Spain severance pay calculator
Work out the severance you are owed in Spain depending on the type of dismissal, your length of service and your salary.
Spain severance pay calculator: what it is and how it works
Severance pay (indemnización por despido) is the compensation a Spanish employer must pay when ending a contract in certain cases. Under the Workers’ Statute it depends on the reason: 33 days’ pay per year worked for unfair dismissal (up to 24 months’ pay), 20 days per year for objective or collective dismissal (up to 12 months’ pay) and 12 days per year when a temporary contract ends. A disciplinary dismissal ruled fair carries no severance.
For employees who started before 12 February 2012, unfair dismissal is calculated in two parts: 45 days per year up to that date and 33 days afterwards. Periods shorter than a year are prorated by months, counting part of a month as a full month. The daily salary is the annual salary, including extra payments, divided by 365.
How to use it
- Choose the type of dismissal or termination.
- Enter the contract start and end dates.
- Enter your gross annual salary including extra payments and read the severance.
Severance = daily salary × days per year × years of service (subject to legal caps)Worked example
For a contract from 1/3/2019 to 31/10/2026 and €30,000 gross a year, unfair dismissal means 253 days’ pay: €20,794.52. If the dismissal is objective, 153.33 days: €12,602.74.
Frequently asked questions
How many days per year am I entitled to?
For unfair dismissal, 33 days per year (45 for service before February 2012); for objective or collective dismissal, 20 days; and at the end of a temporary contract, 12 days.
Which salary is used?
The gross salary you earned at the time of dismissal, including the pro-rata share of extra payments and regular pay supplements.
Is severance pay taxed?
Mandatory severance for unfair or objective dismissal is exempt from income tax up to €180,000. Amounts above the legal minimum and severance at the end of a temporary contract are taxable.
How long do I have to challenge a dismissal?
20 working days from the dismissal to file for conciliation. If you disagree with the reason or the amount, seek advice from an employment lawyer or trade union promptly.