Unfair dismissal severance pay: how much are you entitled to
Calculate severance pay for unfair dismissal in Spain: 33 days of salary per year worked, capped at 24 months’ pay.
Results
Compensation
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Pending salary
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Pending holidays
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Pending extra payments
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Total gross
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Estimated income tax withholding
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Estimated total net
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Compensation for unfair dismissal is calculated at 33 days of salary per year worked (capped at 24 monthly payments), or 12 days per year for the end of a fixed-term contract. The remaining items are prorated for the days worked in the corresponding period.
Severance breakdown
Unfair dismissal severance pay: how much are you entitled to
This page preloads the severance calculator with the termination type "unfair dismissal" already selected. Unfair dismissal severance is different from a standard settlement (finiquito): while a settlement covers prorated salary, vacation and pending bonus payments, severance compensates for losing your job without just cause. This calculator adds both amounts to the result.
The legal formula is 33 days of salary per year worked, capped at 24 months’ pay. For example, with a salary of €1,800/month and 6 years of tenure, the daily wage is €59.18 (€1,800 × 12 ÷ 365), and the resulting severance is €11,717.26 (€59.18 × 33 days × 6 years), well below the cap.
The 24-month cap only starts to apply at around 22 years of tenure. For the same €1,800/month salary, from that tenure onward severance stays fixed at €43,200 (24 months’ pay), even though the uncapped 33-days-per-year calculation would give a higher figure from that point.
Unfair dismissal (no justified cause or a procedural defect) is compensated differently from fair or objective dismissal (justified cause, 20 days/year capped at 12 months’ pay) or a disciplinary dismissal ruled fair (no severance). Who classifies the dismissal is either the company, an agreement between the parties, or ultimately a labour court: in a real case, you should seek legal advice, since this calculator does not replace it.
Frequently asked questions
What is the difference between unfair and fair/objective dismissal?
Unfair dismissal (no justified cause or a procedural defect) is compensated with 33 days of salary per year, capped at 24 months’ pay. Fair or objective dismissal (justified cause, e.g. economic) is compensated with 20 days per year, capped at 12 months’ pay. A disciplinary dismissal ruled fair carries no severance. This calculator is preloaded for the unfair dismissal case.
How is the daily wage calculated for severance?
It is calculated as the gross monthly salary multiplied by 12 and divided by 365 days. With €1,800/month, for example, the daily wage is €59.18, the base multiplied by 33 days per year worked.
Does the 24-month cap affect most people?
No, it is only reached at around 22 years of tenure under the standard 33-days-per-year formula. For shorter tenures, severance is always 33 days × years worked, with no cap at all.
Is this severance pay subject to income tax withholding?
Mandatory severance for unfair dismissal is exempt from income tax up to the legal limit, which is what this page calculates. Salary, vacation and pending bonus payments are taxable, as shown in the calculator’s results breakdown.