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📊 Severance pay breakdown
The expiration of a temporary employment contract in Spain (such as fixed-term, eventual per production needs, or relief contracts) entitles the worker to a mandatory severance payment. This compensation is designed to offset the job instability inherent in temporary employment relationships.
🔍 How is temporary contract severance calculated?
Severance pay is regulated by Article 49.1.c of the Spanish Workers’ Statute. For all fixed-term contracts signed after January 1, 2015, the legal minimum compensation is 12 days of salary per year worked. For contract periods of less than a full year, the amount is prorated proportionally on a monthly basis. The regulatory daily salary must include the prorated share of extra payments (pagas extraordinarias) if they are not already integrated into the monthly paychecks.
📝 Worked calculation examples
Here are two typical contract termination scenarios and their calculated compensations.
Example 1: Worker on a short-term contract
- Regulatory daily salary: €50.00
- Proportional severance days: 6 days (half of 12)
Example 2: Worker on a longer eventual contract
- Regulatory daily salary: €60.00
- Fórmula applied: 1.25 years × 12 days × €60
❓ Frequently Asked Questions (FAQ)
No, training and apprenticeship contracts, as well as substitution (interinidad) contracts to cover temporary leaves, do not generate a legal right to severance under general Spanish law, unless specified by your collective bargaining agreement.
Unlike standard severance pay for unfair dismissal, compensation paid at the end of a temporary contract is subject to IRPF withholding and is included in your Social Security contribution base.
If a temporary contract goes beyond its statutory maximum limit (typically 6 to 12 months depending on the sector) and you continue working, the contract is legally converted into a permanent (indefinido) contract, raising your potential future dismissal severance rights.