Severance Pay Calculator: Estimate a Typical Range After a Layoff
Federal law does not require any employer to pay severance. What you’ll actually get depends entirely on your employer’s policy or your specific agreement, but most severance packages follow one of a few common conventions tied to years of service.
Enter your numbers below to see the typical range.
Key takeaways:
No federal law requires severance pay. The WARN Act requires advance notice of a mass layoff, not a severance check.
The most common private-sector convention is 1 to 2 weeks of pay per year of service, but this varies widely by employer and is never guaranteed.
A severance arrangement can pay out up to 2x your prior year’s annual compensation, completed within 24 months, before federal rules start treating it like a pension plan instead of a simple payout.
Your signed severance agreement is the only document that controls what you’re actually owed. This tool only estimates a typical range.
Estimate a typical severance range
If you’re paid a salary, divide your annual salary by 52.
Enter your years of service and weekly pay to see an estimate.
At 1 week per year of service
At 2 weeks per year of service
Typical range
This reflects the most common private-sector convention, not a legal requirement. Your actual offer could be higher, lower, or $0, depending entirely on your employer’s policy or your signed agreement.
No federal statute requires severance. The WARN Act (29 U.S.C. ยง 2102) only requires 60 days' advance notice of a mass layoff, not a check. If your employer offers severance, it's company policy or a negotiated agreement, not a mandate.
One federal boundary exists: under 29 CFR 2510.3-2(b), a payout can go up to twice your prior year's pay, completed within 24 months, before it starts getting treated as a pension plan instead of a simple payment.
Frequently asked questions
Is my employer required to offer me severance? No. There's no federal law requiring severance pay for an ordinary layoff or termination. Some employment contracts, union agreements, or state laws create an exception, so check your own agreement first.
Does signing a severance agreement waive any of my rights? Often, yes. Most severance agreements include a release of legal claims against the employer in exchange for the payment. Read it carefully, and see the severance packet article linked above before signing.
Can severance pay affect my unemployment benefits? In some states, yes, severance paid as a lump sum or spread over time can delay or reduce unemployment benefits during the period it covers. Check with your state unemployment office before assuming you can collect both at once.
Disclaimer:This tool provides a general estimate for informational purposes only and is not financial or legal advice. Severance pay is not required by federal law and varies entirely by employer. Consult your signed agreement or a licensed employment attorney for guidance specific to your situation.
