What severance should I expect?
Severance Pay Calculator
Estimate a typical severance offer from your salary and years of service, using the formulas employers commonly negotiate.
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Your severance estimate
Enter your salary and years of service to compare common severance formulas.
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Informational estimate, not legal, tax, or financial advice. Why? Hide
This calculator uses the information you enter and publicly available government data. Real situations can involve employment contracts, company policy, collective bargaining agreements, and exceptions we can't see.
For advice about your specific situation, talk to a licensed employment attorney or your state labor department.
The short answer
Severance pay is generally not legally required in the US. No federal law, including the FLSA, requires it. It is usually offered voluntarily, or because an employment contract, union agreement, or written company policy promises it. New Jersey and Maine are notable exceptions: their state laws require severance in certain covered mass layoffs or closings.
A common starting point is about 1 week of pay per year of service, roughly 2 weeks per year for senior or manager roles, and executives often negotiate 3 to 12 months of base salary. These are norms, not entitlements.
Worked example: an $85,000 salary with 5 years of service is about $8,173 at 1 week per year (about $1,635 a week × 5 weeks). Severance is taxed as ordinary income, with federal, Social Security, Medicare, and state withholding.