Employee Benefits, Global
Spotlight on Spain: A guide to implementing employee benefits technology
04.03.25
Spain sits towards the complex end of what we call the simple to complex scale. At Benifex, we use a scale that identifies a location’s benefits requirements, based on the expectations and complexity of that local benefits market and employee populations. For example, the UK or USA would usually be on the complex end of the scale, with countries such as those in the Nordics closer to the simple end.
Typically in Spain, we see a mix of core and flexible benefits. In the context of benefits globally, when talking about ‘flexible benefits’, this refers to benefits with some choice and the ability to upgrade cover level on health cover or increased pension contributions – as opposed to flexible benefits in more complex countries, like the UK, which refers to a wide range of optional benefits.
Core benefits
Pension
Around 60% of multinational and local leading employers provide supplementary retirement benefits. Benefits are provided through an occupational pension plan and employer contributions equal 4% to 8% of the employees’ total pensionable salary. Employees do not typically contribute; where required, employees contribute from one third to one half of the total contributions.
Health cover (with selection options for employees)
Around 85% of multinational and local leading employers provide supplementary medical benefits. Benefits are provided through a private medical insurance (PMI) plan and employee contribution may be required. Employers typically finance 100% of the group PMI plan premium. Premiums attributed to a spouse and children are typically only partially covered by the employer.
Life and accident insurance
Around 80% of multinational and local leading employers provide supplementary death in service benefits, and benefits are provided through a Group Life (GL) insurance plan. The sum insured is typically equal to two times the employee’s annual base salary, and up to four times annual base salary for management or employees in the technology industry. Some plans increase the sum insured, dependent upon the number of children.
A widow(er)’s pension is equal to 50% to 60% of the deceased’s projected retirement pension, while an orphan’s pension is equal to 10% to 20% of the deceased’s projected retirement pension per child (up to a maximum of four children). The total survivors’ pensions are equal to 100% of the deceased’s projected retirement pension.
Disability cover
The majority of multinational and large companies provide supplementary long-term disability benefits. This is usually incorporated into the Group Life Plan. It is between two and four times the employees’ annual salary and is provided as a lump sum payout. If there is a supplementary pension plan provided by the company, this will include long term disability benefits also.
Company Car
Around 80% of employers offer a company car to those employees who need it or have a significant role in the company. Company cars are leased by the employers rather than purchased, usually with the replacement of cars every four years. The corresponding values are typically EUR 25,000 and upwards for managers, or EUR 35,000 and upwards for senior executives.
Bonuses
Around 90% of multinational and local leading employers offer an annual performance bonus or incentive for senior executives in the region of 20% of the employees’ salary, while around 80% offer this to middle managers in the region of 15% of the employees’ salary.
Other benefits
To provide a competitive offering, many multinational and local leading employers provide the following benefits:
Lunch subsidies and canteen or lunch vouchers
These are popular benefits with around 70% of employers providing these for all employees. Lunch vouchers are the most common and are tax exempt up to EUR 11 per day.
Family-related allowances
Around 80% of employers provide family-related allowances for senior executives, middle managers, and clerical and administrative employees in the form of a childcare allowance.
Membership of professional organizations
Senior executives are offered membership of professional organizations by around 20% of leading employers.
Employee loans
Some employers provide employee loans for senior executives, middle managers, clerical and administrative employees to help cover costs and bolster their financial wellbeing.
Mobile phones
These are a common perquisite for senior executives and middle managers, usually without restrictions on usage.
Employee discount
A discount on employer products is a common perquisite for senior executives, middle managers, clerical and administrative employees.
Transport/commuter allowance
The commuter allowance requires the company to reimburse a percentage of the transport cost for their commute to work to the employee.
Childcare vouchers
These vouchers, also known locally as Guarderia tickets, are very common in Spain. Due to being tax efficient, they’re popular among employers and offered by most multinational or larger organizations.
Key considerations for rolling out global benefits in Spain
1. Balance of core and flexible benefits. While core benefits such as pensions, private health insurance, and life and accident cover are widely offered, Spanish benefit design also includes elements of flexibility. Although these benefits are not as flexible as other countries, this hybrid model means benefit platforms must support both read-only and transactional capabilities, allowing employees to make real choices without being overwhelmed.
2. Localized experience is critical. Delivering benefits in an employee’s native language is essential in Spain. Employees need to feel confident navigating their health plan options, pension details and tax-efficient allowances (like lunch or childcare vouchers). Platforms like OneHub provide full localization – from FAQs to enrolment flows – ensuring employees fully understand their entitlements and make informed benefit selections.
3. Managing complexity in health and pension benefits. Spain’s supplementary health insurance and occupational pensions are widely adopted, but can be administratively complex. Working closely with local brokers or administration partners can help streamline processes. OneHub’s integrated approach enables employers to host and manage healthcare, pension, and voluntary benefits in a single platform, reducing admin and simplifying oversight. For example, insurers require employees and family members to submit DNI numbers, which is their National Identity Number, and OneHub can easily collect this information.
4. Supporting popular local benefits. Spanish employees value practical, everyday benefits that enhance financial wellbeing and work-life balance. These benefits are often transactional in nature and benefit from smart data integrations with local providers – another area where a global platform like OneHub can ease delivery.
5 Centralizing and Simplifying the Experience. For many employers in Spain, rolling out a platform like OneHub is the first time benefits information is centralized. This not only improves the employee experience, but reduces admin by consolidating vendors and benefit processes, allows for real-time updates and automation, and enables employees to customize their benefits in one place, with transparency.
We’d love to talk to you and answer any of your questions about hosting benefits for your Spanish employees through OneHub, just get in touch!
Paul Andrews
Paul joined Benifex from Mercer in 2019 with a wealth of international benefits experience, having worked with a large number of high-profile, multinational clients to review their approach to global talent and reward. He leads Benifex’s global benefits delivery team and he’s doing an excellent job of it, if we may say so ourselves. He is skilled in international risk assessment and management, legislative compliance, trend research, cross-border claims, and customer relationship management. AND, he can speak fluent French, mais oui!
04.03.25
