12 or 14 payments a year in Spain? Which is better and how it affects your pay
One of the most common questions when signing a contract in Spain is whether to be paid in 12 or 14 instalments (pagas). The short answer: you earn exactly the same per year. What changes is how the money is spread out.
How each option works
- 14 payments: 12 monthly payments plus two extra payments, usually in June or July and in December. You get less each month, but receive two extra payments.
- 12 payments: the extras are spread across the 12 months. You get more each month and there are no extra payments.
With a gross salary of €30,000, in 14 payments you would take home about €1,629 a month plus two extras of about €1,791; in 12 payments you would take home about €1,927 every month.
Does it change IRPF or Social Security?
No. Withholding is calculated on your annual salary, so the percentage is the same. And Social Security is always contributed with the extras spread across the year, regardless of how you are paid.
Which one suits me?
14 payments suits you if you find it hard to save: the extras work as forced savings for holidays, gifts or annual expenses such as car insurance.
12 payments suits you if you prefer to manage the money yourself, have high fixed costs (mortgage, rent) or want to save or invest month by month.
Details to bear in mind
- If you leave a job mid-year with 14 payments, your final settlement will include the proportional part of the extras you have accrued.
- Collective agreements can set the number of payments and when they are paid.
- Unemployment benefit and other benefits are calculated on the contribution base, which is the same in both cases.
Compare both options in the net salary calculator by changing the number of payments.