Severance Calculator
| Tenure | Market norm (folklore, not law) | Reality check |
|---|---|---|
| Under 1 year | 0-2 weeks | often a token week or none |
| 1-5 years | 2-8 weeks | 1-2 weeks per year is the common anchor |
| 5-10 years | 8-16 weeks | benefits continuation enters the talk |
| 10+ years | 12-26+ weeks | executive packages run on different math |
Use this the week the offer letter arrives: enter your weekly base pay and years of service, set the weeks-per-year multiplier to your company's formula or the market norm, and see the package that math produces - before you sign whatever is on the table.
The first thing to know is that nothing forces the number to exist: under the Fair Labor Standards Act, severance is entirely a matter of agreement - no federal law requires an employer to pay any of it. That is not a reason to take the first figure; it is the reason the market norms (one to two weeks per year of service, more with tenure) are the only yardstick, and why the package is negotiable in every direction - money, health continuation, PTO payout, outplacement, and what your reference says.
How to use
- Enter your weekly base pay - base only; bonuses are a separate negotiation unless your offer references them.
- Enter years of service, then set the weeks-per-year slider to the company formula or the 2-weeks norm.
- Read the package, then benchmark: the per-year-served and share-of-annual-pay numbers are what you quote back.
Frequently asked questions
How much severance should I get?
Market folklore runs one to two weeks per year of service for rank-and-file roles - two weeks per year is the most common anchor - with longer-tenured employees often reaching eight to sixteen weeks or more, and executive packages on entirely different math. Under one year, offers are frequently a token week or nothing. None of it is legally required, which is why the norms, not the law, do the work.
Is my employer required to pay severance?
No - the Department of Labor is explicit that the FLSA does not require severance pay; it is a matter of agreement between employer and employee. The exceptions are contractual: an employment agreement, a union contract, or a written policy the company applies consistently. If none exist, the only leverage is the negotiation - and the norms on this page.
Is severance negotiable?
Almost always, and rarely on money alone: the standard package trades up with health continuation, a payout of unused PTO, outplacement services, extra weeks for waiving claims, and - the quiet one - agreed reference language. Companies negotiate because litigation risk is the alternative; a specific, norm-anchored counter at two weeks per year is the classic opening.
Can I collect unemployment while receiving severance?
It depends on your state: some offset unemployment benefits week-by-week while severance payments run, some treat a lump sum as income in the week received, and a few ignore it entirely. Ask how your state treats it before you agree to be paid over time versus in a lump sum - the same total can be worth meaningfully different amounts once benefits enter the math.
How is severance taxed?
As ordinary wage income - the IRS treats it as supplemental wages, so withholding often runs at a flat supplemental rate and can leave the January surprise of owing more. Benchmark the offer in gross terms, but plan the runway on the after-tax number; the weeks-of-cover figure only survives contact with the tax bill if you shave roughly a quarter off first.