Severance Pay Calculator
Estimate a severance package from your pay and tenure. Enter your salary, your years of service and how many weeks of pay you earn per year, and the calculator totals the weeks and the payout.
How to use the severance pay calculator
- Enter your annual salary, or switch to enter weekly pay directly.
- Enter your completed years of service and the weeks of pay granted per year.
- Add a cap on total weeks if your policy has one, then read the estimated severance.
Examples
10 years at two weeks per year on 52,000
annualSalary: 52000, yearsOfService: 10, weeksPerYearOfService: 2
Weekly pay 1,000, 20 weeks, severance 20,000
Frequently asked questions
How is severance pay calculated?
A common formula multiplies your weekly pay by a number of weeks based on tenure. If your policy grants two weeks of pay per year of service and you have ten years, that is 20 weeks. Multiply 20 weeks by your weekly pay for the total. Weekly pay is your annual salary divided by 52.
What does the weeks cap do?
Many policies limit severance to a maximum number of weeks, such as 26. If your calculated weeks exceed the cap, the calculator pays only the capped number of weeks and flags that the cap applied.
Is severance pay required by law?
It depends on your country, state and contract. Some jurisdictions mandate statutory redundancy or severance pay, while in others it is set by the employer or a negotiated agreement. This tool is a general estimate, not legal advice.
Is severance taxed?
Usually yes. Severance is generally treated as taxable income and may have payroll taxes withheld. The figure here is gross, before any tax. Check with a tax professional for your situation.
Is my information private?
Yes. The calculation runs entirely in your browser. Your salary and service details are never sent to a server or stored.
Related tools
Notice Period Calculator
Enter your resignation date and notice period in days to find your exact last working day, plus the calendar and working days you will serve.
Gratuity Calculator
Calculate gratuity online under the Payment of Gratuity Act. Enter last drawn salary and years of service to see your gratuity and eligibility.
Take Home Pay Calculator
Estimate your net pay from gross income. Enter an effective tax rate and other deductions to see take home pay, tax and deductions, yearly or monthly.
Pay Raise Calculator
Calculate your new salary after a pay raise. Enter your current salary plus a raise percent or flat amount to see the increase and monthly difference.
Annual Leave Calculator
Calculate accrued annual leave pro rata. Enter your full-year entitlement and the share of the year worked to see accrued and remaining days.
Appointment Letter Generator
Create a formal employee appointment letter in seconds. Fill in role, salary, joining date, probation and notice, then copy, download or print it.