Late Salary in Spain: Interest and What You Can Do

Milagros is 39 years old, has been working as a cleaner in Madrid for four years and, on paper, should be paid on the 5th of each month. But since January her company has been paying on the 20th or the 25th. Sometimes, even in two installments. In September she still has not received all of July’s or August’s salary. She has rent, expenses, and one sentence stuck in her head: “if you complain, there are plenty of people waiting for your job.” If you are in a similar situation, this article on late salary in Spain is for you. And if you want to review your case carefully, you can write to Fernanda Vargas’s WhatsApp or book an appointment on Calendly.

Milagros’s story helps explain something important: a company cannot pay “when it can” as if it were doing you a favor. Paying wages on time is an obligation. And when it does not do so, it not only owes the payslip amount: it may also owe interest, and in certain cases this may open the door to asking a judge to terminate the contract with compensation and entitlement to unemployment benefit.

“Things Are Bad”: Milagros’s Months of Delay

Milagros does not want problems. She wants to be paid. Nothing else. What worries her is not only that two monthly salaries are missing. She is also distressed by the routine: waiting until the 20th or 25th, checking her account, receiving part of the salary one day and another part later, and always hearing the same explanation: that the company is doing badly.

That fear is very common. Especially when you depend on that wage to live and you fear that claiming it will make things worse. But a company with liquidity problems still has obligations. If your contract says you are paid on the 5th, that date matters. It is not merely indicative. And if the delay keeps happening, you do not have to resign yourself to it.

In Milagros’s case there are two different problems, and it is useful to separate them from the outset:

• On the one hand, there are monthly salaries directly outstanding: all of July and August.
• On the other hand, there are months paid late: since January, many times outside the agreed date, and in several months with delays exceeding fifteen days or with split payments.

That means Milagros can not only think about claiming what is missing. She can also review month by month whether she is entitled to claim interest for having been paid late. And, if the situation reaches the level of seriousness set by law, she can consider a compensated termination of the contract. That expression sounds technical, so I will translate it right away: it means asking the judge to declare the contract terminated due to a serious breach by the company, but with the same compensation as for an unfair dismissal.

Late Salary in Spain: What the Law Says About When and How You Must Be Paid

Let us go back to Milagros. If her contract sets the 5th as the payment date, the company cannot move that date because of habit, convenience, or because “this month is a bad time.” The rule starts there: with what was agreed.

“Settlement and payment of wages shall be made punctually and documented on the agreed date and at the agreed place or in accordance with custom and practice. The period of time to which the payment of periodic and regular remuneration refers may not exceed one month. The worker and, with the worker’s authorization, the worker’s legal representatives, shall be entitled to receive advances on account of work already performed without waiting for the designated payment date to arrive.”

Put simply: the company must pay you promptly, on the agreed date, and regular payment periods cannot be longer than one month. In addition, the Workers’ Statute (Estatuto de los Trabajadores) recognizes your right to prompt payment of the agreed or legally established remuneration.

In practice, this dismantles a very widespread idea: there is no sort of general permission to delay a payslip by a few days “without consequences” just because the company gives notice or because it has always been done that way. If the salary was supposed to be paid on the 5th, that is the reference point.

In Milagros’s story, the company is breaching that obligation. Not once, but repeatedly. And the fact that in some months it pays in two installments does not fix the problem either if the full salary is not paid when due.

The 10% Interest for Each Delay

When Milagros is told “we will pay you later,” it may seem that all that remains is to wait for the principal amount. But the law adds something else: default interest. In this context, “default” means delay in payment. It is a legal surcharge for not paying wages when due.

“Interest for delay in the payment of wages shall be ten percent of the amount owed.”

That 10% applies to the wage amounts owed. Therefore, Milagros can claim:

• the two outstanding monthly salaries for July and August, and
• 10% default interest on those amounts, as well as the corresponding interest for the months that the company paid late.

This is important because many people only ask for “what is missing” and leave out the interest. If you are paid late, the problem does not disappear just because the money eventually arrives. The delay itself can also be claimed.

In cases like Milagros’s, it is worth reviewing payslip by payslip and comparing the agreed date with the actual date the money reached the bank account. That shows clearly what was paid late, what is still unpaid, and what interest may be due.

Advances: You Can Ask for What You Have Already Worked

Imagine that Milagros is halfway through the month, has already worked a large part of her shifts, and does not have enough money to make rent. The law gives her another tool: asking for an advance on account of work already performed.

This is not about asking in advance for future salary. It is about being paid before the usual date for part of what you have already worked. That right appears in the same article that requires prompt payment.

In a situation of ongoing delays, an advance does not solve the underlying problem. But it can ease a particularly difficult month. And it also makes something clear: salary is not a concession from the company. It is the consideration for work already done.

Three Monthly Salaries or Six Months of Delay: When You Can Leave With Compensation

This is Milagros’s big question: “Can I leave without losing everything?” The short answer is: sometimes yes, but not by your unilateral decision alone. If the non-payment or delays reach a certain level of seriousness, you can ask the judge to terminate the contract. That means the contract ends because of the company’s breach, not because you resigned.

“Non-payment or continued delays in the payment of the agreed salary. Without prejudice to other situations that the judge or court may consider just cause for these purposes, there shall be deemed to be delay when the date set for payment of salary is exceeded by fifteen days, and the cause shall exist when, within a one-year period, the worker is owed three full monthly salary payments, even if not consecutive, or when there is delay in salary payment during six months, even if not consecutive.”

There are several key ideas here.

• Not every delay serves equally for every purpose. For these purposes, the law specifies that there is a delay when the set payment date is exceeded by fifteen days.
• The grounds are clear when, within one year, you are owed three full monthly salary payments, even if they are not consecutive.
• The grounds are also clear when there has been delay in payment during six months in one year, even if those months are not consecutive either.
• In addition, the provision itself leaves the door open for the judge to assess other situations as just cause.

