Category Archive Employees

How much does an employee cost in Spain

How much does an employee cost in Spain? (includes calculator)

One of the main concerns for foreign businessman who intend to establish a company in Spain is how much does an employee cost in Spain, ie, what is the monthly amount of tax to be paid to the Social Security for each worker. At the end of this post you will find a cost of hiring an employee calculator.

Likewise, briefly understanding the operation of the Spanish labour contribution system to the Social Security can provide more security in the decision process of creating or expanding a business to Spain.

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Equity compensation for employees in Spain

It is common for companies to use different retributive options involving participation in the capital of the company. The aim is to retain employees and make them participant in the profit of the company. This is the so called equity compensation for employees.

Among these the most important compensation plans for employees are:

Share purchase plans for employees

in this case the company offers the employee shares at a below the market price. The employee becomes a shareholder of the company being entitled to dividends, voting, etc. For the company the cost is the difference between the share price offered to the employee and the current market price.

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