Severance and Notice Pay Calculator
Estimated severance and notice pay based on length of service and gross wage.
This calculator produces estimates for general information and does not constitute legal advice. Contact us for a definitive assessment of your situation.
How is severance pay calculated?
Severance pay amounts to 30 days’ wages, based on the employee’s last gross wage, for each full year of service; periods exceeding a full year are calculated pro rata. In addition to the base wage, regular payments such as transport, meal allowances and bonuses are also taken into account (the “gross-up” wage).
The wage used as the basis for severance pay may not exceed the severance pay ceiling in effect on the date of termination. Only stamp duty is deducted from severance pay.
Notice periods
- Employment of less than 6 months: 2 weeks
- 6 months – 1.5 years: 4 weeks
- 1.5 – 3 years: 6 weeks
- More than 3 years: 8 weeks
Notice pay is subject to income tax and stamp duty.