Calculate your severance pay
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SEVERANCE PAY
$ 4,500.00
No ISSS, AFP or income tax deductions.
Estimate based on 30 days of basic salary per year of service (Código de Trabajo, art. 58), with a minimum of 15 days’ salary. The daily salary cap, which varies by economic activity, is not applied. This does not replace formal payroll calculations or advice. Ask us about your case.
How severance pay is calculated
Compensation for dismissal without justified cause is calculated using the worker’s basic salary and actual years of service. Unlike aguinaldo or vacation pay, it does not depend on a withholding table: it is an amount based on length of service.
- Daily salary: monthly salary divided by 30.
- Days for length of service: 30 days’ salary per complete year of service (Código de Trabajo, art. 58).
- Additional months: prorated on the same basis of 30 days per year; each additional month adds 2.5 days.
- Final amount: total days multiplied by daily salary.
The law caps the daily salary used for this calculation according to the company’s economic activity. This simulator does not apply that cap, so the result may exceed the legal entitlement for higher salaries. This limitation is also stated in the tool summary: for an actual settlement, confirm the applicable cap with our advisers before paying or claiming an amount.
An incorrect settlement, whether below or above the legal entitlement, often leads to a claim before the Ministerio de Trabajo or an employment lawsuit, both more costly than getting the calculation right initially. If your business is preparing to dismiss staff, or you want to check your entitlement, this calculator provides a starting point. The exact amount depends on details that a full payroll review must confirm.
Frequently asked questions
What if I was dismissed without justified cause?
You are entitled to 30 days of basic salary per year of service, plus the proportional amount for additional months, under the Código de Trabajo.
Is there a salary cap for calculating severance?
Yes. The law caps daily salary according to the company’s economic activity. This calculator does not apply it; for an actual case, ask us about the cap applicable to you.
Do additional months count?
Yes, prorated on the same basis of 30 days per year: each additional month adds 2.5 days.
Do you store what I enter?
No. Nothing is sent to the server and there are no tracking cookies on this page: when you close the tab, the data disappears.