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V1835-25 13 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Exemption applies to severance pay up to wrongful dismissal limit

A worker asked whether the additional amount to equalise objective dismissal severance with wrongful dismissal severance is exempt. The DGT responds that the exemption applies up to the mandatory amount for wrongful dismissal and up to €180,000.

The question raised

Whether the additional amount would be exempt even if the severance pay for dismissal for objective reasons exceeds 20 days per year of service, up to the amount mandatorily established in the Workers' Statute for unfair dismissal, with a limit of 180,000 euros.

The DGT's ruling

In dismissals for objective reasons (Art. 52 of the Workers' Statute), the exempt portion of the severance pay is that which does not exceed the mandatory limits established in the Workers' Statute for unfair dismissal, with a cap of 180,000 euros. The excess over these limits shall be taxed as income from employment, and the 30 percent reduction may be applied if the generation period exceeds two years. Said reduction is subject to specific limits based on the amount of income received.

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