How the calculation works
Your daily wage is your monthly salary divided by 26 working days. For each of the first five years you get 15 days of that wage; from year six each year adds a full month's salary. The law caps the total at one and a half years' pay. Partial years count proportionally, and the wage used is your last salary.
Resigning? The entitlement shrinks
If you resign under an unlimited contract: under 3 years of service you get nothing, 3 to 5 years gets half, 5 to 10 years gets two-thirds, and past 10 years you receive the full indemnity. Termination by the employer or contract expiry always pays in full.
Common mistakes
Don't use the 10-days-per-year figure — that formula is for daily and hourly-paid workers, not monthly salaries. And remember unpaid absence days can be excluded from service length. For the binding figure, check with the Public Authority for Manpower before signing any settlement.