Severance Pay Calculator
Calculate statutory severance or redundancy pay for the US, UK, India, Canada, and Australia based on salary, years of service, and age. Covers UK statutory redundancy pay, Indian gratuity (Payment of Gratuity Act), and Australian NES redundancy scale.
Did this tool work for you?
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 is the tool’s arithmetic, not legal advice; your contract, local rules and company policy decide what is payable.
Frequently asked questions
What does this tool calculate for each country?
This tool uses a different rule per country, all based on monthly salary. Weekly pay is monthly ÷ 4.33. UK: weeks by age band (0.5, 1 or 1.5 per service year) times weekly pay capped at 643. India: 15 ÷ 26 × monthly salary × years, capped at ₹20,00,000. Canada: weekly pay × years of service up to 8, with part-years counted. Australia: weekly pay × a weeks figure looked up from completed years. The United States returns no formula, only illustrations.
Does this describe what I am legally owed?
No. The multipliers, caps and eligibility thresholds are the figures built into this tool, including the “2024/25 rates” label on the UK line. Labels such as “Statutory” and the notes naming Acts are fixed text. Entitlement depends on country, contract, employer size and circumstances, so confirm with an official source or an adviser.
How does the UK age-band calculation work?
It counts each service year, up to 20, and gives that year 0.5 weeks if the age in that year was under 22, 1 week from 22 to 40, and 1.5 weeks from 41. Someone aged 45 with 6 years counts ages 40 to 45: 1 + 5 × 1.5 = 8.5 weeks. At the 643 weekly cap that is £5,465.50.
Why does the Australian amount fall at ten years?
Because the weeks scale in the tool runs 4, 6, 7, 8, 10, 11, 13, 14 and 16 for years 1 to 9, then 12 from year 10 onward. On a 6,000 monthly salary, 9 years gives 22,170.90 and 10 years gives 16,628.18. Under one completed year it returns 0 weeks.
What happens in India below five years or above the cap?
Below five years the result is “Not eligible”, with no amount. From five years, the formula applies and the amount is limited to ₹20,00,000, with the uncapped formula figure shown on its own line. For example, ₹9,00,000 a month over 30 years has an uncapped figure of ₹15,576,923.08 and a displayed amount of ₹2,000,000.00.
What does the United States option show?
The headline reads “None required”, followed by two illustrations: one week of pay per year of service and two weeks per year. At 5,000 a month and 5 years these are 5,773.67 and 11,547.34. They are simple multiples, not an entitlement or a typical amount.
What if salary or service is zero?
The amounts are 0.00. A UK result with 0 years has no weeks to pay, and an Australian result below one completed year shows 0 weeks. The age box only affects the UK calculation, and an age of 0, which is also what an emptied box becomes, falls back to 35.
What does the tool not include?
Notice pay, unused leave, bonuses, tax on the payment, enhanced contractual terms, small-employer rules beyond the printed note, and any allowance for salary above the UK weekly cap. It works from a single monthly figure and treats every month as 4.33 weeks.
Severance and redundancy sums: the arithmetic by country
From monthly salary to a lump sum
Every country branch turns monthly salary into weekly pay by dividing by 4.33, then multiplies by a number of weeks that depends on service. Only India uses a different structure, a fraction of monthly salary per year. The tool shows the intermediate pieces, such as the weeks counted and the weekly pay used, so you can see which input moved the answer.
Worked examples
A UK employee on 4,000 a month, aged 45 with 6 years, has weekly pay capped at 643.00 and 8.5 weeks, giving 5,465.50. On 2,000 a month at 60 with 25 years, only 20 years count, for 30.0 weeks and 13,856.81. An Indian monthly salary of ₹50,000 over 10 years gives ₹288,461.54, and a Canadian 5,000 a month over 3.5 years gives 4,041.57. Each came from running the calculator.
Australian weeks by completed years
These rows use a monthly salary of 6,000, which gives weekly pay of 1,385.68. The weeks column is the tool’s lookup scale, and the amount is that number of weeks times the weekly pay. Note that the step from 9 to 10 years moves down, from 16 weeks to 12, because the scale in the code is not monotonic.
| Completed years | Weeks | Amount |
|---|---|---|
| 1 | 4 | 5,542.73 |
| 2 | 6 | 8,314.09 |
| 3 | 7 | 9,699.77 |
| 4 | 8 | 11,085.45 |
| 5 | 10 | 13,856.81 |
| 7 | 13 | 18,013.86 |
| 9 | 16 | 22,170.90 |
| 10 | 12 | 16,628.18 |
Caps and thresholds in the code
Three limits are hard-coded: UK weekly pay is capped at 643 and counted service at 20 years, India’s amount is capped at ₹20,00,000 and needs five years, and Canadian weeks stop at 8. Entering a higher salary than the UK cap does not raise the UK result, while the other countries scale without limit until their own caps apply.
Use the output as an illustration
The figures are the tool’s arithmetic and may differ from your contract, local rules or employer policy. The result is before tax and excludes notice pay and other items. Compare it with any written offer, and treat differences as questions to raise rather than errors in either document. Re-running with a slightly different service length is a quick way to see how sensitive the amount is.
Learn more from an authoritative source:
InvestopediaLeave Value Calculator
Calculate the cash value of unused annual leave on termination or resignation. Enter your salary and unused leave days to find your payout entitlement across the US, UK, India, Canada, and Australia, including statutory leave entitlements by country.
Net vs Gross Salary Calculator
Estimate your annual take-home pay after income tax and social contributions based on your country and gross salary. Results are estimates — consult a tax advisor for precise figures.
Take-Home Pay Calculator
Estimate your take-home pay per pay period (monthly, weekly, or fortnightly) after income tax and social contributions. Covers US, UK, India, Canada, and Australia.
Disability Insurance Calculator
Estimate your monthly disability or income protection insurance premium based on income, benefit period, waiting period, and occupation risk class.
Closing Costs Calculator
Estimate total closing costs when buying a property, including taxes, fees, and prepaid items, across the US, UK, India, Canada, and Australia.
Realtor Commission Calculator
Calculate total real estate agent commission, per-agent split, and net proceeds to the seller based on sale price, country, and commission rate.
Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →