Severance Pay Calculator
Estimate your severance package based on your salary and years of service. This calculator uses common severance formulas to give you an idea of what you might receive, plus any PTO payout or bonus.
Disclaimer: This calculator provides a general estimate based on common severance practices. Actual severance may differ based on law, employment contract, collective agreements, or company policy. This is not legal or financial advice. Consult an employment attorney or HR professional for specific guidance.
How This Severance Calculator Works
This calculator estimates severance pay using the most common formulas employers use. You can choose between two calculation methods:
Weeks Per Year of Service
The most common severance formula. Your severance is calculated by multiplying your years of service by a set number of weeks per year. For example:
- 1 week per year: Standard formula used by many employers
- 2 weeks per year: More generous, common for professional positions
- Caps: Many employers cap severance at 26 weeks (6 months) or 52 weeks (1 year)
Fixed Number of Weeks
Some employers offer a flat severance amount regardless of tenure, such as 4 weeks or 8 weeks of pay.
Example Calculations
Example 1: Standard Formula
- Annual salary: $75,000 (weekly pay: $1,442)
- Years of service: 5 years
- Formula: 2 weeks per year of service
- Severance: 5 × 2 = 10 weeks × $1,442 = $14,420
Example 2: With Cap
- Annual salary: $60,000 (weekly pay: $1,154)
- Years of service: 15 years
- Formula: 2 weeks per year, capped at 26 weeks
- Calculation: 15 × 2 = 30 weeks → capped at 26 weeks
- Severance: 26 weeks × $1,154 = $30,004
Example 3: Hourly Worker with PTO
- Hourly rate: $22/hour, 40 hours/week (weekly pay: $880)
- Years of service: 3 years
- Formula: 1 week per year of service
- Severance base: 3 weeks × $880 = $2,640
- Plus unused PTO payout: $1,200
- Total severance: $3,840
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