Calculate your Spain severance pay
| Gross annual salary (incl. prorated pagas extra) | €36,000.00 |
| Daily salary (annual / 365) | €98.63 |
| Years of service counted | 6 |
| Severance days | 120 days (No cap applied) |
| Severance amount | €11,835.62 |
| Notice pay (15 days, if notice was not given) | €1,479.45 |
| Finiquito (final settlement) | €0.00 |
| Total termination package (gross) | €13,315.07 |
All amounts are in euros (EUR) and are gross, before tax. Daily salary is always gross annual salary / 365, even in leap years. A collective agreement or individual agreement may pay more than the statutory minimum shown here.
What is severance pay in Spain (indemnización)?
Severance pay in Spain, the indemnización por despido, is compensation for the dismissal itself. It is calculated as a number of days of gross daily salary per year of service, and the number of days depends on the type of dismissal. It is separate from the finiquito, the final settlement of amounts already earned: outstanding salary, unused vacation and prorated pagas extra. The finiquito is always owed, even on resignation; severance is owed only for some dismissal types.
Confusing the two is the most common error in English-language Spain severance guides. A worker who resigns gets a finiquito, not severance. A worker fairly dismissed for disciplinary reasons gets a finiquito, not severance. A worker whose dismissal is null gets reinstatement, not a money amount. This calculator keeps the two lines apart in every mode.
Formula, daily salary, and the 14-pay trap
Severance = days per year x years of service x daily salary, subject to the cap for the dismissal type. Partial years are prorated by months: full calendar months plus remaining days as a fraction of a 30-day month.
Daily salary = gross annual salary including prorated pagas extra, divided by 365 days, always 365, even in leap years. Gross means before tax and Social Security; never use net pay, and never use the Social Security contribution base, which is a different figure.
What counts in the annual salary: base salary plus regular bonuses, commissions, overtime and salary in kind that form part of the remuneration. What does not count: extra-salary items, such as compensation for remote-work costs. The 14-pay trap: a worker on EUR 1,800 a month with 14 payments earns EUR 25,200 a year, not EUR 21,600. Entering a 14-payment monthly salary as if it were 12 payments understates the annual salary by two months and the severance by the same proportion. The tool builds the annual total from your monthly pay and your payments per year, so the trap is closed.
Objective dismissal: 20 days per year, cap 12 months
Objective dismissal (Articles 52 to 53 of the Workers' Statute) covers economic, technical, organisational or production causes, and a few personal grounds. It pays 20 days per year of service, prorated by months, capped at 12 months of pay (365 days). It also requires 15 calendar days' written notice, or 15 days' pay in lieu, which the tool shows as its own line. A collective agreement may set a longer notice period; check yours.
Unfair dismissal: 33 days per year, cap 24 months
Unfair dismissal (Article 56) pays 33 days per year of service, prorated by months, capped at 24 months of pay (720 days). This applies to contracts from 12 February 2012. If a court declares the dismissal unfair, the employer chooses between reinstatement with back pay and the compensation, except for employee representatives, where the employee chooses. The tool shows the objective-dismissal comparison alongside the unfair result, so you can see the jump: at the same salary and service, 33 days is 65% more than 20 days.
The pre-2012 transitional rule and the 720-day cap
For contracts that started before 12 February 2012, the calculation splits: 45 days per year for service before 12 February 2012, and 33 days per year for service from 12 February 2012. The combined result is capped at 720 days, with one crucial exception: if the pre-2012 part alone already exceeds 720 days, that pre-2012 amount becomes the cap, subject to an absolute ceiling of 42 months (1,260 days). The tool splits the dates itself from your contract start and termination dates; you do not need to work out the split by hand.
State the rule before the examples, because it decides both of the mixed-service examples below: Example 3 stays under the cap, and Example 4 is decided by the pre-2012-amount rule.
Fixed-term contract end: 12 days per year
When a fixed-term contract ends, Article 49(1)(c) of the Workers' Statute provides 12 days per year of service, with no specific cap in the general rule. Training contracts and substitution contracts are excluded from this scope note; if your contract is one of those, the 12-day rule may not apply. The tool prices the general rule and flags the exclusion.
Fair disciplinary dismissal (EUR 0) and null dismissal (no money amount)
A fair disciplinary dismissal (Article 54) pays EUR 0 severance: the finiquito only. If a court later finds the dismissal unfair, it becomes the 33-day (or transitional) calculation, so keep the evidence and the 20-working-day challenge deadline in mind. A null dismissal (for example discrimination or a fundamental-rights breach) is not a money amount at all: it means reinstatement plus processing wages (salarios de tramitación). The tool refuses to price it, because putting a euro figure on reinstatement would be wrong.
The finiquito, calculated
The finiquito is always owed, including on resignation, and the tool calculates it in every mode: days worked in the final month that are still unpaid, plus unused vacation days (30 calendar days per year), plus pagas extra accrued but unpaid, plus any other pending items you enter. For a 14-payment salary, the accrued extra payment is one extra monthly payment x months since the last extra payment / 12.
