What to Do If Your Company Doesn't Pay Your Salary on Time

Steps to take if your company doesn't pay your salary, late-payment interest you can claim, when you can end the contract, and the role of FOGASA.

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Repeated non-payment or delay of salary is one of the most stressful situations a worker can face, precisely because it directly affects their ability to cover basic expenses. Knowing the steps available helps you act with a clear head instead of letting the situation slide out of ignorance.

The first step: a formal written claim

Even though it may seem obvious, formalizing your claim in writing (registered letter or any means that leaves verifiable proof) is important from the very first missed payment, not just asking verbally through informal channels. This formal claim documents the date you made it, which matters for calculating interest and later deadlines.

You're entitled to late-payment interest

A delay in paying salary entitles you to late-payment interest on the amounts owed, calculated from the date they should have been paid. This right exists whether or not you file a formal claim, though documenting the claim makes it much easier to prove the delay period if the case ends up in court.

Ending the contract over serious non-payment: an available option

If the non-payment is serious and persistent (case law has gradually clarified what counts as serious enough — generally several months of non-payment or substantial, repeated delays), you're entitled to request that a court terminate your contract due to a serious breach by the company, with the right to compensation equivalent to unfair dismissal (33 days' salary per year worked, capped at 24 months' pay), in addition to being able to claim the amounts owed.

Claiming the amount owed without ending the contract

You don't have to end the contract to claim the salary owed: you can file a claim for payment with the labor courts, demanding payment of what's owed, while keeping your job if you'd rather stay at the company despite the specific non-payment.

The role of FOGASA if the company is insolvent

If the company becomes insolvent or enters bankruptcy proceedings and can't cover the salaries owed, the Wage Guarantee Fund (FOGASA) can take on payment of part of those outstanding amounts (salaries and severance pay), within legally set maximum limits both in amount and number of days covered, acting as a subsidiary guarantee in the event of company insolvency.

The deadlines to claim aren't unlimited

There's a statute of limitations for claiming unpaid salary (generally one year from when the amount became due), so it's worth not delaying your claim too long once you notice the non-payment, to avoid losing your right to recover what's owed.

Estimate your compensation if you decide to end the contract

If the non-payment is serious enough that you're considering ending the contract, our severance pay calculator helps you estimate the approximate compensation you might be entitled to.