Pay Equity Spain

Basic Summary

Spain requires all companies with 50+ employees to develop and implement an Equality Plan (Plan de Igualdad) that includes a wage audit (auditoría retributiva) to identify and correct gender pay gaps. Royal Decree 902/2020 mandates specific methodologies and timelines for wage equality assessments.

Key Legislation

Organic Law 3/2007 for Effective Equality

Establishes the framework for gender equality in employment, including:

• Right to equal pay for equal work
• Prohibition of gender discrimination
• Requirement for Equality Plans (companies 50+)

Royal Decree 902/2020 on Equal Pay

Effective: April 14, 2021

Specifies requirements for:

• Wage registers (registro retributivo): All employers
• Wage audits (auditoría retributiva): Companies with 50+ employees
• Equality Plans: Mandatory for 50+ employees

Royal Decree 6/2019

Expanded equal pay protections and introduced urgent measures on equality.

Wage Register (Registro Retributivo)

Scope: All Employers

Obligation: Maintain a register showing average pay values, broken down by sex and distributed by:

• Professional classification or groups
• Job categories

Includes:

• Base salary
• Supplements (seniority, shift work, hazard pay, etc.)
• Bonuses and variable pay
• Benefits in kind
• Overtime pay (separately itemized)

Access: Worker representatives and employees have the right to access the register.

Update frequency: Annually

Wage Audit (Auditoría Retributiva)

Scope: Companies with 50+ Employees

The wage audit is an integral part of the Equality Plan and must:

1. Assess the pay structure by job classification and gender
2. Identify potential pay gaps not justified by objective factors
3. Develop an action plan to correct unjustified gaps

Methodology

Step 1: Job Valuation System

Implement a job evaluation system based on:

• Know-how: Knowledge, skills, training required
• Problem-solving: Complexity and autonomy
• Accountability: Impact on results
• Working conditions: Physical, psychological demands

Must be gender-neutral and avoid indirect discrimination.

Step 2: Data Collection

Gather pay data disaggregated by:

• Sex
• Job category/classification
• Seniority
• Full-time/part-time status
• Type of contract (permanent/temporary)

Step 3: Pay Gap Analysis

Calculate:

• Mean pay by job category and sex
• Median pay by job category and sex
• Percentage differences between men and women

Step 4: Justification Review

Evaluate whether gaps are justified by:

• Objective, transparent criteria
• Business necessity
• Proportionality

Non-justifiable: Stereotypes, indirect discrimination, historical practices.

Step 5: Corrective Measures

Develop Action Plan with:

• Specific measures to eliminate unjustified gaps
• Timeline for implementation
• Responsible parties
• Monitoring and review process

Wage Audit Timeline

Frequency: Wage audit must be updated and included in each Equality Plan review cycle (typically every 4 years, or sooner if significant changes).

Equality Plan (Plan de Igualdad)

Scope: Companies with 50+ Employees

Required components:

1. Diagnosis: Analysis of gender equality situation across all employment areas
2. Objectives: Measurable equality goals
3. Measures: Specific actions to achieve objectives
4. Indicators: Metrics to track progress
5. Monitoring: Committee to oversee implementation
6. Wage Audit: Integrated analysis of pay equity

Negotiation with Worker Representatives

Equality Plans must be negotiated with:

• Trade union representatives, or
• Worker delegates (if no union presence)

Plans must be registered with the Labour Authority.

Priority Areas

Equality Plans typically address:

• Recruitment and selection
• Job classification
• Training and promotion
• Pay equity
• Work-life balance
• Prevention of harassment

Pay Transparency and Information Rights

Employee Rights

Employees and their representatives have the right to:

• Access the wage register
• Information on average pay by sex and job category
• Request information on their position's classification and pay criteria

Pay Secrecy Clauses

Prohibited: Employers cannot include clauses in contracts preventing employees from disclosing their salary information.

Enforcement and Penalties

Labour and Social Security Inspectorate (ITSS)

• Monitors compliance with wage register, audits, and Equality Plans
• Can conduct inspections and request documentation
• Issues infringement notices

Penalties (Fines)

Serious infractions (failure to maintain wage register, conduct audit, or implement Equality Plan):

• €626 to €6,250

Very serious infractions (discrimination in pay, repeated non-compliance):

• €6,251 to €187,515

Additional consequences:

• Loss of public subsidies or grants
• Exclusion from public procurement for up to 2 years

Employee Claims

Employees can file claims for:

• Unequal pay
• Discrimination

Forum: Labour courts (Juzgados de lo Social)

Remedies: Back pay, salary adjustments, damages, reinstatement.

EU Pay Transparency Directive (2023/970)

Spain must transpose by June 7, 2026, which may introduce:

• Pay range disclosure in job advertisements
• Pay history ban
• Enhanced reporting for 100+ employees (phased)
• Joint pay assessments if ≥5% unexplained gap

Best Practices

Conducting Wage Audit

1. Use recognized job evaluation system: Hay, Mercer, or custom gender-neutral system
2. Disaggregate data: Ensure sufficient granularity to identify gaps
3. Document justifications: Maintain evidence for any legitimate pay differences
4. Engage representatives: Collaborate with worker delegates/unions throughout
5. Remediate proactively: Don't wait for enforcement; correct gaps promptly

Maintaining Wage Register

• Automate extraction from payroll systems
• Update annually (or more frequently for large organizations)
• Make accessible to representatives and employees
• Include clear definitions and categories

Equality Plan Development

• Start early (process takes 6-12 months)
• Conduct thorough diagnosis
• Set SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound)
• Establish monitoring committee with union/worker participation
• Register plan with Labour Authority within required timeframe

Resources

• Ministry of Equality (Ministerio de Igualdad): https://www.igualdad.gob.es
• Labour and Social Security Inspectorate (ITSS): https://www.mites.gob.es/ITSS/
• Institute for Women (Instituto de las Mujeres): https://www.inmujeres.gob.es
• Royal Decree 902/2020: https://www.boe.es
• Royal Decree 6/2019: https://www.boe.es

Compliance Calendar

Date	Action
Ongoing	Maintain wage register; update annually
Every 4 years (or earlier)	Conduct wage audit and update Equality Plan
Upon changes	Update plans if significant workforce changes occur
June 7, 2026	EU Directive transposition deadline

---

Disclaimer: This guide is for informational purposes only and does not constitute legal advice.