Accurate, instant, and transparent labor settlement estimates.
A severance settlement (liquidación laboral) is the final payment an employer must provide to an employee when the employment contract ends, covering all accrued and pending labor benefits established by law.
A severance settlement is the comprehensive financial calculation that includes accrued wages, statutory bonuses, severance funds, unused vacation compensation, and applicable indemnities upon contract termination.
Every employee with a formal labor contract is entitled to receive a full severance settlement, regardless of whether the termination was voluntary (resignation), mutual agreement, or employer-initiated (dismissal).
Severance calculations follow the Código Sustantivo del Trabajo (CST) in Colombia, Ley Federal del Trabajo (LFT) in Mexico, and equivalent labor codes in other jurisdictions.
Three clear steps to compute statutory employment settlement and legal compensations.
Specify start and termination dates, basic monthly wage, and termination reason (dismissal without cause, resignation, or mutual agreement).
Our financial engine calculates statutory bonuses, severance accruals, accrued vacation days, and mandatory interest according to labor statutes.
Review the color-coded itemized breakdown, visual allocation chart, and export a clean PDF document for payroll compliance.
💡 Nota: Cálculos estructurados conforme a los marcos normativos laborales y estándares de compensación.
The core mathematical formulas used to compute each component of the employment settlement.
(Base Salary + Transport) × Days ÷ 360 Calculated proportionally for each semester worked. Employees are entitled to 15 days of salary per semester.
(Base Salary + Transport) × Days ÷ 360 One month of salary per year worked, computed proportionally for partial periods.
(Severance Accrued × Days × 12%) ÷ 360 Annual interest of 12% on accumulated severance funds, calculated proportionally.
(Base Salary × Pending Days) ÷ 30 Compensation for unused vacation days at the base salary rate, excluding transport allowance.
Real-world worked examples showing how severance amounts are computed for different employment situations.
These examples are illustrative estimates based on standard Colombian labor law formulas. Actual amounts may vary.
Summary of legal formulas and computation basis according to standard labor codes.
| Compensation Concept | Legal Formula | Legal & Regulatory Basis |
|---|---|---|
| Prima de Servicios | (Salario Base + Aux. Transporte) × Días Semestre ÷ 360 | Art. 306 Código Sustantivo del Trabajo (15 días por semestre) |
| Cesantías | (Salario Base + Aux. Transporte) × Días Año ÷ 360 | Art. 249 CST (Un mes de salario por año laborado) |
| Intereses sobre Cesantías | (Cesantías Acumuladas × Días Año × 12%) ÷ 360 | Ley 52 de 1975 (12% anual sobre saldo de cesantías) |
| Vacaciones Compensadas | (Salario Base Ordinario × Días Pendientes) ÷ 30 | Art. 186-189 CST (15 días hábiles remunerados por año) |
| Indemnización Despido Injustificado | 30 días año 1 + 20 días por año adicional proporcional | Art. 64 CST (Para contratos a término indefinido < 10 SMMLV) |
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Everything you need to know about severance calculations and termination pay.
It is the final payment an employer must disburse to an employee upon contract termination, covering accrued wages, statutory bonuses, severance funds, unused vacation days, and indemnities if applicable.
In unfair dismissal (despido sin justa causa), statutory compensation includes accrued benefits plus an indemnity determined by contract type and total tenure length.
Yes, in jurisdictions like Colombia (CST), transportation subsidies are included in the calculation basis for statutory bonuses and severance funds for wages below 2 statutory minimum salaries.
Generally, final settlements must be paid immediately on the last working day or within standard payroll cycles to prevent legal moratory penalties.
A severance settlement (liquidación) is paid when the employer terminates the contract, and it includes indemnities for unjust dismissal. A settlement (finiquito) covers only accrued benefits owed regardless of termination reason, such as pending salary, vacation, and statutory bonuses.
Accrued vacation compensation is calculated using the formula: (Base Salary × Pending Days) ÷ 30. Employees accrue 15 business days of paid vacation per year worked, and any unused days are compensated at the base salary rate, excluding transportation allowances.
Yes, the contract type directly impacts the calculation. Indefinite-term contracts (contrato a término indefinido) have different indemnity formulas than fixed-term contracts (contrato a término fijo), where the indemnity equals the remaining salary through the contract end date.
Technical articles, legal breakdowns, and step-by-step guidance to compute employment settlements accurately.
Herramientas Guía práctica para ingresar datos reales de nómina en una calculadora laboral entender el desglose y validar cada concepto
Derecho Laboral Comparación detallada de los cinco escenarios de terminación laboral y el impacto de la causa de retiro en la indemnización
Salarios Guía para incluir días no pagados comisiones horas extras y pagos atrasados de manera separada a las prestaciones sociales