πŸ’Ό

Severance Pay Calculator (Multi-Country)

Estimate severance pay across jurisdictions: USA, UK, Canada, South Africa, and Australia β€” with the correct formula for each country.

🌍 Multi-Jurisdictionβœ” 5 Countries

πŸ’Ό Severance Pay Calculator (Multi-Country)

Results update instantly

πŸ‡ΏπŸ‡¦ SA
πŸ‡¬πŸ‡§ UK
πŸ‡ΊπŸ‡Έ USA
πŸ‡¨πŸ‡¦ Canada
πŸ‡¦πŸ‡Ί Australia
R
yrs
Estimated Severance Pay
R 0
Formula: 1 week Γ— completed years (SA BCEA)
Severance Pay
R 0
Weekly / Daily Rate
R 0/wk
Tax Treatment
Partial exemption
Effective Rate
0/yr
ℹ️ SA: first R500,000 exempt. UK: first Β£30,000 exempt. USA: fully taxable as ordinary income.

Severance Pay by Country

πŸ‡ΏπŸ‡¦ South Africa

Minimum 1 week per completed year of service (BCEA 1997). First R500,000 tax-exempt (lifetime cap). UIF benefits also available (up to 8 months).

πŸ‡¬πŸ‡§ United Kingdom

Statutory redundancy: 0.5 week (under 22), 1 week (22–40), 1.5 weeks (41+) per year, capped at Β£643/week and 20 years. First Β£30,000 tax-free.

πŸ‡ΊπŸ‡Έ United States

No statutory minimum β€” severance is contractual or at employer discretion. Typical: 1–2 weeks per year. Fully taxable as ordinary income.

πŸ‡¨πŸ‡¦ Canada

Employment Standards Act: 1 week per year (max 8 weeks). Common law may require more (up to 24 months for long-tenured employees). Tax varies by province.

πŸ‡¦πŸ‡Ί Australia

Fair Work Act: 1–16 weeks depending on service length (4 weeks for 1yr, scaling to 16 weeks for 9+ years). First $11,985 per year of service exempt (2024 cap).

Frequently Asked Questions

Tax treatment varies: South Africa β€” first R500,000 exempt (lifetime cap); UK β€” first Β£30,000 exempt; USA β€” fully taxable as ordinary income; Canada β€” varies by province, but generally taxable; Australia β€” genuine redundancy payments have a tax-free component.
Redundancy pay (UK/SA/AU term) is paid when a job is eliminated β€” it is a statutory entitlement. Severance pay (US term) is often a contractual or discretionary payment that may be paid for any separation, including voluntary resignation or mutual agreement. They serve the same economic purpose but may have different legal bases and tax treatments.
⚠️ Disclaimer Estimates only. Not financial or legal advice. Consult a qualified professional.