Severance Pay Calculator
Enter your hire date, resignation date, and recent 3-month wages to calculate your severance pay.
Severance Pay Calculator FAQ
Is everyone eligible for severance pay?
It's paid to workers with 1+ year of continuous service whose scheduled weekly working hours average 15+ hours over any 4-week period. Under 1 year of service means you're not eligible for statutory severance pay.
How is severance pay calculated?
It's calculated as average daily wage × 30 days × (service days ÷ 365). Average wage is the total wages paid in the 3 months before resignation, divided by the total number of days in that period.
Are bonuses or leave allowance included in severance pay?
Yes. Your annual bonus and any leave allowance accrued before resignation that counts toward average wage are prorated over 3 months and included in the average wage calculation. This calculator's 'Annual bonus total' and 'Leave allowance included in average wage calculation' fields capture this.
Can I get an early/interim settlement of my severance pay?
In principle severance pay is only paid at resignation, but an interim settlement is allowed for exceptions defined by the Employee Retirement Benefit Security Act, such as buying a home as a non-homeowner, 6+ months of medical treatment for yourself or a dependent, or personal rehabilitation/bankruptcy.
By when must severance pay be paid after resignation?
Absent special circumstances, it must be paid within 14 days of the resignation date. The payment deadline can be extended by mutual agreement between the parties.
Severance pay = average daily wage × 30 days × (service days ÷ 365) is a reference figure only; the actual amount paid may differ based on your company's average wage calculation standards.