Many companies offer severance pay calculated as a set number of weeks of salary per year of service, though the exact formula and whether severance is offered at all varies enormously by employer, seniority level, and circumstances of departure.
This calculator takes your annual salary, years of service, and your company's specific weeks-per-year-of-service formula (check your employee handbook or severance agreement for this figure) to estimate the total severance payout.
Unlike wages, severance pay isn't legally mandated in most of the US except under specific circumstances (like certain mass layoffs under the WARN Act) — always refer to your actual employer's stated policy or severance agreement rather than assuming a standard formula applies.
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Frequently asked questions
Is severance pay legally required?
In most of the US, severance pay isn't legally mandated except in specific circumstances like certain qualifying mass layoffs under federal or state WARN Act requirements — most severance is offered at employer discretion or per an employment contract.
Where do I find my company's specific severance formula?
Check your employee handbook, offer letter, or any severance agreement provided at the time of separation — formulas vary significantly between employers.