Understanding Salary Structure, Social Security, and Payroll in Spain

The salary structure encompasses various concepts a worker receives monthly. This includes the base salary, the principal amount for work performed. Bonuses are also part of the compensation, often based on personal characteristics such as age or years of service. Job characteristics also influence rewards and goals. In Spain, workers are entitled to two extra payments annually: one in summer and one at Christmas. The summer bonus, paid in July, covers the first six months, while the Christmas bonus, paid in December, covers the second half of the year. Each extra payment equals 30 days of salary. All of this is regulated by the collective agreement of each sector. These agreements, between employee representatives, unions, and business representatives, define working conditions, including salary tables that list professional positions and their corresponding pay and bonuses. The gross monthly amount is subject to two payroll deductions: income tax and social security.

Social security is a welfare system that protects citizens against various contingencies, such as accidents, diseases, and work-related injuries, including those occurring during commuting (in itinere). It also covers unemployment; individuals who have contributed to social security for more than 12 months are entitled to unemployment benefits. Retirement is also covered by social security, providing medical and pharmaceutical care. These features represent a significant public expenditure, funded by mandatory fees charged to employers and workers. Social security operates on the principle of solidarity, where contributions support those in need.

Social security systems include the general scheme, mandatory for all employees, with contributions from both the employer (fee business) and the worker (fee worker). Special systems exist for the self-employed, who can choose between minimum and maximum contribution rates. The employer's social security contribution is mandatory and is deducted from the worker's wages.