Practical tools
Spain Total Employment Cost Calculator
Discover the true cost of hiring an employee in Spain in 2026, including all employer Social Security contributions by sector and contract type.
Enter employee details
Include all bonus payments and fixed supplements
Affects the AT/EP (work accident) rate
Employer cost breakdown
Annual gross salary
—
Common contingencies (23.60%)
—
Unemployment (5.50%)
—
FOGASA wage guarantee fund (0.20%)
—
Vocational training (0.60%)
—
AT/EP — Work accidents & occupational disease
—
MEI — Intergenerational Equity Mechanism (0.58%)
—
Total employer Social Security contributions
—
Total annual employer cost
—
Total monthly employer cost
—
Social Security surcharge on gross salary
—
Severance provision (20 days/year — objective dismissal)
—
Indicative annual provision (20 days/year × daily rate)
This calculator is for guidance only. Consult a professional for personalized analysis.
What does it really cost to hire in Spain?
2026 employer Social Security contributions
The true cost of an employee always exceeds their gross salary. In 2026 the main employer contributions are: common contingencies 23.60%, FOGASA 0.20%, vocational training 0.60%, and MEI (Intergenerational Equity Mechanism) 0.58%. Unemployment contributions are 5.50% for permanent contracts and 6.70% for temporary contracts.
AT/EP: work accident rates by CNAE sector code
Work accident and occupational disease (AT/EP) contributions vary by the company's CNAE sector code. The general standard rate is approximately 1.50%, construction is 6.70% (high-risk activity) and hospitality is 4.90%. The exact rate is set by the premium table approved annually.
Severance provision
Companies should provision an annual amount equivalent to 20 days of salary per year of service — the statutory minimum for objective dismissal. This hidden cost should be included in personnel profitability models.
Flexible remuneration and cost optimisation
A well-designed salary structure — using flexible benefits such as meal vouchers, health insurance or pension plans — can reduce the contribution base and total personnel cost without reducing the employee's net pay. BMC helps companies optimise their payroll structure.
Frequently asked questions
Is the MEI contribution permanent?
The Intergenerational Equity Mechanism (MEI) was approved in the 2023 pension reform. In 2026 the employer contribution is 0.58% of the contribution base. It is scheduled to increase gradually until 2032.
Can employer contributions be reduced?
Yes. Bonifications and reductions exist for permanent contracts for young workers, people with disabilities, workers over 52, long-term unemployed and other groups. Reductions also apply in rural areas and for companies with fewer than 10 employees in certain circumstances.
What is the contribution base?
The contribution base includes gross salary plus all fixed salary supplements. It is subject to an annual maximum cap (approximately €54,000 in 2026). Salaries above the cap are only subject to contributions up to that maximum.
Is a temporary contract more expensive than a permanent one?
Yes, mainly due to the higher unemployment rate (6.70% vs 5.50%). In addition, temporary contracts accrue a termination indemnity of 12 days/year at the end, while permanent contracts do not generate automatic severance unless dismissed.
Does this include the employee's own contributions?
No. This calculator shows only employer contributions. The employee also contributes (approx. 6.35% common contingencies + 1.55% unemployment + 0.10% training + 0.10% MEI on gross salary), which are deducted from their payslip.
Optimise your payroll cost structure
Our employment and tax experts help you design an efficient remuneration structure that reduces payroll costs without disadvantaging your employees.