Doctrine by topic · DGT Observatory

Workers' Statute: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 46 rulings · 2014–2025

Current position

In collective dismissals due to economic, technical, organizational, production, or force majeure reasons, the severance pay is exempt in the portion that does not exceed the mandatory limits of the Workers' Statute for unfair dismissal, with a maximum cap of 180,000 euros. The excess over said limits is taxed as employment income and is subject to withholding according to the general procedure of the IRPF (Personal Income Tax) Regulations.

The DGT's position remains constant regarding the exemption of severance pay for collective dismissals. The criterion is based on the application of the limits of the Workers' Statute and the 180,000 euro cap. No changes are observed in the doctrine applied to this scenario throughout the analyzed rulings.

Turning points

  1. V2758-15

    Establishes that the 180,000 euro limit does not apply if the communication of the opening of the consultation period was made before August 1, 2014.

Analysis based on 44 of 46 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V0010-25 2 Jan 2025

Dismissal compensation exempt up to unjust dismissal amount and 180,000 euros

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidodespido por causas objetivasdespido improcedenteexenciónrendimiento del trabajo LIRPF — Ley 35/2006 del IRPF art. 7 e)LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1152-23 5 May 2023

Statutory severance exemption capped at 180,000 euros

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidodespido colectivoexenciónrendimiento del trabajoreducción del 30% LIRPF — Ley 35/2006 del IRPF art. 7.e)LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V3034-21 7 Dec 2021

Excess of unfair dismissal payment above statutory limits taxed as income

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidoexenciónrendimiento del trabajodespido improcedenteestatuto de los trabajadores LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1254-21 6 May 2021

Payment for collective dismissal exempt up to 180,000 euros

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidodespido colectivoexenciónrendimiento del trabajoestatuto de los trabajadores LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V3255-20 30 Oct 2020

Severance pay is not subject to minimum wage attachment limits

SG de Tributos
embargoindemnizaciónsalarioextinción de contratolímites de embargabilidad LGT — Ley 58/2003 General Tributaria art. 169.2.cLGT — Ley 58/2003 General Tributaria art. 7.2
Affects CompanyExpat · Non-residentIndividual
V1317-19 6 Jun 2019

Statutory severance pay exemption capped at 180,000 euros

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidodespido colectivoexenciónaños de servicioestatuto de los trabajadores LIRPF — Ley 35/2006 del IRPF art. 7.eEstatuto de los Trabajadores
Affects CompanyExpat · Non-residentIndividual
V0169-19 25 Jan 2019

SMI seizure limits apply only to payments classified as salary

SG de Tributos
embargo de sueldossalario mínimo interprofesionalindemnización por rescisiónpercepciones económicaslímites de embargabilidad LGT — Ley 58/2003 General Tributaria art. 169.2.cLGT — Ley 58/2003 General Tributaria art. 7.2
Affects CompanyExpat · Non-residentIndividual

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