How net pay is calculated in Spain
Spanish salaries are quoted as an annual gross figure (salario bruto anual). Two deductions turn it into the net on your payslip (nómina): employee social security contributions and the IRPF income-tax withholding (retención). In 2026 an employee on a permanent contract pays 6.50% social security: 4.70% common contingencies (pensions, sickness), 1.55% unemployment, 0.10% vocational training and 0.15% for the intergenerational equity mechanism (MEI). Contributions are charged on annual gross ÷ 12, between €1,424.40 and €5,101.20 a month. Pay above that ceiling is subject only to the small solidarity contribution (employee share 0.19–0.24%).
- IRPF withholding: your employer applies one withholding rate to every payment. It is set by the official AEAT algorithm: gross minus social security, minus €2,000 general expenses and the work-income reduction (up to €7,302 for low earners), taxed on the 19%–47% retention scale, minus the same scale applied to your personal and family allowance (€5,550 plus amounts for children, parents over 65, age and disability). Low incomes are not taxed at all: up to €15,876 a year for a single person without children in 2026.
- Family situation (form 145): situation 1 (single parent), 2 (spouse earning €1,500 or less) or 3 (everyone else). It mainly raises the income threshold below which nothing is withheld. Children under 25 add €2,400, €2,700, €4,000 and €4,500 to the allowance, plus €2,800 for each child under 3. Parents usually split this 50/50.
- Contract type: fixed-term contracts pay 1.60% unemployment insurance instead of 1.55%, and if the contract lasts less than a year, at least 2% IRPF is withheld.
- Regions: withholding uses one state-wide scale everywhere in territorio común. Your annual return (Renta) applies your autonomous community’s scale and deductions, so the final tax can differ. País Vasco and Navarra run their own income tax and are not covered. In Ceuta and Melilla withholding is 60% lower.
| Item | Per year |
|---|---|
| Social security (6.50%) | €1,950.00 |
| IRPF withholding (16.42%) | €4,926.00 |
| Net | €23,124.00 (€1,651.71 per payment in 14 payments) |
14 payments or 12
Most collective agreements pay 14 instalments: 12 monthly salaries plus two extra payments (pagas extra), usually in June and December. Some employers spread the extras over 12 payments instead (pagas prorrateadas). Annual gross, social security and tax are identical either way, because the contribution base always includes the prorated extras. Only the size of each payment changes. A monthly salary of €2,000 in 14 payments is €28,000 a year.
Converting a Spanish hourly wage
The calculator multiplies the hourly rate by weekly hours × 52. Paid holidays and public holidays count, and the rate is assumed to include the share of the pagas extra. €13.50 an hour at 40 hours is €28,080 a year. Collective agreements often state an annual working time instead. The legal maximum of 40 hours a week works out at about 1,826 hours of actual work a year, so the rate per hour actually worked is higher than the rate per paid hour. The 2026 minimum wage (SMI) is €1,221 a month in 14 payments, or €17,094 a year.