How much does FOGASA pay in 2025 and when does it pay after a company goes bankrupt?

FOGASA is one of those institutions that provide fundamental protection to all workers, but to which all of them would prefer not to have to resort at any time in their professional life. Even so, there are times when there is no choice but to do so, so here we want to explain to you what exactly it is, how much it pays in 2025 and how long it can take to resolve your request.

What is FOGASA?

The Wage Guarantee Fund (FOGASA) is an autonomous administrative body attached to the Ministry of Labor and Social Economy. According to article 31 of Law 16/1976 on Labor Relations, it is an institution that guarantees the payment of workers' salaries in the event of the insolvency of employers.

Simply put, FOGASA is a public institution that guarantees the payment of salaries and indemnities to workers hired by companies that, because they are in a legal situation of bankruptcy or insolvency, are unable to pay them.

Imagine that you work for a company and that, due to the loss of clients and an economic crisis in the sector, it stops paying your salaries. In this case, you can turn to FOGASA to pay you these amounts. At least, in part, since the laws governing this institution establish a series of limits, as we will see below.

Which workers can benefit from FOGASA?

FOGASA is an institution that protects all employees who have been employed by a company or a community of goods. It also covers those who have been employed by a temporary employment agency (ETT). In any case, they must have been registered in a social security scheme.

And which ones are not?

Having clarified the above, you will not be able to benefit from FOGASA if you are a self-employed worker, a domestic employee or a civil servant.

Requirements for a worker to benefit from FOGASA

Unfortunately, FOGASA is not an automatic mechanism that allows the worker to collect the amount of wages owed by their employer as soon as the non-payment occurs. For this to happen, one of the following circumstances must first arise..

FOGASA and insolvency

In order for a worker to be able to collect the wages and compensation owed to him/her in this way, the insolvency situation must first be recognised by a judge. To do so, those affected must initiate a claim before the courts, either individually or collectively.

Once the judge declares the insolvency of the company, he will proceed to seize its assets. If these are not sufficient to satisfy the payments owed to the worker, then a request for payment will be made to FOGASA.

FOGASA and insolvency proceedings

In the event that the company is in insolvency proceedings, FOGASA can take charge of the payment of the salaries, as this institution is also designed to help the continuity of businesses in a delicate economic situation.

In order for workers to be able to initiate the procedure, they must request a certificate from the insolvency administrator acknowledging the debt contracted by the company.

What does FOGASA pay?

First of all, FOGASA pays the worker's conventional salaries with the corresponding special payments, if they were not prorated in the payroll. The same applies to the so-called processing wages, which are those that, in the case of null dismissal, the employer must pay to the employee between the time the employment relationship was terminated and the date on which the employee was reinstated.

However, FOGASA does not cover any allowances included in the employee's salary, such as distance and danger bonuses or per diems, whatever their type.

On the other hand, FOGASA also covers compensation recognised by judgement, order or judicial conciliation act, as well as those arising from an ERE or ERTE. However, it is not responsible for those recognised by administrative conciliation by individual agreement between the company and the worker.

How much does FOGASA pay?

To clarify how much FOGASA pays for company closure, it is necessary to differentiate between salaries and compensation. Let's take a look.

Wages

FOGASA's coverage covers a maximum of twice the minimum interprofessional wage (SMI) for a maximum period of 4 months (120 days).

In 2025, the SMI is 1,184 euros per month, which would correspond to 46.04 euros per day. If we multiply this figure by two, we find that the maximum daily amount paid by FOGASA is 92.08 euros. And, if we multiply that figure by 120 days, we conclude that the maximum payment a worker can receive from FOGASA this year is 11,049 euros for wages owed.

Compensation

In this case, FOGASA also applies the rule of double the SMI, but with a time limit of one year, i.e. 365 days. If we multiply 92.08 euros by 365 days, we find that the maximum compensation that FOGASA can pay you in 2025 is 33,152 euros.

Both in the case of severance pay and wages, if the amount owed is greater than the amount established in these maximum amounts, the worker will lose it. Even so, at least part of it will be recovered.

How long does FOGASA take to pay? Procedure and deadlines

The first thing you should know is that you have a period of one year from the date of the court ruling, conciliation report or resolution of the labour authority to claim payment of the amounts owed to FOGASA. To do so, all you have to do is submit the official form available on the website of the Ministry of Labour and Social Economy, duly completed and together with all the documents requested.

You can submit this document at FOGASA's electronic headquarters or at the Administrative Unit of the Wage Guarantee Fund in each province in Spain. In any case, FOGASA has three months from the time you make the application to issue a positive or negative decision. If you do not receive a reply within this period, your request will be considered accepted by administrative silence.

The problem for many workers comes next, as there is no deadline set by law for the payment of wages and compensation by FOGASA. In many cases, payment can take between 6 and 12 months from the date of the resolution, which is a real problem for those in financial difficulties.

At this point, our advice is that you put yourself in the hands of a good labour lawyer during the whole process of claiming from FOGASA. This is the only way you will be able to fully defend your rights and collect the maximum possible amount of what you are owed. Contact our labour department and find out how we can help you.