Severance Pay Calculator

About this calculator

Severance pay formulas typically scale with tenure: Severance = Years of service × Weekly salary × Weeks granted per year of service, where the "weeks per year" multiplier is set by company policy, employment contract, or in some jurisdictions by statute — commonly ranging from half a week to two or more weeks of pay for every year worked.

HR departments and employment lawyers use this calculation when structuring layoffs and drafting severance agreements, since the weeks-per-year multiplier is exactly the variable that gets negotiated in individual exit packages, executive contracts, or collective bargaining agreements, while the underlying tenure-times-salary structure stays the same.

Employees estimating what a layoff package should include, HR professionals budgeting for workforce reductions, and job seekers comparing severance terms across offers all use this formula to turn years of service and salary into a concrete expected payout before signing anything.