Severance Pay Calculator
Estimate a severance or redundancy payment from your length of service and pay. Because formulas differ by country and contract, this lets you set the weeks-per-year rate to match your situation.
How to use this calculator
- Enter your annual salary and years of service.
- Set the weeks of pay per year to match your contract or local law.
- Add a cap if your scheme limits total weeks.
Formula used
Severance is usually a number of weeks' pay per year of service. The weeks-per-year rate is the key variable and is set by law or contract — it differs hugely between countries, so this calculator lets you enter your own figure rather than assuming one.
Example calculation
50,000 salary, 6 years, 2 weeks per year: weekly pay = 962, × 12 weeks = ~11,538.
That's about 2.8 months of pay. A cap of, say, 20 weeks would only bite at longer service.
How severance is usually structured
Severance (or redundancy) pay compensates employees who lose their job through no fault of their own, and it's most often structured as a number of weeks' pay for each year of service. The rate — how many weeks per year — is where everything varies: some countries mandate detailed statutory formulas that also factor in age and service bands, others leave it largely to contract, and many impose caps on the total or on the weekly amount used.
Because of that variation, a universal severance figure doesn't exist, which is why this calculator asks you to supply the weeks-per-year rate that applies to you. Treat the result as a planning estimate: real entitlements depend on your jurisdiction, your contract, the reason for termination, and sometimes negotiation, and severance is often taxed differently from regular pay. For an actual figure and your rights, employment-law advice specific to your country is essential.
Why use this calculator?
- Estimate a redundancy or severance package.
- Set the weeks-per-year rate to match your own law or contract.
- See the payout in both cash and months of salary.
Frequently asked questions
How is severance pay calculated?
Typically as a number of weeks' pay per year of service: weekly pay (salary ÷ 52) times weeks-per-year times years worked. The weeks-per-year rate is set by law or contract and varies widely, so enter the figure that applies to you.
How much severance am I entitled to?
It depends entirely on your country, contract, length of service, age and the reason for leaving — there's no universal answer. Some places have statutory minimums and caps; others rely on contract terms. This gives an estimate; seek local legal advice for your actual entitlement.
Is severance pay taxed?
Usually yes, though often under different rules from regular salary, and some jurisdictions offer partial exemptions or favourable treatment up to a threshold. Tax handling varies by country — check local rules or a tax adviser, as this calculator shows gross amounts.