Severance Pay Calculator
Calculate severance payment and notice period based on monthly salary, years of service, and reason for termination (layoff, resignation, or retirement).
How to Use the Severance Pay Calculator
- Enter the monthly salary.
- Enter years of service.
- Select the reason for termination.
- Click Calculate to see severance amount and notice period.
Casos de Uso
- •Calculating severance obligations during workforce reductions.
- •Planning HR budget for termination packages.
- •Advising employees on expected severance entitlements.
- •Comparing severance scenarios for different termination reasons.
Fórmula
Severance = salary × min(years, 12) × multiplier. Multiplier: layoff=2, retirement=1, resignation=0.5.
Preguntas Frecuentes
How is severance pay calculated?
Severance typically depends on years of service and salary. Layoffs usually receive the highest severance, followed by retirement and resignation.
Is severance pay taxable?
Severance pay is generally taxable as income. Some countries offer tax exemptions for severance up to a certain threshold.
What is the notice period?
The notice period is the required advance notice before termination. Layoff requires 2 months notice; resignation and retirement typically 1 month.