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Final settlement and severance pay calculator 2026
Work out separately the final settlement (finiquito), which is always paid, and the severance pay (indemnización), which depends on how the contract ends. Under the general rules of the Spanish Workers’ Statute, including the one for contracts older than the 2012 reform.
Including the extra payments.
Set by your collective agreement.
The date seniority counts from.
Calendar days. The legal minimum is 30.
This is only a rough guide and is not valid as a final calculation. For the definitive amount, check with your payroll or employment adviser.
Final settlement (finiquito)
What has been earned and not yet paid. Due however the contract ends.
- Salary for the last month (15 days)
- €900.00
- Holiday not taken (11.67 days)
- €805.79
- Pro rata Christmas payment
- €1,420.27
- Pro rata summer payment
- €527.67
Severance pay (indemnización)
Only for some ways of ending the contract, and on top of the settlement.
- 33 days per year × 5.67 years of service
- Days of salary
- 187
A gross estimate under the general rules of the Workers’ Statute, with each extra payment worth one monthly salary. Your collective agreement may improve them. The settlement is taxed under IRPF; statutory severance pay is tax free up to €180,000. What you type is calculated in your browser and is not sent anywhere.
How it calculates
Final settlement
Salary for the days worked in the last month at 1/30 of the monthly pay, holiday earned in the year minus holiday taken at the daily salary (gross annual salary divided by 365), and the share of each extra payment earned since the last one was paid.
Severance pay
Daily salary times days per year times years of service, counting part of a month as a whole month, up to each cap: 24 months’ pay for unfair dismissal, 12 for objective dismissal and 9 for a substantial change. For contracts older than 12 February 2012, that time counts at 45 days per year.
Notice
If the employer does not give the 15 days required by law in an objective dismissal or at the end of a temporary contract longer than a year, it pays them. If the person leaving does not give the notice set by their collective agreement, it can be deducted.
What it does not take into account
- Whatever your collective agreement improves: more holiday or severance days, extra payments of a different amount, or more than two of them.
- Overtime, commission, allowances or supplements not included in the gross annual salary you enter.
- Holiday from previous years that can still be taken, for instance after sick leave.
- Interim wages, or anything agreed at conciliation or set by a court.
- IRPF withholding and social security contributions: the result is gross.
The full explanation, with examples
What goes into the settlement, when severance pay applies, how to sign in disagreement and what is taxed, step by step and with a worked case.
Read the articleFrequently asked questions
No. It is a rough guide under the general rules of the Workers’ Statute, and your collective agreement can change the result. For the definitive amount, check with your payroll or employment adviser.
The gross annual salary, whether it is paid in 14 or 12 payments, the contract start date and the last day worked, the holiday days per year and those already taken, and how the contract ends.
No. The calculation runs in your browser and nothing is sent to any server.
Yes. Time up to 11 February 2012 counts at 45 days per year and later time at 33, up to 720 days of salary, unless the older period alone already exceeds that: then that period is paid, up to 42 months’ pay.
Because they are different things. The settlement is what has been earned and not paid, and it is due however the contract ends. Severance pay compensates for losing the job and only exists in some cases, such as unfair or objective dismissal.