SHARE
COPY LINK

WORKING IN SPAIN

‘Spain must invest in Spaniards rather than turning to migrants’: EU work chief

The European Commission’s head for jobs and social rights has said Spain “must first find a solution for young people, women and the elderly” with regard to its labour market and “see later if they need immigrants”.

nicolas schmit spain
European Commissioner for Jobs and Social Rights Nicolas Schmit said “Spain must question whether the minimum wage allows for a decent life or creates poor workers". Photo: JULIEN WARNAND / EPA -POOL / AFP

The European Commissioner for Jobs and Social Rights Nicolas Schmit recently took part in a summit on job security in Bilbao, where he spoke with Spain’s Labour Minister and Second Deputy Prime Ministers Yolanda Díaz about the state of affairs for workers in the country. 

When discussing potential solutions to Spain’s high unemployment rate, Schmit explained “I would not exclude immigration, but when I analyse the data, I see youth unemployment of 30 percent, more than double the European average”.  

“The priority for Spain must be to invest in its people,” Schmit continued.

“They must first look at their labour market and find a solution for young people, women and the elderly. They will see later if they need immigrants”.

Despite high unemployment levels which currently amount to three million people, Spain has worker shortages in a wide variety of sectors. 

READ ALSO: The ‘Big Quit’ hits Spain despite high unemployment and huge job vacancies

The Spanish government recently changed its immigration laws to make it easier for employers to hire non-EU citizens for sectors with shortages, from waiters to plumbers, whereas previously recruiters were required to prove that they couldn’t find an EU candidate for the job and the skills shortage list was limited and outdated. 

READ MORE: How spain is making it easier for foreigners to work in Spain

In 2023, Spain’s Ministry of Inclusion, Social Security and Migration wants to hire 62,000 third-country workers to cover an array of construction and trades jobs, something the country’s Labour Ministry has not agreed to yet. 

READ ALSO – EXPLAINED: Spain’s plans to recruit thousands of foreigners for construction and trade jobs

The government also recently passed its new startups law to attract foreign investors, digital nomads and talent to the country.

Could Spaniards not be trained to do these jobs as Schmit alludes to? Currently, low wages and unstable working conditions are dissuading many locally trained professionals from staying.

This includes almost 20,000 doctors who have moved abroad in recent years as salaries in other European countries are significantly higher than in Spain, with a newly qualified doctor’s salary only around €1,600 gross per month.

Staff shortages in the health sector are not helped by the fact that foreigners with non-EU qualifications wait for several years for their qualifications to be recognised in Spain through an unnecessarily laborious administrative process known as homologación. This applies to a number of regulated fields, from engineering to dentistry, all of which face shortages. 

READ MORE: How Spain is ruining the careers of thousands of qualified foreigners

Spain’s Socialist-led government has partly addressed some of its labour market issues by reducing the rate of temporary contracts and increasing the minimum wage (SMI), but voices within the opposition have accused Sánchez’s administration of “dressing up” the dire reality.

When asked about the rise in minimum wage, Schmit said that he believes “it will not mean significant changes for Spain, which already has a tradition of updating the minimum wage on a regular basis… but the government must take into account factors such as the cost of living and the economic context”.

“Spain must question whether the SMI allows for a decent life or creates poor workers. Its economy cannot be supported by low wages and low productivity,” he continued.  

When asked if salaries and inflation have to go hand in hand, Schmit argued “wages must be set by collective bargaining. We are experiencing very high inflation because of the explosion in energy and food prices. If there is a large lag between wages and inflation, there will be an impact on demand and the risk of recession will increase”.

With regards to pensions, Schmit explained: “I don’t think that pensions are very high in Spain and if you leave a gap between the rise in benefits and inflation, you can create a situation of poverty among the elderly. Spain has a disadvantage in that it has one of the fastest-ageing societies… The solution is to modernise the economy to make it more productive and attract more people to the job market”.  

Despite these issues, the commissioner acknowledged that the Spanish labour market has surprised many with its resistance this year. “Employment will remain strong if there is no deep recession,” he said.  

“The national plan for access to European funds has a good combination of measures to invest in green energy, digitisation, education and public employment services… Spain experienced its economic miracle due to the real estate boom, which exploded, and now it has to transform to go in the right direction”.

According to a report carried out by human resources company Hays on work trends in Spain in 2022, 77 percent of Spaniards surveyed said they would change jobs if they could. Furthermore, 68 percent of them confessed that they are actively looking for another job and the main reason they argue is to get a better salary. 

According to Eurostat data from January 2021, 37 percent of Spain’s workforce is overqualified, 17 percent higher than the EU average.