The finiquito is taxed like ordinary pay, with Social Security and IRPF withholding like a payslip; it is not covered by the severance exemption. If you disagree with the finiquito, sign it as "no conforme" (not in agreement) rather than "conforme", and get advice before signing anything. Worker representatives have additional protections; if you are one, do not rely on the general rules alone.
Notice pay and the 15-day rule
Objective dismissal requires 15 calendar days' written notice, or 15 days' pay in lieu, shown as its own line in the tool. Disciplinary dismissal has no statutory notice period. Collective agreements may set longer notice, so check yours before assuming 15 days is the whole story.
Tax: the EUR 180,000 exemption and its conditions
Compensation for dismissal is exempt from IRPF up to the mandatory Workers' Statute amount, and the exempt amount shall not exceed EUR 180,000 (Article 7(e) of Law 35/2006, Agencia Tributaria IRPF manual). Any excess is taxed as employment income, subject to the possible reduction for income generated over more than two years. Only the mandatory statutory amount is exempt; amounts set by agreement, pact or contract are not. For dismissals after 7 July 2012, the exemption requires recognition in a conciliation act or court decision; up to 7 July 2012, employer acknowledgement at or before conciliation sufficed. Historical footnote: the EUR 180,000 limit does not apply to dismissals before 1 August 2014 (plus a collective-dismissal consultation exception on the Tax Agency page). That is history, not a 2026 calculation rule. The finiquito is not exempt: it is taxed as ordinary employment income.
Can a judge award more than 33 days? The 2025 Supreme Court position
No, for ordinary unfair dismissal. The Supreme Court, Social Chamber, in plenary session on 16 July 2025, held that severance for unfair dismissal cannot be increased by the courts beyond Article 56 (33 days per year, with the caps above). There is no "additional compensation" field in this tool, because no such top-up exists for ordinary cases. The exceptions are fundamental-rights violations and cases expressly provided by law. Reform is a matter for the legislator; the Ministry of Labour negotiation noted by employment lawyers has not changed the formula. No STS number is cited here, because published sources disagree on it; the position is stated descriptively and dated, which is what a worker needs to know.
Collective dismissal (ERE): thresholds and consultation
A collective dismissal (ERE) is defined by thresholds in a 90-day period: 10 workers in companies with fewer than 100 employees; 10% of the workforce in companies with 100 to 300 employees; 30 workers in companies with 300 or more employees. Consultation lasts 1 month, or 15 days for smaller companies. The statutory severance in a collective dismissal is the objective 20 days per year, capped at 12 months, but negotiated ERE agreements commonly pay more. If your dismissal is part of an ERE, the agreement, not just the statutory minimum, decides your amount.
What to do after a dismissal
You have 20 working days to challenge a dismissal. Conciliation comes first, through the Mediation, Arbitration and Conciliation Service (SMAC), before a court claim. Do not sign "conforme" on a disputed finiquito; sign "no conforme" and get advice. Keep the dismissal letter, payslips, vacation record and any notice document. If the dismissal is null, for example discrimination, the remedy is reinstatement, and the deadline still runs, so do not wait.
Worked examples
Daily salary is always gross annual salary / 365, even in leap years. Amounts are in euros and are gross, before tax.
Example 1: objective dismissal, 6 years, EUR 36,000 gross annual
Daily salary: 36,000 / 365 = EUR 98.63. Days: 20 x 6 = 120, below the 365-day cap. Severance: 120 x 98.63 = EUR 11,835.62. Plus 15 days' notice (or pay in lieu): 15 x 98.63 = EUR 1,479.45, plus the finiquito on top. Total termination package before any finiquito: EUR 13,315.07. This is the tool's default example.
Example 2: unfair dismissal, post-2012 contract, 7 years, EUR 42,000 gross annual
Daily salary: 42,000 / 365 = EUR 115.07. Days: 33 x 7 = 231, below the 720-day cap. Severance: 231 x 115.07 = EUR 26,580.82. Comparison: if it had been an objective dismissal instead, 20 x 7 = 140 days = EUR 16,109.59. The objective-to-unfair jump is 65% (33 / 20 = 1.65).
Example 3: mixed pre- and post-2012 service, below the cap
8 years before 12 February 2012 and 5 years after, EUR 42,000 gross annual. Daily salary: EUR 115.07. Pre-2012 part: 45 x 8 = 360 days. Post-2012 part: 33 x 5 = 165 days. Total: 525 days. The pre-2012 part (360) does not exceed 720, so the cap is 720 days and does not bite. Severance: 525 x 115.07 = EUR 60,410.96.
Example 4: mixed pre- and post-2012 service, above the cap (the example no rival shows)
17 years before 12 February 2012 and 10 years after, EUR 36,500 gross annual. Daily salary: EUR 100.00. Pre-2012 part: 45 x 17 = 765 days. Post-2012 part: 33 x 10 = 330 days. Raw total: 1,095 days. Because the pre-2012 part alone (765) already exceeds 720, the pre-2012 amount becomes the cap: total limited to 765 days (the 42-month ceiling of 1,260 days is not reached). Severance: 765 x 100.00 = EUR 76,500.00, not EUR 109,500. This is the cap rule most calculators get wrong, and it is worth EUR 33,000 to this worker.
