Employment law
How to calculate severance pay in Spain: a practical guide
Severance and final settlements cause a lot of confusion. Here is what they include and how they are calculated in Spain under the Workers' Statute.
Settlement vs. severance: not the same
The final settlement is what the company owes you when the relationship ends: salary for days worked, untaken holiday and the pro-rata share of extra payments. Severance is an additional amount due only in certain types of dismissal.
Dismissal types and their severance
| Type | Severance |
|---|---|
| Unfair dismissal | 33 days/year (max. 24 months) |
| Objective/collective dismissal | 20 days/year (max. 12 months) |
| End of fixed-term contract | 12 days/year |
| Voluntary resignation | No severance |
Example: unfair dismissal
Salary of €2,000/month and 5 years of service. Unfair-dismissal severance is: (2,000 ÷ 30) × 33 × 5 = €11,000, plus the settlement of any outstanding pro-rata amounts.
What to check before signing
- That all days worked in the final month are included.
- Accrued and untaken holiday.
- The pro-rata share of extra payments.
- Sign "under protest" if you disagree with the calculation.
Calculate your severance and settlement for your case.
Severance calculator →