How to Say “Severance Pay” in Spanish

indemnización por despido
/indemniθaθjon poɾ despido/from spelling rules
In Spanish, severance pay is indemnización por despido.
The phrase indemnización por despido refers specifically to the money paid to an employee when they are terminated by their employer. It is not used for situations where an employee resigns voluntarily.
Meaning: money paid to employee as compensation (noun)

What does it mean word for word?

The phrase is composed of indemnización (compensation/indemnity), por (for/due to) and despido (dismissal/firing).

Which one should you use?

While indemnización por despido is a standard way to express this, you may also see liquidación por despido or the more legalistic compensación por terminación laboral used in formal contexts.

Is it said differently in some regions?

In Spain, indemnización por despido is a common term, though you will also frequently hear the word finiquito used to refer to severance pay.

How does it change in a sentence?

The noun indemnización is feminine. If you choose to use an adjective to describe this noun, that adjective must also be in the feminine form.

How do you pronounce it?

/indemniθaθjon poɾ despido/

Did you know?

  • The word despido comes from the verb despedir, which in everyday Spanish is also the standard word used to say 'goodbye'.
  • The word indemnización shares an ancient root with the English word 'indemnity', stemming from the idea of being 'unharmed' or 'free from loss'.
  • In some Spanish-speaking countries, liquidación is used more broadly than indemnización because it can include unpaid vacation days and bonuses rather than just the firing penalty.

Examples in context

  • La empresa ofreció una indemnización por despido justa y acorde a la ley laboral vigente.
    The company offered a fair severance pay in accordance with the current labor law.
  • La indemnización por despido es muy alta.
    The severance pay is very high.
  • ¿Calculaste bien la indemnización por despido?
    Did you calculate the severance pay correctly?
  • No recibí mi indemnización por despido todavía.
    I haven't received my severance pay yet.

Example conversation

Lucía and Mateo are talking about his recent job loss.

  1. Lucía

    Siento mucho lo de tu trabajo, Mateo.
    I am very sorry about your job, Mateo.
  2. Mateo

    Gracias, Lucía, pero estoy preocupado por el dinero.
    Thanks, Lucía, but I am worried about the money.
  3. Lucía

    ¿Te darán una buena indemnización por despido?
    Will they give you a good severance pay?
  4. Mateo

    Espero que sí, para poder pagar el alquiler.
    I hope so, to be able to pay the rent.

Sources

  • IPA marked “from spelling rules” is derived from standard Spanish spelling, where Wiktionary gives none.
  • Word origins: Wiktionary entries despido, indemnización, por, CC BY-SA 4.0.
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Mike Ricky
Mike RickyHelp make this guide better. Spot a mistake, know another way to say it, or have an example from real life? Share it below.
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