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How to Calculate Domestic Staff Severance

Severance or Finiquito

When you sell your home, you will need to severe the employment of all your staff (maid, gardener, etc.).  They can then be recommended and re-hired by the new home owner.  You need to calculate each employee’s severance or finiquito, which includes severance days owed, vacation pay and Christmas bonus or Aguinaldo.

We highly recommend keeping receipts of all yearly vacation pay and Christmas bonus (including gifts), signed by your staff member, as you may be held accountable for past years at the time of severance.

Your best bet is to talk to a local accountant. A good accountant will know how to calculate severence, christmas bonuses, etc.

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