applies region-specific tax bands, Convenio rules, and wage floors for accurate payslips.
Contributions And Filings: Employer contributions include Seguridad Social (6.35) and applicable local surcharges. Submitted according to statutory deadlines to Seguridad Social on your behalf. Ontop maintains records for annual reconciliation.
Payment Execution And Reconciliation: Payments in EUR € via local bank transfers to local accounts. Ontop shows conversion rates and fees before approval. Audit-ready receipts and instant USD payout options available.
EOR Vs Autónomo: Your Options: Choose Autónomo plans for flexible work or full EOR for permanent employees. Ontop supports both and highlights compliance differences so you pick the right structure.
Finance teams search "Spain payroll deadline." Captures operational queries and establishes Ontop as deadline-management partner.
Monthly Tax Withholding & Seguridad Social Payment Deadlines: Agencia Tributaria (AEAT) tax withholding due April to June via Agencia Tributaria (AEAT) online portal. Seguridad Social contributions due End of the month to Seguridad Social authority. Late payments trigger Surcharges from 10% to 20% + interest penalty plus interest.
Annual Compliance Deadlines: Modelos TC1/TC2: annual Seguridad Social reconciliation, due Monthly. Declaración de la Renta: due April - June. Certificado de Retenciones: annual employee tax certificate due Prior to income tax season.
Payroll Processing Calendar (Monthly Example):
Week 1-3: Gather -> Week 4: Calc -> Day 28/30: Pay. Key Regulatory Bodies & Filing Channels: Agencia Tributaria:
Tax collection. Online filing via official portals.
Seguridad Social: Social security collection.
Inspección de Trabajo: Labor compliance.
Penalties for Non-Compliance: Late Agencia Tributaria (AEAT) remittance:
Surcharges from 10% to 20% + interest plus interest. Seguridad Social shortfalls result in fines. Missing documentation increases audit exposure. Audit exposure increases with missing filings. Willful violations can trigger criminal liability.
How Ontop Manages Deadlines Automatically: Ontop tracks all compliance deadlines, sends alerts before due dates, and submits filings automatically. Finance team approves payroll ahead of deadlines. All documentation audit-ready.
Buyers search "how much leave Spain," "maternity leave," "paid leave entitlements." Impacts total cost of employment and satisfies planning intent.
Pagas Extraordinarias (July and December (or prorated)): All permanent employees entitled to 2 extra payments (usually 14 months total). Typically paid in July and December (or prorated), or prorated across year. Statutory bonus, not discretionary. Must factor into annual payroll cost.
Vacaciones: Minimum 30 calendar days (minimum) of paid vacation annually. Unused leave carryover varies by Convenio. Some allow unlimited carryover; others limit carryover. Leave paid at regular rate upon termination if unused.
Incapacidad Temporal (IT): Statutory sick leave paid at 60% from day 4 to 20; 75% onwards. Medical certification required after a few consecutive days as per local law. Seguridad Social may provide supplementary coverage for longer absences.
16 weeks of maternity leave. Paid at 100% via Seguridad Social by the local health entity. Additional parental leave may apply.
Public Holidays: Spain observes 14 days national holidays annually. Employees receive full pay or premium pay if required to work. Regional variations exist. Indemnización por Despido: Permanent employees receive 20 to 33 days per year worked depending on cause when terminated without just cause. Indemnización por Despido is a significant liability, must be accrued regularly and paid in full at termination.
How Ontop Automates Benefit Accrual & Compliance: Ontop automatically calculates Pagas Extraordinarias, leave balances (by Convenio type), maternity deductions, and Indemnización por Despido reserves. Payslips show accruals and deductions clearly. Audit-ready.
Decision makers need concrete cost inputs. Provide contribution ranges, deduction rates, and sample calculations for budget decisions.
Employer Seguridad Social And Additional Charges: Employer Seguridad Social varies by sector and contract. Approximate rates:
Employee Deductions And Tax Bands: Employee deductions include 6.35% Seguridad Social and progressive Agencia Tributaria (AEAT) tax: 19 - 47 Regional/local taxes may add extra percentages.
Total Employer Cost Example: Scenario: Permanent employee in Madrid at €2500 EUR/month gross.
For annual planning, expect the total employer cost to be roughly ~30% to ~35% above the gross salary, plus applicable statutory accruals for benefits.
Clarify payment rails, currency handling, and worker features that influence adoption and retention.
Local EUR € Transfers And Pay Runs: Payroll in Spain typically uses EUR € payments via local bank networks to local accounts. Ontop supports local rails so workers receive funds on payday in a single auditable run. No conversion friction.
Multi-Currency And Dynamic Conversion: When paying from other currencies, Ontop shows rates and fees before confirmation. Finance leaders get transparent previews. All conversions logged for audit.
Ontop Wallet And Instant USD Payouts: Workers receive USD via Ontop wallet backed by U.S. bank for fast access. Instant payouts reduce waiting times. Visible on worker dashboard and app. Useful for remote workers or USD preference.
Visa Debit And Worker Perks: Ontop issues Visa cards (physical or virtual) for immediate fund access. Security controls (instant freeze, limits) and perks (cashback, travel benefits, reduced transfer fees).
Buyers search "Spain payroll mistakes," "how to avoid penalties." Fear-based content drives conversions.
Falso Autónomo: Severe fines by Inspección de Trabajo for misclassifying freelancers.
Ontop supports payroll for both contractors and employees in Spain. The platform provides contractor (Autónomo) contract templates and full EOR services for employees so you can choose the structure that fits compliance and operational needs.
Ontop applies local employer contribution rules (typically around 6.35) and sector-specific rates when calculating payroll liabilities. The system presents a clear breakdown of employer charges during payroll preview so you know the total cost before approval.
Yes, mandatory bonus structures like Pagas Extraordinarias are common. The standard structure is 2 extra payments (usually 14 months total), usually paid in July and December (or prorated) or prorated across the year. Ontop supports both approaches and reflects proration on employees' payslips and in cost projections.
Employees typically see Seguridad Social deductions around 6.35 and progressive Agencia Tributaria (AEAT) income tax withholding between 19 - 47 depending on income bracket and region. Ontop calculates and withholds the correct amounts based on salary, location, and personal circumstances.
Yes, Ontop provides cost previews that include employer contributions, taxes, statutory charges (like Indemnización por Despido accruals), and regional variation. Use these previews to budget hires accurately and compare contractor versus employee scenarios.
No. Ontop can operate as your Employer of Record (EOR), handling all legal employer responsibilities and registrations. You avoid the complexity and cost of setting up a local company. Alternatively, if you have an entity, Ontop can serve as your payroll processor.
Common risks include misclassifying employees as contractors, missing Agencia Tributaria (AEAT) payment deadlines, and failing to adhere to Convenio Colectivo rules. Ontop's automation and expert support mitigate these risks.
