How to Say "severance pay" in Spanish
The most common Spanish word for “severance pay” is “liquidación” — 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..
liquidación
/lee-kee-dah-SYOHN//likidaˈsjon/

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/

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
Related Translations
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