Employer’s social contributions and welfare costs in Spain

All posts, Spanish taxation Leave a comment   Published on par Jonatan Carbonell

social contribution and taxes in SpainIn this article we will discuss the topic of social contributions and welfare costs in Spain.

In Spain as well as in France, you have to pay different organizations: the Social Security (dealing with all the health issues), unemployment insurance guarantee fund and professional training.

Here are the major social contributions rates.

The system for auto-entrepreneurs is different.

The column “Employer rate” level only applies for the limited companies in Spain.

  Employer Rate Wages Rate Total
Social security: health 23.60% 4.70% 28.30%
Unemployment insurance 5.50% 1.55% 7.05%
Guarantee fund for employees 0.20% - 0.20%
Vocational training 0.60% 0.10% 0.70%
Total 29.90% 6.35% 36.25%
occupational accident Variable (between 0.90 and 7.30%) -


You can see that the Spanish social contributions for both employees and employers are lower than those of other European members.  For example, in France a manager would pay between 35% and 45% instead of 30.60% in Spain. The difference is even more significant for employees. A manager would pay only 6.35% of social contributions for its employees whereas it would pay about 20% in France. The Spanish taxation system is then very advantageous for business starting up.

Published on par Jonatan Carbonell

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