Spain Objective Dismissal Severance: 20 Days per Year

Spain objective dismissal calculator: what it is and how it works

An objective dismissal in Spain is based on reasons unrelated to the employee’s conduct: economic (losses or falling revenue), technical, organisational or production reasons, supervening incapacity or failure to adapt to technical changes. A collective dismissal (ERE) applies when those reasons affect a minimum number of employees.

In both cases legal severance is 20 days’ pay per year of service, prorated by months for periods under a year, up to 12 months’ pay. The employer must give 15 days’ written notice (or pay in lieu) and make the severance available when handing over the dismissal letter. If a court rules the dismissal unfair, severance rises to 33 days per year.

How to use it

Enter the contract start date and the dismissal date.
Enter your gross annual salary including extra payments.
See the severance, your length of service and whether the cap applies.

FormulaSeverance = annual salary ÷ 365 × 20 × years of service (maximum 360 days)

Worked example

For a contract from 1/3/2019 to 31/10/2026 and €30,000 gross a year, you are owed 153.33 days’ pay: €12,602.74. If ruled unfair, it would be €20,794.52.

Frequently asked questions

What notice applies to objective dismissal?

The employer must give 15 days’ notice. Otherwise it must pay those 15 days’ salary on top of the severance.

Can I claim unemployment benefit?

Yes. Objective dismissal is a legal situation of unemployment, and you can claim benefit if you have contributed for at least 360 days in the last six years.

Is objective dismissal severance taxed?

It is exempt from income tax for the legal amount of 20 days per year up to 12 months’ pay, and up to €180,000.

Can I challenge an objective dismissal?

Yes, within 20 working days. If the court finds insufficient grounds, it will rule the dismissal unfair and severance will be 33 days per year.