Severance Pay Calculator
Calculate severance pay based on tenure and salary
About this calculator
The Severance Pay Calculator helps employees and employers determine appropriate severance compensation based on job tenure and current salary. This tool considers various factors including years of service, position level, and industry standards to estimate fair severance packages. Whether you're negotiating a departure, planning workforce changes, or simply want to understand your potential severance entitlement, this calculator provides valuable insights into expected compensation during employment transitions.
How to use
Enter your current annual salary and total years of service with your employer. Select your job level or position type if applicable. The calculator will instantly compute your estimated severance pay based on common industry formulas and legal requirements, typically ranging from one to four weeks of pay per year of service.
Frequently asked questions
How is severance pay typically calculated?
Most companies offer 1-2 weeks of pay per year of service, though senior positions may receive 2-4 weeks per year depending on company policy and negotiations.
Is severance pay legally required?
Severance pay isn't federally mandated in the US, but some states have requirements. It's often provided through company policy, employment contracts, or negotiations.
What factors affect severance amounts?
Key factors include length of service, salary level, position seniority, company policy, reason for termination, and local labor laws or union agreements.