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📜 Severance Pay Calculator

Estimate your severance package using recognized N+1 and 2N formulas. See what you may be entitled to and walk into any negotiation with real numbers.

Employment Details

$
Your gross monthly base salary (excluding bonuses, commissions, etc.)
Total years worked at the company
$
Average of last 12 months' salary including regular bonuses

Additional Factors

If paid in lieu of notice

📖 Usage Examples

💼 Mid-Level Manager: Standard Layoff

James, earning $6,500/month with 8 years of service, is laid off due to restructuring.

1N = 8 years, base monthly = $6,500
2N pay: 8 × $6,500 = $52,000
3+1 month: +$6,500
N+1 Total: $58,500 · Plus 10 unused vacation days: +$2,955

⚓ Wrongful Dismissal: 2N Scenario

Maria, 6 years at $4,800/month, was dismissed without cause. Her average 12-month salary is $5,300.

12N formula: 2 × 6 × $5,300
2= 12 × $5,300
3Note: 2N applies for unfair dismissal only
2N Maximum: $63,600 · Compare to N+1: $28,800

📅 Senior Employee: Maximizing Package

Robert, 15 years at $9,200/month, is offered voluntary separation with enhanced terms.

1N+1: 15 × $9,200 + $9,200 = $147,200
22 months notice pay: +$18,400
320 unused vacation days: +$8,364
Total Package: $173,964 before tax

❓Frequently Asked Questions

📜 About the Severance Pay Calculator

This calculator models the two most widely applied severance formulas: N+1 and 2N. N represents your years of service, and the formula expresses your severance in months of salary. N+1 is the standard formula used in many jurisdictions for ordinary termination scenarios such as layoffs, redundancy, or mutual separation. 2N represents the maximum statutory compensation available in cases of wrongful, unfair, or constructive dismissal.

Beyond the core formulas, the calculator accounts for additional compensation that typically accompanies a separation: payout of accrued but unused vacation days (at your daily rate) and pay in lieu of notice. These components can significantly increase your total package and should never be overlooked when evaluating an offer.

Severance law varies dramatically by jurisdiction. The N+1 and 2N formulas are statutory in many countries, but they are not guaranteed by federal law in the United States, where severance is generally governed by company policy, employment contracts, or negotiation. The WARN Act requires 60 days of notice or pay for qualifying mass lays offs, but this is separate from severance.

Use this calculator to: estimate what a fair severance package might look like before entering negotiations, compare a voluntary separation offer against a recognized formula, understand how your years of service translate to potential compensation, and establish a negotiation baseline grounded in a standard methodology.