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

The minimum interprofessional wage is adjusted annually. In 2024 it amounts to 1,134 euros per month. In any case, it is the collective bargaining agreements that determine the minimum wages for each professional group, always being equal to or higher than the previous one.

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 business environment, with highly competitive labour and operating costs in a low-risk area within the European Union.

Labour costs in Spain, both in annual averages and in gross terms per hour, are 21% lower than the European Union average (EU-28), reaching a cost differential of 60% with respect to the Nordic countries.

Within Spain, average labour costs in the Canary Islands and Tenerife are among the lowest, offering significant savings compared to the main capitals.

Average total labour costs per employee in Spain and Tenerife, €

	National total	Tenerife	Difference
Industry	€2,976	€2,371	20.3%
Construction	€2,560	€2,243	12.4%
Services	€2,441	€1,902	22.1%

Source: National Statistics Institute, Third quarter of 2020.