READ ALSO: Why more people than ever in Spain are overqualified for their jobs

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

WORKING IN SPAIN

How to understand your payslip in Spain

If you’re an employee for a company in Spain, each month you should receive a payslip from your employer, detailing how much you earn, deductions and plenty more. Here's how to read and understand your Spanish payslip properly.

How to understand your payslip in Spain

It can sometimes be confusing working for a company in another country. Even if you work in English, your payslip, or nómina as it’s called here, can be hard to understand.  

According to the salary platform EMT, more than 50 percent of people in Spain don’t know how to read everything on their payslip and don’t fully understand all the numbers on there.

It’s important to be able to understand everything about the amount you’re getting paid and what’s being deducted from that amount each month so that you can stay on top of your finances. Read on for our handy guide to help you out. 

There are essentially three sections to your payslip, which include the header, the middle section detailing your earnings and deductions and the footer, where you’ll see the rates applied for your calculations.

Here’s an example of what a nómina or Spanish payslip usually looks like. 

Header

According to Spanish law, each payslip must have a header that identifies both the worker and the company. It should include:

Information about the company
Name of the company
Registered office of the company
Tax Identification Code (NIF)
Social Security Registration number

Information about you (the employee)
Full name
Your DNI, NIE or TIE
Your social security number
Position with the company
Professional group
Seniority level
Date you started working for the company

Middle section 

Settlement period or Periodo de liquidación
A payslip is in fact similar to an invoice, so it should include a settlement period where it states the number of days worked for the payment being received. This is typically one month or 30 working days.

Revenues and expenses/accruals or Devengos
The revenues and expenses part of your payslip will state the gross amount of income that you have earned for a particular period worked. It will include your base salary, as well as bonuses and extra non-salary payments that are not taxed as part of your salary. These include compensation or payments for redundancy and must not exceed 30 percent of your salary payments.

Base salary or Salario base
Your base salary is the minimum amount you get each month. This will be at least €1,000 which is the minimum wage or SMI set for 2022, if you are working a full day of at least 40 hours per week.

This section will also include:

Supplements or Plus Convenio
This will detail any extra amounts received in relation to your work, such as extra shifts covered, working overtime and payments for extra training.

Extraordinary bonuses or Gratificaciones extraordinarias
If you work in sales, you may regularly get bonuses, but you may also get extra ones at Christmas for example. You may actually receive 14 payments but will receive them 12 times a year or once per month.

Remuneration
This part refers to extra payments to which income tax can be applied such as payments for private medical insurance, petrol for a company car or restaurant coupons to use when you’re working away.

Expenses
This refers the expenses you have incurred in order to carry out your job. It could be the cost of material or transportation if these have previously been agreed upon with your employer.

Social security and benefits or Prestaciones e indemnizaciones de la Seguridad Social
There may also be added benefits for suspensions or dismissals, as well as expenses assumed by the company, such as disability or unemployment benefits.

At the end of all of this, with everything added together, you will see your total gross salary. It’s important to remember though that this isn’t the amount you will get in your bank account each month as there will be several deductions to take into account first.

Deductions or Deducciones

This section of your payslip includes all amounts taken away from your total gross salary in relation to income tax and social security payments. These will include:

Social security or Seguridad Social

Your social security covers for healthcare, sick pay, accidents at work, maternity or paternity pay or temporary disability, and although your employer pays this, you will be responsible for paying 4.70 percent, which will be taken away from your total.

Unemployment or Desempleo
This is the amount that will cover you for potential unemployment or redundancy should the situation arise and varies according to the type of contract you have. It could be anything from 1.55 percent for a fixed-term contract to 1.60 percent for a full-time contract.

Overtime due to force majeure or Horas extraordinarias por fuerza mayor
This will include any extra hours that you worked involuntarily.

Overtime without force majeure or Horas extraordinarias sin fuerza mayor
These are the extra hours you worked voluntarily and can incur withholdings up to 4.7 percent.

Personal income tax or Impuesto sobre la renta de la personas físicas

Your income tax or IRPF will also be taken away from your total gross salary before it appears in your bank account. The percentage that you are charged will vary depending on how much you earn as well as your personal situation, your family (including if you’re married and have children) and the type of contract you have.

Salary advances or Salario Anticipo
If you are allowed to get any advances on your salary, this will also be reflected in your payslip and deducted here.

Value of products you received
This refers to the products and services you may get from your company received as wages, which are also subject to income tax.  

Other deductions
Other deductions on your income tax may include union payments or loan repayments for example.

After all of this is calculated, you will be able to know the actual amount that you should finally receive. If you need to question anything, you can refer to the footer section, which will state the specific rates applied for your calculations

SHOW COMMENTS