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Spanish payroll requires monthly Seguridad Social filings and quarterly IRPF declarations. Rippling automates TC1/TC2 filings, IRPF withholding, and mandatory pagas extraordinarias so your SL stays compliant.
Spanish payroll is administered through the Tesorería General de la Seguridad Social (TGSS) for social security and the Agencia Tributaria (AEAT) for income tax (IRPF) withholding. Employers file monthly TC1/TC2 forms to TGSS and quarterly Modelo 111 IRPF declarations to AEAT.
Pagas extraordinarias — two mandatory extra monthly salary payments in June and December — are a defining feature of Spanish payroll. The total annual cost for a Spanish employee is 14 months of base salary, not 12. Every employment contract references a convenio colectivo setting sector minimums.
Rippling's Spanish payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| Common Contingencies | 23.6% | Up to maximum base (€4,720.50/month for most categories). |
| Unemployment (Desempleo) | 5.5% | Employer share. |
| FOGASA | 0.2% | Wage guarantee fund. |
| Professional Training | 0.6% | |
| AT/EP (Work Injury) | Variable | Sector-based CNAE code. Typically 1–4%. |
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| Contribution | Rate | Notes |
|---|---|---|
| Common Contingencies | 4.7% | |
| Unemployment | 1.55% | |
| Professional Training | 0.1% | |
| IRPF Withholding | Variable | Based on annual income, personal deductions, and autonomous community. |
| State Band | Income | Rate |
|---|---|---|
| 1 | Up to €12,450 | 19% |
| 2 | €12,451–€20,200 | 24% |
| 3 | €20,201–€35,200 | 30% |
| 4 | €35,201–€60,000 | 37% |
| 5 | €60,001–€300,000 | 45% |
Autonomous communities add their own tranche. Rippling calculates the combined IRPF rate based on employee's autonomous community and Modelo 145 declaration.
Final payslip (finiquito) includes: proportional pagas extraordinarias, accrued annual leave, and notice pay. The finiquito constitutes a full and final settlement. Unfair dismissal: 33 days/year (cap 24 months). Objective dismissal: 20 days/year (cap 12 months).
Statutory: Seguridad Social (comprehensive), 22 working days leave, pagas extraordinarias.
Market standard: Private health insurance, tickets-restaurant, transport allowance, flexible remuneration plan. Tech: equity, flexible working.
Pagas extraordinarias are two mandatory extra monthly salary payments in June and December, calculated on base salary. Total annual cost is 14 months of base salary. Rippling supports both monthly accrual and lump-sum payment approaches.
TC1/TC2 are the monthly Seguridad Social contribution forms filed to TGSS via the RED system. The TC2 lists each employee's contribution base; the TC1 is the summary payment form. Rippling submits both automatically via SILTRA/RED integration on each payroll close.
Modelo 190 is the annual IRPF withholding summary filed with the AEAT by January 31, listing all employees and income tax withheld in the prior year. Rippling generates and files Modelo 190 automatically based on cumulative payroll data.
Yes. Rippling's Spanish payroll module submits TC1/TC2 via SILTRA/RED, calculates IRPF, handles pagas extraordinarias, manages registro de jornada, and files annual Modelo 190. thePeopleStack configures the full Spanish payroll setup.
