LABOUR MARKET
In Spain, labour relations are regulated by the Workers’ Regulations. These regulations have been adapted and modernised over the years, with the aim of making the labour market more dynamic in order to favour employment and investment.
Minimum age
The minimum age for hiring is 16. Children under the age of 18 are protected by a number of special rules which, for example, regulate that they may not work overtime or work at night.
Holidays
Workers are entitled to a minimum of 30 calendar days of holiday per year. In addition, they may enjoy official holidays, which may not exceed 14 days a year.
Working day
The maximum working day is 40 hours per week. As with wages, collective agreements or individual contracts of employment can modify it, but never exceed it.
Social Security
As a general rule, all employers, their employees, self-employed workers, members of production cooperatives, among others, must register and are obliged to pay contributions to the Spanish Social Security System.
For employees, social security contributions for permanent contracts, the employer must pay 29.90% and the employee 6.35%; for temporary contracts, the employer must pay 31.10% and the employee 6.40%. For self-employed workers, the contribution base and the contributions vary according to the age of the worker and his contribution base in the previous year. In general, the contribution for common contingencies is 28.30% of the contribution base.
Wages
In 2026, it amounts to €1,221 gross per month in 14 payments. In any case, collective bargaining agreements determine the minimum wages for each professional group, which are always equal to or higher than this amount.
Trial periods
Companies can agree on a trial period to test the skills of a new worker. During this period, contracts can be terminated freely.
Labour costs
Tenerife offers an attractive environment for business, with highly competitive labor and operating costs in a low-risk area within the European Union. Labor costs in Spain, both in annual averages and in gross hourly terms, are 21% lower than the European Union (EU-28) average, reaching a cost differential of up to 60% compared to Nordic countries.
Within Spain, average labor costs in the Canary Islands and Tenerife are among the lowest, offering significant savings compared to major capital cities.
Average total labor costs per employee in Spain and Tenerife.
| National Total | Canary Islands | Difference | |
|---|---|---|---|
| Industry | €2,976 | €2,371 | 20.3% |
| Construction | €2,560 | €2,243 | 12.4% |
| Services | €2,441 | €1,902 | 22.1% |
