Severance Pay Calculator
Calculate statutory severance or redundancy pay based on your country, salary, years of service, and age.
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How to use this calculator
- 1
Select your country and enter your gross monthly salary.
- 2
Enter your total years of continuous service with your current employer.
- 3
UK employees: enter your age accurately — the calculation is age-banded.
- 4
The result shows your statutory minimum entitlement; your contract or company policy may provide more.
Frequently asked questions
Is severance pay taxable?
In most countries, statutory severance pay is taxable as income. In the UK, the first £30,000 of redundancy pay is tax-free. In India, gratuity up to ₹20 lakh is exempt for private-sector employees. Always consult a tax advisor for your specific situation.
What is the difference between severance pay and redundancy pay?
The terms are often used interchangeably. "Redundancy pay" is the UK/AU term for statutory compensation when a role is eliminated. "Severance pay" is the broader US/CA term, which may be contractual rather than statutory. Gratuity in India is a retirement benefit triggered by 5+ years of service.
Does the UK weekly pay cap change each year?
Yes. The UK government reviews the statutory weekly pay cap annually (usually each April). The 2024/25 cap is £643 per week. Check GOV.UK for the latest figure if you are calculating after April 2025.
Severance Pay Calculator — Statutory Entitlements by Country
Understanding Statutory Severance Pay
Severance pay -- also called redundancy pay, termination pay, or gratuity depending on the country -- is compensation paid to an employee when their employment is ended through no fault of their own. The amount and eligibility rules differ dramatically by jurisdiction. The United States has no federal statutory requirement, leaving it to employer discretion or contract. The United Kingdom uses an age-banded formula capped at 20 years and a weekly pay maximum. India's Payment of Gratuity Act provides a formula-based payment after five years of continuous service. Canada's federal Labour Code mandates one week per year (up to eight weeks), while Australia's Fair Work Act sets a sliding scale based on years served.
How This Calculator Works
Enter your gross monthly salary, years of service, and age (required for the UK). The calculator applies the statutory rules for your chosen country and outputs the minimum redundancy entitlement. For the UK, it applies the three age bands — 0.5 week per year under 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41 or over — capped at 20 years and the 2024/25 weekly pay limit of £643. For Australia, it uses the NES redundancy scale. For India, it applies the (15/26) × salary × years formula. Always check your employment contract, as employers may offer enhanced payments above the statutory floor.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →