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Severance pay calculator

Enter the employee's average monthly earnings and the number of months the severance payment covers. The calculator works out the payout amount.

The minimum and how it's calculated depend on the reason for termination and local law — anywhere from a couple of weeks to several months; use whatever applies to your situation

Result

Severance pay amount

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Severance pay = average monthly earnings × number of months of severance. The formula itself is a simple multiplication — all the real complexity is in how many months (or weeks) an employee is owed, which depends on the reason for termination (layoff, business closure, mutual agreement) and a specific country's labor law.

That's why the number of months here is an editable field rather than a built-in standard: minimum guarantees vary a lot between countries and even between reasons for termination within the same country, and any figure baked into the calculator would only be correct for one specific case.

Average monthly earnings for this calculation is usually computed on the same principles as average daily earnings for vacation pay — over a set reference period, not simply the salary on the termination date.

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