Spain Severance Pay Calculator
Estimate statutory severance (indemnización por despido) in Spain based on salary, tenure, and dismissal type.
Educational estimate only. Spanish labor law can include special rules (for example, pre-2012 service periods, collective agreements, salary concepts, and court decisions).
How severance pay works in Spain
If your employment relationship ends in Spain, your right to compensation depends mainly on the legal reason for termination. This is why a good Spain severance pay calculator must begin with dismissal type and not salary alone.
In broad terms, Spanish severance is often calculated as:
Daily salary × compensation days accrued, with possible legal caps expressed in monthly salaries.
Main severance formulas used in this calculator
1) Objective dismissal (Despido objetivo)
- 20 days of salary per year of service
- Maximum: 12 monthly salaries
2) Collective dismissal (Despido colectivo / ERE)
- Common statutory minimum is also 20 days per year
- Maximum: 12 monthly salaries
- Some agreements improve these terms
3) Unfair dismissal (Despido improcedente)
- General current rule: 33 days per year
- Maximum: 24 monthly salaries
- Transitional pre-2012 calculations are more complex and are not fully modeled here
4) End of temporary contract
- Typically 12 days per year worked
- Some contract types may differ
5) Fair disciplinary dismissal or resignation
- Usually no severance compensation
- Other pending payments (salary, unused vacation, etc.) may still apply
What this Spain severance pay calculator includes
- Annual gross salary to derive daily and monthly salary references
- Years and additional months of service
- Legal compensation days based on dismissal type
- Cap checks where applicable (12 or 24 monthly salaries)
- A clear result breakdown for transparency
Step-by-step example
Suppose an employee earns €36,500 annual gross salary, has worked 6 years and 0 months, and receives an objective dismissal.
- Daily salary = 36,500 / 365 = €100.00
- Compensation days = 6 × 20 = 120 days
- Gross severance = 120 × €100.00 = €12,000
- Cap = 12 monthly salaries = 12 × (36,500/12) = €36,500
- Estimated severance = min(€12,000, €36,500) = €12,000
Important legal nuances
While this tool is useful for planning, real settlements can differ due to legal and payroll detail. In Spain, practical outcomes may be affected by:
- Exact contract history and service start dates
- Whether part of the employment period is subject to transitional rules
- Variable compensation components and how salary is defined
- Collective bargaining agreements (convenios colectivos)
- Court decisions, settlement agreements, or procedural defects
FAQ: Spain severance pay calculator
Is severance taxed in Spain?
Certain statutory severance amounts can be tax-exempt up to legal limits, but tax treatment depends on the case. Always confirm with a tax professional.
Does this calculator include unpaid salary and unused vacation?
No. This tool estimates severance only. Final settlement (finiquito) can include salary due, extra payments, and untaken vacation.
Can I use net salary instead of gross salary?
You should use gross salary. Severance calculations are generally based on gross remuneration concepts.
Final note
This Spain severance pay calculator is designed for quick, practical estimates. For a dismissal dispute, settlement negotiation, or judicial claim, consult a qualified Spanish labor lawyer or advisor to apply the precise legal framework to your case.