Settlement and Dismissal of a Domestic Worker: How to Calculate it Correctly
Avoid costly mistakes: we explain how to calculate the settlement and severance pay for the dismissal of your domestic worker according to the law.
Domestic Worker 2026
What does a domestic worker’s settlement include?
Properly ending the employment relationship with your domestic worker is as important as starting it. An incorrectly calculated settlement or incorrect severance pay can lead to claims before the Social Court. The settlement includes wages for days worked in the last month, the proportional part of extraordinary payments not received, and unused vacation days. Furthermore, if the employer opts for termination by employer’s decision, the severance pay is 12 days’ salary per year worked (maximum six months’ salary); in an unfair dismissal, it increases to 20 days per year (maximum twelve months’ salary). Termination by employer’s decision also requires 20 days’ notice (7 if employed for less than a year).
How we do it
How we help you calculate and manage the settlement
We accurately calculate the settlement and severance pay for your domestic worker, taking into account their seniority, salary, extra payments, and pending vacation days. We prepare all necessary documentation: settlement receipt, termination letter, and, if applicable, the notice period calculation, avoiding overpayments or insufficient amounts that could lead to a claim.
Frequently asked questions
How is severance pay for a domestic worker's dismissal calculated?
It depends on the reason. In the case of termination by employer’s decision, 12 days’ salary per year worked is due (maximum 6 months’ salary); in the case of unfair dismissal, 20 days per year (maximum 12 months’ salary). We calculate the exact amount according to your case.
Is it mandatory to give notice before dismissing a domestic worker?
Yes, in the case of termination by employer’s decision, the employer must give 20 days’ notice (7 days if employed for less than a year). If the deadline is not met, it must be compensated financially in the settlement.
What happens if I don't pay my domestic worker's settlement correctly?
They can claim the difference before the Social Court within one year, and even report it to the Labor Inspectorate. An erroneous calculation can lead to surcharges, late payment interest, and penalties.
Are unused vacation days paid in the settlement?
Yes. If the domestic worker has not enjoyed all the vacation days accrued up to the termination date, they are paid proportionally in the settlement, calculated based on their actual daily salary.
Ready to manage your domestic worker without complications?
Start now from 29.90 €/month, no commitment.
29.90 €/month