When your employer cannot pay, the wage guarantee fund (FOGASA)

Key rules

• Wage cap: The fund pays up to 120 days of unpaid wages, with a daily amount capped at twice the daily minimum wage.
• Deadline: You must apply within one year of the judgment, conciliation agreement or insolvency recognition of the debt.
• Severance: Severance is paid on a 20-days-per-year basis and cannot exceed one year of salary.
• Formal title: You need a conciliation agreement, judgment, order or insolvency recognition before the fund will pay.

What the fund pays

If your employer is insolvent, in a concurso or has been declared insolvent, FOGASA pays part of what you are owed. It covers two things: unpaid wages and severance. It does not cover self-employed people.

Wage limit

The fund pays up to 120 days of unpaid wages, with a daily amount capped at twice the daily minimum wage. The cap includes the share of extra payments spread across the year. The minimum wage is set every year, so the cap in euros changes. Check the current figure with FOGASA.

Severance limit

The fund covers severance for objective dismissal, collective dismissal, and unfair dismissal that is recognised in conciliation or by a judge. It also covers contract terminations you request because of serious employer breaches.

• The fund calculates severance at 20 days per year of service. If your unfair dismissal compensation is higher, the fund pays only the 20-day figure.
• The same daily cap applies to your salary.
• The total cannot exceed one year of salary.
• When a temporary contract simply ends, the fund pays 12 days per year of service.

You can ask your employer, or claim in the insolvency, for any amount above the fund's limits. The fund will not pay it.

How to claim

1. Get a title for the debt. This is a conciliation agreement, a court judgment or order, or, in an insolvency, recognition of your debt in the proceedings. The fund cannot pay on a debt that nobody has formally recognised.
2. Gather your papers. The documents list below shows what to bring.
3. File your application. You can file online with a digital certificate or Cl@ve, in person at a provincial FOGASA office or a registry, or by post.
4. Wait for the review. The fund may ask for more documents. It then issues a resolution to pay or to deny.

Deadline

You must apply within one year of the judgment, conciliation agreement or insolvency recognition of the debt. Write down that date as soon as you have it. Filing a claim in court or conciliation restarts the one-year clock. Where the clock starts can differ by type of case, so confirm your date with FOGASA or a labour lawyer if you are close to the limit.

The timeline, documents, checklist and questions below walk you through the rest.

Timeline and deadlines

• Get the title for your debt: a conciliation agreement, a judgment or order, or recognition of the debt in the insolvency proceedings: before you apply to the fund

• Collect your documents and the application form: before you file

• File your application with the fund: within one year of the conciliation agreement, judgment or order, or the insolvency recognition of the debt; for severance, one year from the date of the qualifying act

• If you file a claim in court or conciliation, the one-year clock restarts: from the moment the limitation period is interrupted

• The fund reviews your file and may ask for more documents: after you file

• The fund issues a resolution to pay or to deny: after it reviews your file

Documents you need

• Your ID or NIE (foreigner's identity number).

• The FOGASA application form.

• The title for your debt: the conciliation act from the conciliation service, the court judgment, or the order.

• The certificate of the insolvency or court proceedings.

• Your payslips or a settlement calculation showing what you are owed.

• Your employment contract.

• Your bank account number, for the payment.

Checklist

• Confirm that your employer is insolvent, in a concurso (insolvency proceedings) or declared insolvent.

• Compare what you are owed with the fund's limits on wages and severance, set out in the main article above.

• Collect your ID or NIE, payslips, employment contract, proceedings certificate and bank account number.

• Send any extra documents the fund asks for after it reviews your file.

Frequently asked questions

What if my unfair dismissal compensation is higher than the fund's figure?

The fund pays only the 20-day-per-year figure when your unfair dismissal compensation is higher. Your daily salary is capped at twice the daily minimum wage, including the prorated extra payments, and the total is capped at one year of salary. The employer still owes you the difference.

Does the fund pay when a temporary contract simply ends?

Yes, when a temporary contract expires the fund pays the statutory 12 days of salary per year of service. The same daily cap applies as for other severance.

Can I apply to the fund online?

Yes, you can apply online on the fund's electronic office with a digital certificate or Cl@ve. You can also apply in person at a provincial office or a registry, or send the application by post.

Does going to court or conciliation restart the one-year clock?

Yes, filing a claim in court or conciliation interrupts the limitation period and the one-year clock restarts. Even so, apply as soon as you hold your judgment, agreement or insolvency recognition.

Can I claim from the fund if I am self-employed?

No, the fund covers employees whose employer is insolvent or in a concurso, not self-employed people. Amounts above the legal caps are also not covered.