Work hours & pay
Severance pay calculator
Enter your pay, how long you have worked and the weeks of pay awarded per year of service to see the total severance.
A common formula is one to two weeks of pay per year worked. Set the rate to match your contract or local rule.
How severance pay is calculated
Most severance formulas multiply a weeks-per-year factor by your years of service to get a number of weeks of pay, then multiply that by your weekly salary. The steps are: find your weekly pay (monthly pay is converted with monthly × 12 ÷ 52), multiply years of service by the weeks awarded per year, then multiply the resulting weeks by weekly pay. For example, $1,000 a week after 8 years at two weeks per year gives 16 weeks, so 16 × $1,000 = $16,000. Dividing 16 weeks by 4.33 weeks per month shows the payout covers about 3.7 months.
If you are paid monthly, enter the monthly figure and switch the pay period; the calculator converts it to a weekly rate first so the week count stays meaningful. Years of service can include a half year, which many policies round in the employee's favour.
| Years worked | At 1 week/year | At 2 weeks/year | At 3 weeks/year |
|---|---|---|---|
| 3 | 3 weeks | 6 weeks | 9 weeks |
| 5 | 5 weeks | 10 weeks | 15 weeks |
| 10 | 10 weeks | 20 weeks | 30 weeks |
| 20 | 20 weeks | 40 weeks | 60 weeks |
Reading your estimate
This figure is a starting point, not a legal entitlement. In the United States there is no federal law requiring severance; it comes from your contract, an employee handbook, or a negotiated separation agreement. Many statutory schemes elsewhere set a floor, such as one week per year, and employers often pay more for senior or long-serving staff. A useful sanity check is the months-covered line: it tells you how long the payout would replace your income while you look for the next role.
Before signing, read how the package treats accrued vacation, bonuses, health cover and the notice period, since those can be separate from the severance weeks. A lump sum and salary continuation are taxed differently in many places, so the gross total here is not what lands in your account. Severance is often negotiable, especially the number of weeks, so treat a first offer as an opening position and compare it against the weeks-per-year your peers received.
Frequently asked questions
How many weeks of severance pay is normal?
A widespread guideline is one to two weeks of pay for every year of service, though senior roles and some countries use more. Your contract or local labour law sets the actual minimum.
Is severance pay based on gross or net salary?
Severance is usually calculated on gross pay, before tax. Enter your gross weekly or monthly figure here; the amount you receive will be lower once withholding is applied.
Does severance pay include my notice period?
Not always. Pay in lieu of notice is often a separate amount on top of severance. Check whether your offer lists notice, accrued leave and severance as distinct lines.