Que Salario Se Usa Para Calculo De Indemnizacion

Which salary is used for severance pay calculation?

The Spanish Labor Code (Article 111) specifies that severance pay should be calculated based on the employee's average monthly salary during the last 12 months of employment. This is known as the "base salary" for severance purposes.

However, there are exceptions to this rule:

• If the employee has worked for less than 12 months, the severance pay is calculated based on the average salary during the entire period of employment.
• If the employee has worked for more than 12 months but less than 24 months, the severance pay is calculated based on the average salary during the last 12 months of employment.
• If the employee has worked for 24 or more months, the severance pay is calculated based on the average salary during the last 12 months of employment.

It's important to note that the salary used for severance pay calculation should be the gross salary, before any deductions such as taxes or social security contributions.

Legal basis for salary selection

The Spanish Labor Code establishes the following rules for calculating severance pay:

1. The severance pay must be calculated based on the employee's average monthly salary during the last 12 months of employment.
2. If the employee has worked for less than 12 months, the severance pay must be calculated based on the average salary during the entire period of employment.
3. The severance pay must be paid in a single lump sum, unless the employee agrees to receive it in installments.
4. The severance pay must be paid within 15 days of the termination of the employment contract.

Calculation methods

There are two main methods for calculating severance pay in Spain:

Method 1: Average salary during the last 12 months

This is the most common method and is used when the employee has worked for 12 or more months. The formula for calculating severance pay using this method is:

The severance pay coefficient is determined by the number of years of service:

• Less than 1 year: 14 days of salary
• 1 to 4 years: 14 days of salary plus 1 day for each year of service
• 5 to 9 years: 18 days of salary plus 1 day for each year of service
• 10 to 14 years: 22 days of salary plus 1 day for each year of service
• 15 to 19 years: 26 days of salary plus 1 day for each year of service
• 20 or more years: 30 days of salary plus 1 day for each year of service

Method 2: Average salary during the entire period of employment

This method is used when the employee has worked for less than 12 months. The formula for calculating severance pay using this method is:

The severance pay coefficient for this method is 14 days of salary.

Examples of severance pay calculations

Let's look at two examples to illustrate how severance pay is calculated in Spain.

Example 1: Employee with 5 years of service

An employee has worked for 5 years and has an average monthly salary of €2,000. Using Method 1, the severance pay would be calculated as follows:

In this case, the employee would receive €180,000 in severance pay.

Example 2: Employee with 6 months of service

An employee has worked for 6 months and has an average monthly salary of €1,500. Using Method 2, the severance pay would be calculated as follows:

In this case, the employee would receive €126,000 in severance pay.