Inklingo

How to Say "severance pay" in Spanish

English → Spanish

liquidación

/lee-kee-dah-SYOHN//likidaˈsjon/

nounB2general
Use 'liquidación' when referring specifically to the final payment an employee receives upon leaving a job, which typically includes unpaid salary, unused vacation days, and severance pay.
A person in a suit happily holding a thick envelope of money after leaving an office building.

Examples

Recibí mi liquidación completa la semana pasada.

I received my full severance pay last week.

Mañana me pagan mi liquidación.

They are paying me my severance pay tomorrow.

Tengo que revisar los cálculos de mi liquidación laboral.

I have to check the calculations of my work settlement.

Después de diez años en la empresa, recibió una buena liquidación.

After ten years at the company, he received a good severance package.

Possessive usage

People usually say 'mi liquidación' or 'su liquidación' to refer to the specific money owed to them personally.

Liquidación vs. Salario

Mistake:Using liquidación to mean your monthly salary.

Correction: Liquidación is only the final, closing payment when a relationship (like a job) ends.

indemnización

/in-dem-nee-thah-thyohn//indemniθaˈθjon/

nounB2formal
Use 'indemnización' when the payment is a form of compensation for a loss or damage, which can include job loss but also other situations like compensation for a delayed flight.
A friendly person handing a pouch of coins to another person who has a small bandage on their arm.

Examples

Me ofrecieron una indemnización por el despido improcedente.

They offered me severance pay for the unfair dismissal.

La aerolínea me dio una indemnización por el retraso del vuelo.

The airline gave me compensation for the flight delay.

Tras el despido, el trabajador tiene derecho a una indemnización.

After being fired, the worker is entitled to severance pay.

El juez dictó una indemnización por daños y perjuicios.

The judge ordered compensation for damages and losses.

The '-ción' Rule

Just like almost all words ending in '-ción', this word is feminine and uses 'la' or 'una'.

Plural Spelling

When you make it plural (indemnizaciones), the accent mark on the 'ó' disappears.

Spelling with 'S'

Mistake:indemnisación

Correction: indemnización (In Spanish, this ending is spelled with a 'z'.)

Choosing Between Liquidación and Indemnización

The most common mistake is using 'indemnización' for all job-leaving payments. Remember that 'liquidación' is the more specific and common term for the final payout when ending employment, while 'indemnización' is broader and can refer to compensation in various contexts, including but not limited to job loss.

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