End of temporary contract calculator (Spain)
Calculate the compensation owed in Spain when your fixed-term contract ends.
End of temporary contract calculator (Spain): what it is and how it works
When a temporary contract in Spain ends because the agreed term expires, the employee is entitled to severance of 12 days’ pay for each year of service, or the proportional part if they worked less than a year. This is set out in Article 49.1.c of the Workers’ Statute.
Replacement (formerly interim) and training contracts are excluded. Since the 2022 labour reform, temporary contracts can only be used for production needs or to replace another employee; chaining contracts or breaching the rules can make the employee permanent. This severance is added to the final settlement and is subject to income tax.
How to use it
- Enter the start and end dates of the temporary contract.
- Enter your gross annual salary including extra payments.
- See the severance and the length of service counted.
Severance = annual salary ÷ 365 × 12 × years workedWorked example
A one-year temporary contract with a gross salary of €24,000 a year entitles you to 12 days’ pay: €789.04. For six months, half that.
Frequently asked questions
Which contracts are excluded?
Replacement (interim) contracts and training contracts. It is also not due if the employee resigns before the end.
Is it paid with the final settlement?
Yes. Employers usually include it in the settlement document together with outstanding salary, untaken holiday and extra payments.
Is it taxed?
Yes. Unlike unfair or objective dismissal, severance at the end of a temporary contract is not tax-exempt.
What if I chain temporary contracts?
If you have been on temporary contracts for more than 18 months within 24 months at the same company, you become permanent. Seek advice if this applies to you.