Applied to Milagros’s case: if her salary was supposed to be paid on the 5th and in several months payment was completed after those fifteen days had passed, those months count when analyzing whether there is continued delay. And since in September all of July and August are still outstanding, there is already a serious situation. If, on reviewing the year, it is confirmed that she has accumulated six months of delays, or if it reaches three full unpaid monthly salary payments, she would have a clear basis to ask for judicial termination of the contract. In her case, she may already be close to or may even have exceeded that threshold, depending on the exact dates of each payment.

Very important: you do not “leave with compensation” just by notifying the company and that is it. The termination is declared by the judge. If granted, it gives entitlement to the compensation provided for unfair dismissal and also places the employee in a legal unemployment situation, so they can access unemployment benefit if they meet the requirements. If you want to better understand how that compensation works, you can read this guide on compensation for unfair dismissal.

In general terms, that compensation is the same as for unfair dismissal: 33 days’ salary per year of service, with a maximum of 24 monthly payments.

The Mistake to Avoid: Stopping Going to Work

When a company owes you money, it is easy to think: “Then I am not going back.” But that is precisely the mistake that can complicate everything.

As a general rule, while the claim is being processed and while the judge has not declared termination, you must continue providing services. If you stop going to work without legal grounds, the company may try to use that absence against you. And if you resign outright, you lose the route to compensated termination and, in addition, you do not become entitled to unemployment benefit because of that voluntary departure.

That does not mean you have to put up with any situation without doing anything. It means that the way to protect yourself is to make a proper claim, not to disappear. In serious situations, interim measures can be requested, and it will be the judge who assesses each case.

Milagros, therefore, should not use absence as pressure. The right approach is to document, claim, and, if necessary, file a lawsuit. In addition, claiming your rights cannot cost you your job as retaliation: a dismissal for having demanded your rights may be declared null and void.

How to Claim What You Are Owed and by When

Milagros does not need to start by arguing in the hallway or sending desperate voice notes every week. It is better for her to follow an order. When a claim is well prepared, it is easier to understand what is owed and since when.

• First, keep evidence. Payslips, bank statements showing the actual date of payment, and messages from the company or the supervisor.
• Then, make a written claim to the company. It is advisable to keep a record of which monthly salaries are outstanding, which payments arrived late, and what payment date had been agreed.
• If it is not resolved, file a conciliation claim form. This is the usual prior step before going to the labor court.
• If there is no agreement, file a lawsuit. It may be a claim for payment of sums due and, where appropriate, also for termination of the contract.
• In addition, a complaint can be filed with the Labor Inspectorate.

There is a deadline you should not let pass: wage amounts must be claimed within the one-year limitation period from the day each amount could be claimed. This is very important in delays that drag on, because each monthly salary has its own calculation period. Waiting too long can make you lose part of what could be claimed.

If you need help organizing dates, calculating what to claim, and deciding whether it is also advisable to seek termination of the contract, you can rely on Fernanda Vargas’s employment law service. Fernanda Vargas, employment lawyer in Madrid, can review with you the safest strategy based on your documents and your actual dates.

If the Company Cannot Pay: FOGASA

Sometimes the story ends worse: the company closes, enters insolvency proceedings, or is declared insolvent. At that point, many people think there is nothing left to do. That is not so.

If the company is declared insolvent or is in insolvency proceedings, the Wage Guarantee Fund, known as FOGASA, may pay, subject to limits, part of the outstanding wages and compensation. It does not automatically cover everything or do so in every way, but it can be a very important means of protection when direct recovery from the company is no longer viable.

If you want to see how it works in general terms, you can consult this explanation about FOGASA in Spain and how to claim.

For Milagros, this means something very specific: even if the company lacks liquidity or ends up insolvent, it is still useful to make a claim and have the amounts formally recognized. That step can be decisive in trying to recover payment through the appropriate route.

Action Timeline: From the First Delay to the End

When salary starts arriving late, there is no need to wait until you hit rock bottom to react. This outline can guide you.

Stage	What to Do
First delay	Keep the payslip, bank statement, and any messages. Check what the agreed payment date was and make a written record that the salary did not arrive on time.
If the delays are repeated	Start organizing, month by month, what was paid late, what was paid in two installments, and what is still outstanding. Do not normalize the situation.
After three months of problems	If there is already a clear pattern, make a written claim and consider filing a conciliation claim form so you do not keep accumulating debt without reacting.
If you are owed three full monthly salary payments in one year, or there are delays during six months in one year	Urgently consider a lawsuit for termination of the contract, in addition to the claim for sums due, because there may be grounds for the judge to end the employment relationship with compensation and unemployment benefit entitlement.
If the company closes or cannot pay	Do not write the money off as lost. Gather all the documentation, make a formal claim, and check whether FOGASA can intervene to cover part of the wages and compensation.

In Milagros’s story, the conclusion is clear: the company is breaching its obligation to pay promptly. She can claim the two outstanding monthly salaries, 10% default interest on the amounts owed, and also the interest for the months that were paid late. And if, on reviewing the year, it is confirmed that she already has three full unpaid monthly salary payments or six months of delays in the sense established by law, she may ask the judge to terminate the contract with compensation and unemployment benefit. In the meantime, the safest course is to keep working and make a proper claim.

Frequently Asked Questions

If they are paying you late, owe you monthly salaries, or you do not know whether you can already seek termination of the contract, speak as soon as possible with Fernanda Vargas, employment lawyer in Madrid. You can write via WhatsApp or book an appointment on Calendly.