By starting your company in Spain, it is very likely that you will need to hire employees and then fix their remuneration. The Spanish inter-monthly salary, commonly known as SMI, amounts to 645.30 gross Euros for a full-time contract. The daily SMI, meanwhile, reached 21.51 gross Euros.
The average wage in Spain is 18,000 Euros a year. Before determining the salary of your future employees, you must have a clear picture of the wages in Spain. To do so, it is best to seek advice from professionals in the sector or with friends who live locally. There are also pay scales that can be found online and that were developed by Spanish recruitment agencies, although they slightly towards the higher end of the scale. You can also get an idea of pay in effect during the interview with the potential candidate. It is common that recruiters ask candidates how much their previous salary was. You will then know if the salary you are to offer is adequate or not.
The cost of living in Spain is totally dependent on the area where you wish to settle. Major cities such as Madrid and Barcelona have a similar standard of living as other big cities; you should therefore take this into account when deciding the remuneration of your staff. However, in some rural areas and in the south of Spain, the pay is often closer to the minimum wage. In Spain, the most common thing to do is to deal directly with gross wage; this will avoid any confusion especially with Spanish candidates.
The salary range in accordance with each sector is defined in all collective agreements. It is important to consult them before making a decision. Greatly appreciated yet relatively uncommon, employee benefits are a good way to retain your staff in Spain. Benefits help supplement low wages and it has been proven to significantly increase employee motivation. - Mutual fund: these provide access to a private healthcare system, completely independent of the public system. Funding for a mutual fund is a real asset in the country where the public system is known for its long waiting lists and unmotivated staff. - Restaurant tokens: these may be in the form of a chequebook or a credit card. Your employees can benefit from some help for their day to day lunch expenses. - Daycare tokens: as the name suggests, this help fund childcare expenses for young children. It is the most appreciated form of help for parents. - Transport: companies sometimes offer discounted transport cards for its employees or finance their travel entirely. - Mobile Phones