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Severance Pay Calculator (Multi-Country)

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

🌍 Multi-Jurisdiction✔ 5 Countries

💼 Severance Pay Calculator (Multi-Country)

Results update instantly

🇿🇦 SA
🇬🇧 UK
🇺🇸 USA
🇨🇦 Canada
🇦🇺 Australia
R
yrs
Estimated Severance Pay
R 0
Formula: 1 week × completed years (SA FLSA)
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 £30,000 exempt. USA: fully taxable as ordinary income.

How to Use the Severance Pay Calculator

1

Select your country

Choose US, UK, South Africa, Canada, or Australia. UK and SA have statutory minimum formulas; US severance is contract-based with no federal requirement.

2

Enter your gross weekly or monthly pay

Input your regular pre-tax earnings. UK statutory redundancy caps weekly pay at £643 (2024/25, reviewed annually). SA uses one week's remuneration per completed year.

3

Enter your years of continuous service

Input your total unbroken employment period with this employer. UK applies age-weighted multipliers (0.5× under 22, 1× aged 22–40, 1.5× over 41). SA uses a flat 1 week per year.

4

Compare to your employment contract

The calculator shows the statutory minimum. Your contract, company policy, or collective agreement may entitle you to more. Always read your written terms before accepting any offer.

Severance Pay by Country

🇿🇦 South Africa

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

🇬🇧 United Kingdom

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

🇺🇸 United States

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

🇨🇦 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.

🇦🇺 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

Yes — severance pay is fully taxable as ordinary income in the US. Your employer withholds federal income tax (often at the 22% supplemental wage rate), Social Security (6.2% up to the annual wage base of $176,100 in 2024), and Medicare (1.45%). State income tax also applies in most states. You'll receive a W-2 reflecting severance as wages.
Redundancy pay (UK/SA/AU term) is paid when a job is eliminated — 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.
There is no federal law requiring severance pay in the USA. When offered, common amounts are one to two weeks of pay per year of service. Executive-level employees often negotiate higher severance through employment contracts. Some states have specific requirements for mass layoffs under the WARN Act. Always review your employment contract and company policy.
No. There is no federal law requiring severance pay in the US. Severance is only required if: your employment contract specifies it, a collective bargaining agreement requires it, or the employer's written policy promises it. However, the WARN Act requires 60 days notice (or 60 days pay in lieu) for mass layoffs of 100+ employees.
Yes. Severance pay is treated as ordinary income subject to federal income tax, Social Security (up to the wage base), and Medicare. Your employer will typically withhold at the flat supplemental rate of 22% (37% for amounts over $1 million). Severance received in a lump sum may push you into a higher tax bracket for that year.
The most common formula is 1–2 weeks of pay per year of service. Senior executives often negotiate 1 month per year. Packages frequently include: continuation of health insurance (COBRA subsidy), outplacement services, vesting acceleration of stock options, and non-disparagement agreements. Always review a severance agreement with an employment attorney before signing.
⚠️ Disclaimer Estimates only. Not financial or legal advice. Consult a qualified professional.

Sources & Methodology

Calculations are based on the most current publicly available data from authoritative government and industry sources: