In Spain, the salary structure has a unique feature that often surprises professionals from other countries: the possibility of receiving 12 or 14 salary payments per year. While
both options ultimately amount to the same annual gross salary, the way it’s distributed can have significant implications for both employees and employers. So, what’s the difference, and which one is better?
Understanding the Basics: 12 vs 14 Payments
In a 12-payment structure, the employee receives their entire annual salary divided into 12 equal monthly payments. In contrast, a 14-payment structure divides the same annual amount into 14 parts, with two additional payments known as “extra pay” or “extraordinary payments” typically given in June (summer extra payment) and December (Christmas extra payment).
Legal Framework
Under Spanish labor law, employees are entitled to two extra payments per year unless otherwise agreed in the employment contract or collective agreement. However, many
companies opt to prorate these extras, effectively switching to a 12-payment structure by integrating the extra pays into the monthly salary.
Pros and Cons for Employees
14 Payments:
- Psychological Benefit: Receiving an extra payment in summer and at the end of the year can feel like a “bonus”, helping employees manage holiday and seasonal expenses.
- Savings Aid: It acts as a form of forced savings, which some employees appreciate.
- Traditional and Expected: Many long-term employees are used to this format, especially in public administration.
12 Payments:
- Higher Monthly Income: Employees receive more money each month, which can help with ongoing expenses or loans.
- Simplified Budgeting: A consistent monthly salary can make financial planning easier.
- Popular Among Younger Workers: Many prefer having access to the full amount throughout the year.
Pros and Cons for Companies
14 Payments:
- Alignment with Collective Agreements: In some sectors, it is required or customary, helping maintain compliance and employee satisfaction.
12 Payments:
- Administrative Simplicity: Fewer payroll adjustments and less complexity in processing.
- More Attractive Offers: Higher monthly salaries can be more appealing in job offers, especially when targeting international talent unfamiliar with the 14-payment concept.
Sector and Industry Trends
- Public Sector: Typically maintains the 14-payment structure, in line with tradition and collective agreements.
- Private Sector: Increasingly leans towards 12 payments, especially in startups, tech companies, and international firms operating in Spain.
What Should Employees Consider?
When negotiating a salary, employees should ask whether the gross annual salary will be paid in 12 or 14 installments. It’s essential to understand the net monthly impact and
avoid confusion over the total amount.
For example, a gross annual salary of €28,000:
- In 14 payments: ~€2,000 gross per month (12 regular + 2 extras)
- In 12 payments: ~€2,333 gross per month
Same annual total, different monthly experience.
Final Thoughts: What’s Better?
There’s no one-size-fits-all answer. For employees who appreciate seasonal income boosts or struggle with saving, 14 payments might be preferable. For those who value
consistent monthly income, 12 payments may work better.
For companies, the choice depends on their internal payroll systems, sector norms, and recruitment strategies. However, transparency is key—clearly communicating how
salaries are structured helps build trust and avoid misunderstandings.
At Rosclar, we help businesses navigate the complexities of payroll in Spain with clarity and confidence. Whether you opt for 12 or 14 payments, we ensure your payroll
is compliant, on time, and error-free—so you can focus on what really matters: your people.
Need help optimizing your payroll structure in Spain? Contact Rosclar today and discover how we can support your business growth.
