# Spain Severance Pay Calculator: Complete Guide
The end of an employment contract is a critical moment, often filled with financial uncertainty. Whether it is a dismissal, a resignation, or the end of a fixed-term contract, understanding how much money you are owed is essential to protecting your rights as a worker in Spain.# Finiquito vs Indemnización: What is the difference?
- Finiquito (Settlement): The document that settles all outstanding debts between the company and the employee at the end of the employment relationship. You are always entitled to this, regardless of the reason for leaving.
- Indemnización (Severance): Economic compensation the company must pay for certain types of dismissal or contract termination. Not always applicable — for example, in voluntary resignations there is no severance.
# Key components of the Finiquito
- Current month salary: Days worked from the last pay date to the last day of employment.
- Unused vacation: If you leave with remaining vacation days, the company must pay them out.
- Bonus payments: The proportional share of Christmas and summer bonuses, if not already prorated monthly.
- Bonuses or incentives: Any accrued and unpaid bonus up to the leaving date.
Practical calculation example
Employee with an annual gross salary of €30,000 and 2 years of service:
- Daily salary: 30,000 / 365 = €82.19
- Unfair dismissal (33 days): 33 x 2 x 82.19 = €5,424.54
- Objective dismissal (20 days): 20 x 2 x 82.19 = €3,287.60
Expert tip: Always review your Collective Bargaining Agreement. Some professional sectors have agreed severance amounts higher than the legal minimums set by the Workers Statute.