Reading your employment contract (contrato) and payslip (nómina)

Terms used

• Indefinido — An indefinido contract is a permanent contract with no end date.
• Fijo discontinuo — A fijo discontinuo contract is permanent but covers seasonal or intermittent work, with set periods of work and inactivity.
• Convenio colectivo — The convenio colectivo is the collective agreement between employers and unions that sets minimum pay and conditions for a sector, province or company.
• Devengos — Devengos are the gross earnings section of your payslip, before deductions.
• IRPF — The IRPF is Spain's personal income tax, withheld from your pay in advance.
• Prorrateadas — Prorrateadas extra payments are spread across the 12 monthly payslips instead of paid in June and December.
• Líquido a percibir — The líquido a percibir is your net pay: gross pay minus deductions.

Key rules

• Contract cannot undercut the convenio: Your contract cannot give you less than your collective agreement says.
• Temporary contracts: A temporary contract without a valid reason is presumed to be indefinido.
• Pagas extra: Prorated or not, your annual pay is the same; only the timing changes.
• Net pay: Your net pay is gross pay minus social security and IRPF withholding.

Start with the contract type

Your contract shows one of three types. The type tells you how secure the job is.

• Indefinido has no end date. It is the normal way to hire in Spain.
• Temporal is fixed-term. Only two reasons are allowed: production reasons (including occasional, foreseeable needs for a limited number of days a year) and replacing another worker. A temporary contract without a valid reason is presumed to be indefinido. Duration is generally limited to 6 months, extendable to 12 by sector agreement.
• Fijo discontinuo is a permanent contract for seasonal or intermittent work. You are called in set periods, in order of seniority. Between periods you are not working, but you keep your seniority, and you may be able to claim unemployment benefit. It can also be used for contractor and concession work.

Find your collective agreement

The convenio colectivo is an agreement between employers and unions for a sector, province or company. It sets minimum pay by category, working hours, holidays, extra payments, overtime and trial period. It applies even if your contract does not mention these things. Your contract cannot give you less than the convenio.

The contract and the payslip both show its name. To read it:

1. Check the name on your contract or payslip.
2. If it is missing, note your employer's main activity and province.
3. Search the official registers: the Ministry of Labour's register of agreements (REGCON), or the national, regional or provincial official gazettes.
4. Or ask HR or the workers' representatives.

Convenios usually run for several years. After they expire they stay in force (ultraactividad) until a new one replaces them.

Read the earnings on your payslip

The earnings section is called devengos. It is your gross pay, before anything is taken off.

• Salario base is the fixed basic pay for your job category. Compare it with the pay table in your convenio.
• Complementos are additions: seniority (antigüedad), responsibility, night shifts, bonuses, commissions and others set by the convenio.
• Percepciones no salariales are payments such as expenses or meal allowances. They sit outside salary and may be exempt from contributions.
• Pagas extra are extra payments, usually two a year (summer and Christmas), so you get 14 payments. If they are prorrateadas, they are spread across the 12 monthly payslips instead of arriving in June and December. Your annual total is the same either way.

The total devengado is your gross pay for the month.

Read the deductions

Deducciones come off your gross pay.

• Cotización a la Seguridad Social is your social-security contribution. It covers common contingencies, unemployment, professional training and the MEI (an intergenerational equity levy, since 2023). It is worked out on your contribution base, which includes prorated extra pay, up to a maximum base. For a typical indefinido contract it is roughly 6.5% to 6.7% of the base, and a bit higher for temporary contracts.
• Retención IRPF is income tax withheld in advance. The percentage is set from your expected annual gross pay, your family situation and other data you declare. It can run from 0% to well above 30%. It is settled in your annual tax return.

Your líquido a percibir is the net pay: gross less deductions. That is what reaches your bank account.

Quick checks each month

• The contract type on the payslip matches your contract.
• The convenio named is the right one, and your category and salario base match its table.
• Social-security percentages are near the typical level above.
• The IRPF percentage fits the family situation you declared.
• Your pagas extra are either paid in June and December or prorated, not missing.

If something does not add up, ask HR first, then your workers' representatives. Rates and maximum bases are reset each year, so use the current figures. The Basque Country and Navarra have their own tax regimes.

The timeline, documents and questions below cover the rest.

Timeline and deadlines

• A temporary contract without a valid cause is treated as indefinite: from the start of the contract

• A temporary contract generally ends: after up to 6 months, or up to 12 months if the sector agreement allows

Documents you need

• Your employment contract (contrato), issued by your employer, showing whether you are indefinido, temporal or fijo discontinuo and naming your collective agreement.

• Your monthly payslip (nómina), issued by your employer, showing gross earnings, deductions and net pay.

• The text of your collective agreement (convenio colectivo), found through the official registers or by asking HR or the workers' representatives, to compare its pay tables and conditions with your contract.

Frequently asked questions

Does a fijo discontinuo contract mean I lose my job between seasons?

No, a fijo discontinuo contract is permanent, so you keep your seniority between work periods. You are called back in order of seniority when the next period starts. You may be able to claim unemployment benefit during the months you are not working.

What happens if my temporary contract has no valid reason?

A temporary contract without a valid cause is presumed to be indefinite. Since the 2021 reform, only two kinds of temporary contract remain: for production reasons and to cover another worker. Generally they last up to 6 months, or up to 12 months if the sector agreement allows.

Can my contract give me less than the collective agreement says?

No, your contract cannot give you less than your convenio colectivo, the collective agreement for your sector. The convenio applies even if the contract does not mention these terms. If it has expired, it normally stays in force until a new one replaces it.

Why is my payslip total the same if my extra payments are prorated?

Prorated extra payments (pagas extra) are spread over the 12 monthly payslips instead of being paid in June and December. The annual total is the same, so your monthly pay looks higher but you get no lump sums. Check your payslip to see which way you are paid.