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WORKING IN SPAIN

Spanish government to fight unpaid overtime with new algorithm

Spain's vice-president and labour minister Yolanda Díaz has announced a new measure to stop work hours from going unpaid.

Published: 30 May 2022 16:48 CEST
Spanish government to fight unpaid overtime with new algorithm
The Spanish government wants to tackle unpaid overtime, which especially affects the hospitality and construction industries. Photo by Cesar Manso/AFP

In the government’s latest move to tackle unpaid overtime, Spain’s second vice-president and labour minister announced on Friday that “a new algorithm to control overtime from the Labour Inspection” will be created “in the next few days”.

According to the latest poll Encuesta de Población Activa (EPA), Spaniards worked 27 million extra hours per month or 6.6 million a week in the first quarter of 2022. Forty-four per cent of those overtime hours are not paid at all.

“This is unacceptable”, said Díaz, who was attending a forum to discuss labour. While she added that the figures were at their lowest since 2011, she said “I will not be content with this.”

In order to reduce this “excessive” number of unpaid hours, Díaz said the government would use artificial intelligence, but didn’t give further details on the algorithm, which is expected to be unveiled in the coming days.

READ ALSO: Why working overtime in Spain isn’t worth it

Spain’s Worker Regulations state that extra work hours are voluntary except in the case of an emergency at work such as an accident or crisis. However, many Spanish employees feel they can’t oppose overtime through fear they’ll be fired.

In 2019, the Spanish government introduced new “clocking in” measures forcing companies to record the working hours of employees. The law was designed to “help correct the situation of precariousness, low salaries and poverty that affects many workers who suffer abuse in their working day,” according to the working of the decree.

The measure also aimed to uncover excess hours worked by those in the hospitality and construction sector, which is where exploitation is mostly concentrated.

READ ALSO:EXPLAINED: What you need to know about Spain’s new clocking-in laws for workers

At a forum on labour law in Valencia on Friday, Díaz also spoke about the gender pay gap in this issue. While men make up the majority of people working overtime, women make up a majority of those who are not paid for this extra work.

She also called for a redistribution of worker’s time in order to tackle the low productivity, which in Spain is the lowest in the European Union. 

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WORKING IN SPAIN

What’s the law on having two jobs in Spain?

With the current cost of living crisis, working more than one job is becoming more and more common, but what are the rules on working multiple contracted jobs in Spain and the tax implications of this?

Published: 25 June 2024 13:24 CEST
What's the law on having two jobs in Spain?

Often it’s necessary to have more than one job at a time, particularly if they don’t pay well and you’re struggling to make ends meet.

In fact, historically that is part of the reason why establishments stay open so late and why siestas were so common – because people would have one job in the morning and then go home for a rest before starting their second.

This is still commonplace today and is in fact becoming more and more popular, with the rise in the cost of living, driving an increasing number of people to take up a second job.

Whatever your reasons for having two jobs or more – to save up more money or gain extra experience and work your way up, there are some financial implications you should be aware of.

What does the law say?

Currently in Spain, there is no restriction that prevents a person from having a second job, with two contracts in two different companies, for 80 hours a week.

According to data from the first quarter of this year from the Active Population Survey (EPA) prepared by the National Institute of Statistics (INE), the number of people with a second job in Spain stands at 591,300, although according to affiliation data of Social Security, some 800,000 people have more than one position.

This trend has been seen in each quarter of the EPA since 2022 and, right now, is close to a historic number.

Categories you should be aware of

There are two types of categories when you work in multiple jobs in Spain – these are pluriempleo and pluriactividad. Pluriempleo literally means multiple employment. This is understood as a person who works as an employee in two or more companies under the same Social Security regime.

In this way, it differs from pluriactividad or multiple activities, which is when people work for others and have their own business at the same time or their second job is under a different social security regime.

For example, if you work as a hotel receptionist in the morning and then in a restaurant at night, these positions are considered to be part of the same regime, but if you work in a hotel in the morning and then as a nurse in a hospital at night, these are two different careers and therefore social security regimes.

If you’re self-employed as well as having a contract job, this is a slightly different situation. To find out more, read our guide below. 

READ ALSO – Self-employed in Spain: What are the tax rules if you do two or more jobs?

What are the tax and social security implications?

If you have two separate jobs, you are required by law to report your situation to Social Security, and to each of the companies you’re employed by.

When it comes to the Tax Agency, it’s important to note that you are obliged to submit your yearly Income Tax return (Renta), when you are paid by more than one employer and your income exceeds €22,000 per year.

READ ALSO – EXPLAINED: The key changes to Spain’s 2023/2024 annual tax return

In 2024, the maximum social security contribution base for employees has been set at €4,720.50 per month. This means, that regardless of whether your income from two positions exceeds this amount, the social security base will not be more than this.

The amount of IRPF (Personal Income Tax) must also be taken into account. If you are combining two contracts, it’s important to calculate the withholding tax.

This is because companies calculate personal income tax based on your annual compensation expectations. They do not take into account the existence of another job, so they apply the discount depending on what they are paying you only.

This means that they will keep less than what they should and when you’re filling out your Renta yearly income tax return, you will most likely have to pay the extra to make up the difference. 

In this case, you should request that both companies calculate personal income tax according to your earnings, so that you can get a good idea of the amount you have to pay working two positions.

You may also consider hiring a gestor or accountant to file your yearly tax return for you if you have a particularly complicated situation and work three or more jobs for example. 

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