Payroll in Spain: Understanding the 13th and 14th salary

Payroll in Spain often works differently from the standard 12‑month salary model many international employers are used to. One of the clearest examples is the 13th and 14th salary structure.

In simple terms, many employees in Spain are paid through a 14‑payment salary model rather than a straight 12‑payment model, so the annual salary is split into 14 parts instead of 12, with two extra salary installments usually paid during the year. This is not extra money on top of the agreed salary – it is the same total amount, just divided differently across the year.

The two additional payments date back decades and were traditionally paid at Christmas and in the summer to help workers cover major seasonal expenses like holidays and end‑of‑year costs. These extra payments are often described as the 13th and 14th salary, extra salary payments, or extra pay.

For employers, the important point is that they are generally treated as part of normal salary planning rather than as a purely discretionary bonus. If you are looking at hiring in Spain, it is important to build local payroll rules into the process early rather than trying to adjust them later.

What is 13th and 14th salary?

In practice, 13th and 14th salary refers to two additional salary installments that sit within the employee’s total annual compensation. Instead of thinking about salary as twelve equal monthly payments, employers should think about Spain as a market where salary is often structured across fourteen payments.

A simple way to explain it is this:

• Annual salary can be split into 14 payments instead of 12.
• Employees may receive two extra salary installments during the year.
• Those extra amounts are often linked to summer and Christmas pay periods.
• In some cases, the same amounts may be spread across 12 monthly payslips instead.

Why does it matter for payroll planning?

If a company uses a salary approach that makes sense in another country, it may still create confusion in Spain. An annual number may be commercially correct, but the employee also needs clarity on how that amount is delivered across the year.

That matters because payroll is not just about transferring wages. It also includes compliant payslips, tax handling, contribution calculations, and clear salary records.

For growing teams, payroll structure should be reviewed before onboarding, not after the first cycle has been processed.

Can extra salary be paid monthly?

Yes. In some cases, the value of the extra payments can be prorated across the year so the employee receives the same overall annual salary through 12 monthly payroll runs.

That does not remove the need for careful payroll planning. Employers still need to make sure the salary structure is clear, documented properly, and reflected accurately in the contract and payslip setup.

This is one reason businesses should align payroll with the wider employment framework rather than treating salary as a standalone admin task.

Can collective agreements affect extra salary?

Yes, they can. This is one reason payroll should not be reviewed on its own.

The wider employment framework may affect:

• Salary levels.
• Wage elements.
• Payment timing.
• Working schedules linked to compensation.
• Other practical payroll rules.

What should employers check before hiring?

That is why payroll and contract planning should sit alongside a review of employment law in Spain, especially where sector-specific standards may apply.

A good payroll review should cover more than the gross monthly figure. Employers should make sure the compensation model is clear to both the business and the employee.

Key checks include:

1. How annual salary is being presented.
2. Whether extra payments are built into monthly payroll or handled separately.
3. Whether a collective agreement affects salary structure.
4. Whether the contract wording matches the payroll model.
5. Whether employer costs have been fully budgeted.

What payroll mistakes are common?

This is especially important for companies comparing EOR support with setting up a company in Spain. In both cases, payroll must be designed around local practice from day one.

The most common mistake is assuming that payroll in Spain is mostly a technical task. In reality, payroll often sits at the center of compliance.

Other common issues include:

• Using unclear salary language in offers.
• Underestimating total employment cost.
• Forgetting the impact of extra payments.
• Failing to align contract terms and payslips.
• Treating payroll as separate from offboarding.

How can employers simplify payroll in Spain?

That last point becomes especially important when an employee leaves. If you are planning workforce changes, our page on severance pay in Spain explains why final salary and termination planning should be considered together.

The best way to simplify payroll is to make the structure clear before the hire begins. Employers should align the compensation package, employment contract, payroll process, and local compliance model.

For many businesses, the challenge is not processing payroll once. The challenge is maintaining a compliant system as headcount grows.