Employment Law

Severance Pay Calculator

Estimate typical severance packages based on your years of service, position, and weekly pay.

Free to Use No Data Stored Updated April 2026

Severance Pay Calculator

Fill in the fields below to get your estimate

Your gross weekly salary (before taxes). If paid annually, divide by 52.

How is Severance Pay Calculated?

While severance pay is often given at the employer’s discretion, most modern companies follow an established formula based on your position level and your tenure at the company. This calculator uses standard industry multipliers to estimate a typical package.

Standard Multipliers

  • Standard Employees: Usually receive 1 week of pay per year of service.
  • Managers & Directors: Often receive 2 weeks of pay per year of service.
  • Executives (C-Suite, VP): Typically negotiate 3 to 4 weeks (or more) per year of service.
Warning Before You Sign

If your employer offers severance, they will almost certainly require you to sign a general release of claims. This means you surrender your right to sue them for discrimination, wrongful termination, or unpaid wages. Always bring the agreement to an employment attorney to ensure you aren't leaving money on the table.

Frequently Asked Questions

Under federal law (the Fair Labor Standards Act), employers are generally not required to provide severance pay. However, you may be legally entitled to it if there is a written contract, union agreement, or an established company policy.

A standard severance package usually offers 1 to 2 weeks of pay for every year worked. Executives and senior managers often negotiate much more—up to a month of pay per year of service, plus continued health benefits and outplacement services.

Yes, absolutely. Especially if you are over 40 (protected by the ADEA) or if you are being asked to sign a release of legal claims (a separation agreement). Never sign a release of claims without having an employment attorney review it first.

It depends on your state. In some states, receiving a lump-sum severance does not affect your unemployment benefits. In others, you cannot receive unemployment until your severance period has run out. Check with your state's department of labor.

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