redundancy calculator spain

How this redundancy calculator for Spain works

This page is designed for people who want a fast estimate of legal severance in Spain. The calculator applies common statutory formulas used for dismissal compensation and shows the result in euros with a clear breakdown.

It focuses on three typical situations:

• Objective dismissal / redundancy (despido objetivo)
• Unfair dismissal (despido improcedente)
• End of temporary contract (fin de contrato temporal)

Core severance formulas in Spain

1) Objective dismissal (including many redundancy cases)

For objective dismissal, statutory compensation is usually:

• 20 days of salary per year of service
• Maximum: 12 monthly payments (commonly treated as 360 salary days)

This is the most common formula when employers terminate for economic, technical, organizational, or production reasons and follow legal procedure correctly.

2) Unfair dismissal

When dismissal is judged unfair, the usual base rule is:

• 33 days of salary per year
• Maximum: 24 monthly payments (720 salary days)

For employment periods before 12 February 2012, transitional rules may apply using 45 days/year for that prior period, with a potential higher cap up to 42 months in specific cases. The calculator includes this split automatically when dates cross that reform date.

3) End of temporary contract

For many temporary contracts that expire correctly, compensation is generally:

• 12 days of salary per year of service

Some contract types and scenarios can differ, so always verify contract category and applicable agreement.

What salary is used in the calculation?

Spanish severance estimates are typically based on gross annual salary, divided by 365 to obtain daily salary. That means your calculation should include:

• Regular monthly salary
• Extra salary payments (if you receive 14 payments)
• Variable pay that should be included in salary base (when appropriate)

This calculator asks for monthly gross salary, number of annual payments, and optional variable annual pay to produce a practical estimate.

Step-by-step: using the calculator correctly

1. Select the dismissal type.
2. Enter start date and termination date.
3. Enter your gross monthly salary.
4. Set annual salary payments (12 or 14 in most cases).
5. Add annual variable pay if relevant.
6. Click Calculate Redundancy.

You will see the estimated severance amount, the daily salary used, service length, compensation days, and any legal cap applied.

What this calculator does not include

Final settlement in Spain can include more than severance compensation. This tool does not calculate:

• Unpaid salary days
• Unused vacation payout
• Prorated extra payments in final settlement (finiquito)
• Interest, penalties, or litigation costs
• Collective agreement improvements or negotiated extras

So think of this result as a statutory severance estimate, not a full payroll settlement.

Frequently asked questions

Is redundancy compensation in Spain taxed?

Mandatory statutory severance can be tax-exempt up to legal limits in many situations, but tax treatment depends on the legal basis and amount. Always confirm with a tax advisor for your case.

Can a collective agreement improve the legal amount?

Yes. Company agreements, sector agreements, settlement deals, or court outcomes can grant compensation above statutory minimums.

Why does the unfair dismissal result sometimes use transitional rules?

If your service includes time before 12 February 2012, Spain’s labor reform transition can affect how compensation days and caps are applied. This calculator includes a practical estimate of that mechanism.

Final note

If your dismissal is recent or disputed, use this redundancy calculator for Spain as a planning tool and then get personalized legal review. A quick consultation with a labor lawyer or graduado social can confirm the exact amount and identify any additional claims.