Finiquito illustration (tool's own annual / 365 rule)
Monthly EUR 1,800, 14 payments: annual EUR 25,200, daily EUR 69.04. 15 unpaid days worked = EUR 1,035.62. 10 unused vacation days = EUR 690.41. One extra payment accrued 9.5 / 12 = EUR 1,425.00. Finiquito total = EUR 3,151.03 (gross, before Social Security and IRPF withholding). Note: a published Spanish example shows EUR 3,273 for similar inputs, but it uses a monthly / 30 daily rate of EUR 60; the figures here follow the tool's annual / 365 rule, which is the rule the Spanish tool uses and the rule this page states.
What this calculator does NOT cover
Domestic workers' special regime. Discontinuous fixed-term seniority quirks. Senior executives' different tax limits (for example, unfair dismissal at 20 days / 12 months for the special senior-management relationship). Collective-agreement improvements above the statutory minimum. Processing wages (salarios de tramitación) for null dismissal. Unemployment benefit. In each case, get advice: the statutory minimum shown here is a floor, not a ceiling, where an agreement applies.
Frequently asked questions about Spain severance pay
How is severance pay calculated in Spain?
Daily gross salary (gross annual salary including prorated pagas extra, divided by 365) times the days per year for the dismissal type, subject to the cap. Partial years are prorated by months.
How many days per year is unfair dismissal in Spain, 33 or 45?
33 days per year for contracts from 12 February 2012. For earlier contracts: 45 days per year for service before 12 February 2012 and 33 days per year after, with the 720-day combined cap (and the pre-2012-amount rule explained below).
What is the difference between severance pay (indemnización) and the finiquito?
Severance is compensation for the dismissal itself and is only owed for some dismissal types; the finiquito is the final settlement of amounts already earned and is always owed, even on resignation.
How much notice must my employer give me in Spain?
15 calendar days for objective dismissal, or pay in lieu; no statutory notice period for disciplinary dismissal; collective agreements may set longer notice, so check yours.
Is severance pay tax-free in Spain?
The mandatory statutory amount is exempt from IRPF up to EUR 180,000; anything above the mandatory amount, including negotiated top-ups, is taxed as employment income; the finiquito is taxed like ordinary pay. For dismissals after 7 July 2012 the exemption requires recognition in a conciliation act or court decision.
Do I get severance pay if I resign?
No statutory severance on resignation; you still get the finiquito: outstanding salary, unused vacation, prorated pagas extra.
What happens if my dismissal is declared unfair: do I get my job back or money?
The employer chooses, except for employee representatives, where the employee chooses: reinstatement with back pay, or the 33-day or transitional compensation. If the dismissal is null, for example discrimination or a fundamental-rights breach, it is reinstatement, not a money amount.
Can a judge award me more than 33 days per year if the statutory amount feels too low?
No, for ordinary unfair dismissal: the Supreme Court confirmed in July 2025 that courts cannot top up the Article 56 amount; only fundamental-rights cases and cases expressly provided by law are exceptions. Any change must come from the legislator.
Important: This calculator gives a simplified estimate of Spain severance pay under the general rules of the Workers' Statute. It is for standard employment at the statutory minimum and does not cover domestic workers' special regime, discontinuous fixed-term seniority quirks, senior executives' different tax limits, collective-agreement improvements, processing wages for null dismissal, or unemployment benefit. The result is gross, before tax, and is not legal advice: for your exact settlement, check your contract and collective agreement, or ask a labour lawyer or the Mediation, Arbitration and Conciliation Service. Check your result against the official CGPJ calculator, whose result is not binding.
Official sources on Spain severance pay
The rules above follow the Workers' Statute (Estatuto de los Trabajadores), Royal Legislative Decree 2/2015 of 23 October (BOE-A-2015-11430), key articles: Article 49(1)(c) (fixed-term contract end, 12 days), Articles 52 to 53 (objective dismissal, 20 days, 15 days' notice), Article 54 (disciplinary dismissal), Article 56 (unfair dismissal, 33 days, 24 months), and the transitional provision on the 45/33-day split. Tax follows the Agencia Tributaria IRPF manual, Article 7(e) of Law 35/2006.
- CGPJ official severance calculator (English): check your result against the official tool; its result is not binding
- Agencia Tributaria IRPF 2025 manual: exempt amount and limits for dismissal compensation
- Agencia Tributaria IRPF summary table: dismissal compensation exemptions
- OECD Employment Protection country note for Spain
The Workers' Statute text is cited by its BOE identifier (BOE-A-2015-11430) above; its consolidated text should be linked from the current BOE page at the next refresh. No law-firm or EOR page is cited as a source, by design.
