How to Calculate Unfair Dismissal Compensation in Spain (2026)

Losing a job is one of the most stressful situations a worker can face. Knowing exactly how much severance you are entitled to ( and how it is calculated ) not only brings peace of mind but allows you to negotiate from a position of knowledge. In this guide, we break down the legal formula, caps, exceptions, and applicable taxation in 2026.

1. Types of Dismissal and Their Compensation

Type of Dismissal	Legal Basis	Compensation
Unfair (improcedente)	Art. 56.1 ET	33 days/year (max 24 monthly salaries)
Unfair (contract before 12/02/2012)	Trans. Prov. 11 ET	45 days/year until 12/02/2012 + 33 days/year (max 42 combined)
Objective (fair)	Art. 53.1.b ET	20 days/year (max 12 monthly salaries)
Collective (ERE)	Art. 51 ET	20 days/year (legal minimum; negotiable upward)
Disciplinary (fair)	Art. 54-55 ET	€0

2. The Calculation Formula Step by Step

Compensation = Daily salary × 33 × Years worked

Practical Example: Employee with €36,000 gross annual salary and 6 years 4 months seniority:

Daily salary: €36,000 ÷ 365 = €98.63/day
Compensation days: (6 × 33) + (4 × 2.75) = 209 days
Compensation: 209 × €98.63 = €20,613.67 (under 24-month cap of €72,000)

3. Pre-2012 Contracts: Two-Tier Calculation

Tier 1 (until 12/02/2012): 45 days/year, cap 42 monthly salaries
Tier 2 (from 12/02/2012): 33 days/year. Combined cap: 42 monthly salaries.

4. Regulatory Salary Components (Art. 26 ET)

Includes: base salary, supplements (seniority, languages, night shift), prorated bonus payments, commissions, salary-classified transport, benefits in kind. Excludes: per diems, travel expenses, Social Security.

5. Legal Caps

Concept	Cap
Unfair dismissal (post-2012)	24 monthly salaries
Unfair dismissal (pre-2012, mixed)	42 monthly salaries
Objective dismissal	12 monthly salaries

6. Interim Wages and FOGASA

Interim wages only accrue when employer opts for reinstatement or worker is a legal representative. FOGASA guarantees compensation when employer is insolvent (cap: twice daily minimum wage, 33 days/year max 24 months). Claim deadline: 1 year.

7. Tax Treatment (Art. 7.e LIRPF)

Exempt up to statutory amount (33 days/year, max 24 monthly salaries). Absolute limit: €180,000. Excess taxed as employment income with possible 30% reduction if generation period exceeds 2 years. Exemption requires recognition in administrative conciliation or court judgment.

8. Critical Deadlines

Action	Deadline	Legal Basis
Challenge dismissal	20 business days from effective date	Art. 103.1 LRJS
FOGASA claim	1 year from final judgment	Art. 33.7 ET
Judgment enforcement	3 months from finality	Art. 279 LRJS

9. Common Errors

Not including bonus payments in regulatory salary
Confusing gross with net salary
Forgetting actual seniority from first temporary contract (Art. 15.5 ET)
Not applying pre-2012 tier
Accepting dismissal letter without review

How Lexiel Helps

Lexiel automates dismissal compensation: generates calculations from case data, applies pre/post-2012 tiers, verifies caps and tax exemptions, drafts conciliation petitions with correct amounts, always cites exact legal articles.

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