Employment system

Contracts and incentives promoting business and employment


Employment system

A flexible labour market with hiring incentives that benefits employers

Labour legislation has been subject to adjustments and modifications to simplify and add greater flexibility to the labour market. The establishment and termination of contracts, as well as duration conditions, are now more efficient and in line with the current economic situation, which helps reduce company costs.

Minimum wages and Social Security

The general national minimum wage is set annually, but the minimum wage for each professional category is often negotiated in the collective labour agreements. In 2017, the minimum wage is 707.7 € / month or 9,907.8 € / year (which includes 12 monthly payments and two special payments).

Social Security contributions are paid between the employer and the employee, depending on the employment and professional category. In 2017, the employer contribution is 30.9% for general contingencies and the employee contribution is 6.35%.

Incentives and benefits to promote employment

There are many incentives and benefits to reduce an employer’s Social Security contributions in order to promote certain types of contracts and the employment and recruitment of specific groups of workers, such as disabled workers, people under 30 and over 45, etc.

Senior Management special conditions

There is a special labour relationship between senior management personnel and employer, regulated separately from a regular employment agreement and allowing a wider margin for manoeuvre when defining the contractual relationship.

Further information

Please contact us for further information regarding work permits, setting up a business fiscal and labour legislation, environmental issues or any other subject related to foreign investment and not addressed here. 


Passeig de Gràcia, 129
08008 BARCELONA
Tel: (+34) 93 4767287
catalonia@catalonia.com

Our labour market flexibility both promotes businesses and reduces employers’ costs established in Catalonia.