Money
Pay in Spain: what is left of the gross
The 2026 minimum wage, the employee contribution rates, the difference between 12 and 14 payments, and how to read a Spanish payslip — with the official sources.
Two things surprise almost everyone arriving on Mallorca from northern Europe: how small the deductions from gross pay are, and how often an advertised salary turns out to be less than it sounded. Both come from the same source — Spain counts differently.
The 2026 minimum wage
Salario mínimo interprofesional (SMI) 2026
€1,221 gross per month over 14 payments
Royal Decree 126/2026. That is €17,094 a year, or €1,424.50 spread over 12 payments. Effective from 1 January 2026.
The minimum wage is the floor for every sector. Your sector's collective agreement is normally above it — in Balearic hospitality, well above. The higher figure always applies.
12 or 14 payments: the expensive misunderstanding
What comes off
Two blocks are deducted from gross pay: social security contributions and income tax withholding (retención de IRPF). The employee rates for 2026 are the same for everyone:
- General contingencies (contingencias comunes): 4.70 %
- Unemployment insurance: 1.55 % on an open-ended contract, 1.60 % on a fixed-term one
- Vocational training (formación profesional): 0.10 %
- Intergenerational equity mechanism (MEI): 0.15 %
Employee total for 2026
6.50 % (open-ended) or 6.55 % (fixed term)
Order PJC/297/2026. The far larger share of contributions is paid by the employer.
Income tax: why there is no table here
Your IRPF withholding depends on your own situation: annual income, contract type, marital status, children, dependants, recognised disability. Two colleagues on the same gross pay have different deductions, and rightly so. Any single percentage a guide quotes will be wrong for most readers.
The tax agency publishes an official calculator that works out your exact rate. It is linked in the sources below. Run it before you accept an offer, not after your first payslip.
Reading your payslip
- 01Header: employer, your details, your categoría profesional and the applicable collective agreement.
- 02Devengos — everything you have earned: base salary, allowances, and any spread share of the extra payments.
- 03Deducciones — the deductions: your social security share and IRPF, listed separately.
- 04Líquido a percibir: the amount actually transferred.
- 05Bases de cotización: the contribution bases. They decide your future unemployment benefit and pension — check they match what you earn.
When are the pagas extras paid?
Usually July and December, though the collective agreement may set other dates. They can also be spread across the twelve months — the payslip then says prorrateadas and there is no separate payment.
Is the minimum wage gross or net?
Gross. Social security contributions come off it; at that income level there is normally no income tax withholding.
My pay is below the collective agreement's scale. Is that allowed?
No. The agreement is the floor for your category. If the contract falls below it, the agreement applies and you can claim the difference.
What is the MEI on my payslip?
The Mecanismo de Equidad Intergeneracional, an additional contribution towards pensions. In 2026 it is 0.90 % in total, of which 0.15 % is yours.
Sources
- Real Decreto 126/2026, de 18 de febrero – Salario mínimo interprofesional para 2026(official)
- Orden PJC/297/2026, de 30 de marzo – Normas de cotización a la Seguridad Social para 2026(official)
- Agencia Tributaria – Servicio de cálculo de retenciones de IRPF(official)
Last reviewed
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