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Dismissal Compensation Calculator
Calculate the severance pay you are entitled to based on dismissal type, length of service and salary. Includes the transitional regime for contracts prior to 2012.
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Include bonus payments and fixed supplements
Calculation result
Reference daily rate
Annual gross salary ÷ 365
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Years of service
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Transitional regime (contract before 12/02/2012)
Pre-12/02/2012 tranche (45 days/year)
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Post-12/02/2012 tranche (33 days/year)
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Compensation days applied
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Total gross compensation
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Fair dismissal: A disciplinary dismissal with a justified and proven cause does not entitle the employee to severance pay. The employee receives only their final settlement (salary, holiday pay and proportional bonuses).
Important: This calculation is indicative. Compensation may be exempt from IRPF up to the statutory limits. The reference salary includes all fixed pay components. Consult a labour law advisor for your specific situation.
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Types of dismissal and their compensation
Unfair dismissal
This is the most common scenario. It occurs when an employer dismisses an employee without establishing sufficient grounds, or when the stated grounds are not proven in court. Compensation is 33 days' salary per year of service, capped at 24 monthly payments, for contracts entered into on or after 12 February 2012. For earlier contracts, the transitional regime applies.
Transitional regime (contracts before 12/02/2012)
Employees with contracts predating the 2012 labour reform are entitled to compensation calculated in two tranches: 45 days/year for the period worked up to 12/02/2012 (capped at 42 monthly payments overall), and 33 days/year for the period thereafter. The pre-reform tranche cannot exceed the equivalent of 720 days' salary calculated under the old formula.
Fair dismissal
When a disciplinary dismissal is properly justified and evidenced by the employer — repeated absences, serious insubordination, fraud, etc. — the employee has no right to severance pay, though they are entitled to their full final settlement. It is essential to seek legal advice before accepting a dismissal as fair.
Collective dismissal (redundancy)
Dismissals for economic, technical, organisational or production reasons — including collective redundancy procedures (ERE) — generate compensation of 20 days' salary per year, capped at 12 monthly payments. However, agreements reached during the consultation period frequently improve these minimums, making collective negotiation decisive. BMC advises both employers and employees in collective redundancy processes.
Recent case law trends
The Supreme Court and the CJEU have in recent years strengthened protection against dismissal. Noteworthy rulings include the nullity of dismissal during sick leave, the application of the proportionality principle to disciplinary breaches, and the extension of protection to employees on temporary incapacity. Challenging a dismissal within the 20-working-day deadline is essential to preserve all legal rights.
For a precise assessment of your compensation entitlement and the options available for contesting a dismissal, see our Employment Law service.
Key concepts
This tool provides a directional estimate. A specialist can analyse your specific situation in detail.
Methodology and sources
Assumptions applied by this calculator
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Unfair dismissal (despido improcedente)
33 days/year of service, capped at 24 monthly salaries (ET Art. 56, post-RDL 3/2012).
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Pre-2012 transitional regime
service before 12 February 2012 accrues at 45 days/year (cap 42 monthly salaries); service from 12 February 2012 at 33 days/year. Combined cap is 720 daily salaries (STS 29/09/2014).
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Objective/economic dismissal
20 days/year, capped at 12 monthly salaries (ET Art. 53).
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Disciplinary dismissal upheld by court
no severance entitlement.
Official sources
Last updated: 2026-01-15
This calculator provides an estimate for informational purposes. It does not replace professional advice. Results may vary based on personal circumstances and regulatory changes. Consult an advisor for personalized planning.
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