Spain dismissal compensation (indemnización por despido) calculator
The days of salary set by law according to how your contract ends, your seniority and your pay, with their caps.
Compensation
€10,849
165 days of salary, at €65.75 a day
- Salary of one day: €65.75
- Cap: 720 days (24 months of salary)
- Seniority: 5 years
With 5 years of seniority and a gross salary of €24,000 a year (€65.75 a day), unfair dismissal gives a right to 33 days per year: 165 days of salary, that is, €10,849.
The compensation set by law is exempt from IRPF, up to €180,000; what the collective agreement or a pact adds on top is not.
I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.
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| Annual gross salary | €24,000 | |
|---|---|---|
| ÷ | Days of the year | 365 |
| = | Salary of one day | €65.75 |
| Seniority5 years | 60 months | |
| × | Days of salary per year | 33 |
| = | Days of salary | 165 days |
| Legal cap | 720 days | |
| = | Compensation | €10,849.32 |
How it works
- The salary of one day is the annual gross salary, with extra payments and fixed supplements, divided by 365. With €24,000 a year it is €65.75 a day.
- The law sets how many days of salary correspond to each year of service: 33 for unfair dismissal, 20 for objective dismissal (and collective layoff) and 12 at the end of a temporary contract. Months short of a year are counted in proportion: 6 months is half a year.
- There are caps: 24 months of salary (720 days) for unfair dismissal and 12 months of salary (360 days) for objective dismissal. If your contract started before February 12, 2012, the time before that date is counted at 45 days per year, with a cap of 720 days, unless that time already gives more, and never more than 42 months of salary.
Worked example
5 years with €24,000 a year: 24,000 ÷ 365 = €65.75 a day. For unfair dismissal, 33 × 5 = 165 days: 165 × 65.75 = €10,849. For objective dismissal, 20 × 5 = 100 days: €6,575. With 25 years, unfair dismissal would give 825 days, but the cap is 720: €47,342 instead of €54,247.
Sources
- Workers’ Statute, articles 49.1.c, 51.8, 53.1.b, 56.1 and 59.3 and eleventh transitional provision (BOE) (in Spanish)
- Law 35/2006 on IRPF, article 7.e: dismissal compensation, exempt up to €180,000 (BOE) (in Spanish)
Text checked on October 5, 2026
Good to know
- This calculator gives the compensation set by law. The collective agreement or your contract may improve on it, and in an agreement before the conciliation service another figure can be agreed.
- If you have leftover days in a month, the law prorates by months: ask an employment lawyer, your union or the conciliation service how to count them in your case.
- In an unfair dismissal, the company chooses between taking you back or paying you the compensation (Workers’ Statute, art. 56). And there is a short deadline: the action against dismissal lapses after 20 working days, and the request for conciliation suspends the deadline (art. 59.3).
- The finiquito is another thing: it is what you are owed for work already done (pending salary, untaken vacation, accrued extra payments). It is added to the compensation and this calculator does not include it.
- The part of the compensation set by law is exempt from IRPF, up to €180,000 (Law 35/2006, art. 7.e); what the collective agreement, a pact or the contract add on top is not.
Frequently asked questions
How is compensation for unfair dismissal calculated?
With 33 days of salary per year of service, counting months short of a year in proportion, up to a maximum of 24 months of salary. With 5 years and €24,000 gross a year, the salary of one day is €65.75, that gives 165 days and the compensation is €10,849.
And for an objective dismissal?
It is 20 days of salary per year of service, with a maximum of 12 months of salary (Workers’ Statute, art. 53.1.b). With 5 years and €24,000 a year that gives 100 days, that is, €6,575. In collective layoffs the amount is the same.
How much am I owed at the end of a temporary contract?
The pro rata share of 12 days of salary per year of service (art. 49.1.c), except in training contracts and replacement contracts. With 1 year and 6 months and €24,000 a year that gives 18 days: €1,184.
What changes if my contract started before 2012?
The time up to February 12, 2012 is counted at 45 days per year and the time after at 33. The general cap is still 720 days, unless the earlier period already gives more: then that number is the cap, without exceeding 42 months of salary. Enter that seniority above.
How long do I have to challenge a dismissal?
Twenty working days from when it takes place (Workers’ Statute, art. 59.3). If you file the request for conciliation with the mediation body, the deadline is suspended.