Being made redundant is stressful enough without having to calculate your compensation manually. Our free redundancy pay calculator for Spain tells you exactly what you are entitled to under Spanish labour law — enter your salary, years of service and type of dismissal and get the result instantly.
Types of dismissal and their compensation in Spain
Spanish labour law recognises several categories of dismissal, each with a different compensation amount. Objective redundancy (despido por causas objetivas) — such as economic, technical or organisational reasons — entitles you to 20 days of salary per year worked, capped at 12 monthly payments. Unfair dismissal (despido improcedente) gives you 33 days of salary per year worked, capped at 24 monthly payments (45 days for employment before February 2012, up to a cap of 42 monthly payments). Fair dismissal (despido procedente) — disciplinary dismissal deemed justified — carries no compensation obligation.
How is redundancy pay calculated?
The base calculation uses your daily salary multiplied by the number of compensation days multiplied by your years of service. Daily salary is calculated as your annual gross salary (including pro-rated bonuses) divided by 365. Fractions of a year are counted proportionally — so 6 months counts as 0.5 years. The result is then compared against the legal caps and the lower figure applies.
What is included in "salary" for the calculation?
The salary base for redundancy calculation includes your fixed gross monthly pay and any regular bonuses (paga extra). It does not typically include non-salary benefits such as meal vouchers, transport allowances, company car or private health insurance — though these may be included if they form part of your contractual salary as defined in your employment contract or collective agreement (convenio colectivo).
Can I negotiate more than the legal minimum?
Yes. The amounts above are legal minimums set by the Workers' Statute (Estatuto de los Trabajadores). Your employer may offer a higher amount, particularly if the dismissal could be contested as unfair. If you believe your dismissal is unfair, you have 20 working days to file a conciliation claim (papeleta de conciliación) and then take legal action if needed.
Frequently asked questions
How many days per year am I entitled to for unfair dismissal in Spain?
33 days of salary per year worked, with a maximum of 24 monthly payments. For employment contracts signed before February 12, 2012, the old rate of 45 days applies for that period, up to a combined cap of 42 monthly payments.
What is the difference between objective redundancy and unfair dismissal?
Objective redundancy (20 days/year) occurs when the company has legitimate economic, technical or organisational reasons. Unfair dismissal (33 days/year) is when the company cannot justify the dismissal or the procedure is not followed correctly.
Is redundancy pay taxable in Spain?
Redundancy compensation up to the legally required amount is exempt from IRPF income tax. Any amount paid above the legal minimum is subject to IRPF and must be declared in your annual tax return.
What if my employer refuses to pay?
You must file a papeleta de conciliación within 20 working days of the dismissal. If conciliation fails, you can take the case to the social court (juzgado de lo social). Consider consulting an employment lawyer.
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