Since fiscal situations differ from country to country, very often expat or foreign employees in Spain face challenges in understanding their Spanish payslip, especially understanding how much tax they should pay on a monthly basis.
Let’s shed some light on this issue. Being employed, one will typically receive an official monthly payslip – called nómina – by the end of each month. This is a legal document which proves the contractual relationship with the employer and exchange of the provided services and payment. You have to sign two copies, one of which is taken by your employer and the other one is kept by you.
The amounts of the payslip are determined by the salary you have contractually agreed with your employer and the amounts reflected in the payroll records. This is based on the collective agreement.
The payslip is separated into three distinct sections:
- Header which must contain information about the employer and employee;
- Body which includes information about the worked period, earnings and deductions;
- Footer which includes information about the rates used for calculation
To help better understand payslip deductions, and to ensure you or your Spanish employees are being compensated accurately, contact our local Spanish office at firstname.lastname@example.org