Twelve or fourteen payments, extra pay (pagas extra) and prorating

Key rules

• Annual total: Whether pay comes in 12 or 14 payments, the annual gross total is the same.
• Extra payments: You are entitled to at least two extra payments a year, unless your contract prorates them into the monthly payments.
• Comparing offers: Compare annual gross and estimated net pay, and check whether the quoted figure is annual.

The annual total is what counts

Your annual gross pay is the same whether it arrives in 12 or 14 payments. Fourteen payments do not mean more money. They mean smaller monthly amounts, plus two bigger payments during the year.

What the pagas extra are

Spanish employees are entitled to at least two extra payments a year, called pagas extra. One is paid at Christmas. The other falls in a month set by your collective agreement or agreed between your employer and workers' representatives, often summer.

Your contract or agreement can instead spread (prorate) these two payments across the 12 monthly payments. Both ways are allowed.

What it looks like in euros

Take €28,000 gross a year:

• Over 12 payments, you get about €2,333 a month.
• Over 14 payments, you get €2,000 a month, plus two payments of €2,000 in the months your contract sets.

The yearly total is identical. Only the timing changes.

What changes on your payslip

• Your employer works out income tax withholding (IRPF) on the annual total, so the tax over the year is similar.
• With 14 payments, withholding is higher in the extra-payment months and lower in the others. Those months have a much larger gross and net.
• Social Security contributions are calculated on your pay, including prorated extras, every month.
• Exact withholding depends on your personal circumstances and your employer's calculation.

The minimum wage

The minimum wage (SMI) is stated as a monthly amount in 14 payments, and also as an annual and a daily figure. If your contract prorates the extras, your monthly minimum is the annual figure divided by 12. The annual amount is the legal test.

How to compare two offers

1. Check that the quoted gross is annual, not monthly.
2. Ask whether the extras are prorated or paid separately.
3. Compare total gross annual pay and estimated net annual pay, including variable pay, benefits and in-kind items.

If the annual totals are equal, neither offer is worth more. The difference is how much arrives in a typical month and when the extras come. Plan your budget around that, especially for rent in your first months, when a 14-payment contract may leave some months with less cash.

The FAQ below answers common follow-up questions.

Frequently asked questions

Is the minimum wage (SMI) stated in 12 or 14 payments?

The minimum wage (SMI) is stated as a monthly amount in 14 payments, and also as an annual and a daily figure. If your contract prorates the extra payments into 12 monthly payments, the monthly amount is the annual SMI divided by 12. The annual amount is what counts legally.

How many extra payments does the law give me each year?

You get at least two extra payments a year by law. One is paid at Christmas, and the other falls in a month set by your collective agreement or by agreement between the employer and workers' representatives.

Does prorating change how much tax is withheld each month?

Yes, prorating changes your monthly withholding (IRPF, income tax taken from pay) because the employer calculates it on the annual total. With 14 payments, withholding is higher in the extra-payment months and lower in the others. Social Security contributions include prorated extras every month, and your net annual pay stays essentially the same.

How do I compare two offers with different numbers of payments?

Compare the total gross annual pay and the estimated net annual pay, including variable pay and benefits. Check that each quoted gross figure is annual, and whether the extras are prorated.