Equality Hits Spanish Pay Packets


Employers please take note that on 13 October 2020, Labour Law 902/2020 was approved resulting in equal pay for women and men coming into effect on 14 April 2021.

This new labour law obliges all employers to keep a register of salaries, showing the average value of salaries, all salary bonuses and extra salary payments for all employees. This is not a joke, although I agree, it does sound like one but believe me it does get better, from a joke point of view that is.

The register must also state the gender of each employee working in the same job position, yes I know, I know. So, we interpret this as; you have five employees all working as bookkeepers, the employer must list the number of men, women and other (it is 2021) together with the annual salary of each bookkeeper.

The aim of this law is to ensure that equality of pay and position is being observed.

Even though the law comes into effect on 14 April 2021. A register has to be prepared for 2020 and kept on file. If you have the pleasure of a visit from a labour inspector, this report will be requested, so please ensure you do get this dealt with for last year.

You will not be surprised to learn that labour inspectors have the authority to impose fines on employers for non compliance. So if you are an employer, please make one of your staff responsible for preparing the report for 2020 and getting the report for 2021 in place and kept up to date.

If a labour inspector decides the register shows that equality of pay and position is not being adhered to, she or he, has the right to impose fines on the employer.

Apologies for being the bearer of yet more ridiculous legislation, this does not mean I am not in favour of equality in the work place, of course I am, as a business woman, I am all too aware of the wrongs that can be carried out by certain dubious employers and partners. However, a register, really? it´s nonsense, bureaucracy for the sake of it, is my opinion.

Anyway, it’s gotta be done, so if you need any help with this call the office.

Thank you for reading and stay safe and healthy.

Spence Clarke specialises in the provision of Spanish tax, accounts, law and labour services, mainly to foreigners with interests in Spain. Our cross-border knowledge helps clients adapt to the Spanish system with the minimum of doubt and disruption. If you have any questions about this article or any other matter contact us, with no obligation, to see how we can help you.