Understanding Payroll in Spain
A guide to how TempusWork handles Spanish payroll calculations and compliance.
Payroll Components
Gross Salary Breakdown
- Base salary — The contractual monthly amount
- Pro-rata extras — Two extra payments (June and December) prorated monthly
- Complements — Seniority, role, or performance-based additions
- Overtime — Hours beyond the standard work schedule
Deductions
- Social Security (Seguridad Social) — Employee contribution (~6.35%)
- IRPF — Income tax withholding (varies by salary, personal situation)
- Other deductions — Advances, union fees (if applicable)
Monthly Payroll Process
- Review — Check the pre-calculated payroll for each employee
- Adjust — Add any variable pay (overtime, bonuses, absences)
- Approve — Confirm the payroll run
- Generate — Download payslips (nóminas) as PDF
- Export — Generate SEPA XML for bank transfers
IRPF Calculation
TempusWork automatically calculates IRPF based on:
- Annual gross salary
- Personal situation (single, married, dependents)
- Contract type and duration
- Disability status
- Geographic region
You can manually adjust the IRPF percentage in Employee → Payroll → IRPF Override.
Reporting
- Monthly payroll summary — Total cost per department
- Modelo 111 — Quarterly IRPF declaration data
- Modelo 190 — Annual IRPF summary
- TC1/TC2 — Social Security contribution reports