Severance Pay Calculator
Estimate severance pay from your company's weeks-per-year formula or UK statutory redundancy pay.
About the Severance Pay Calculator
Many employers pay a set number of weeks' pay per year of service. In the UK, employees with 2+ years' service get statutory redundancy pay: half a week's pay for each full year under 22, one week from 22 to 40 and one and a half weeks from 41, counting up to 20 years. Weekly pay is capped at £751 from 6 April 2026 (maximum £22,530).
The formula
Severance = weekly pay × weeks per year × years
Worked example
Example: Severance pay = $17,820
- Inputs: Method: Weeks per year; Weekly pay: $990; Full years of service: 9 years; Weeks per year of service (company policy): 2 weeks; Age at redundancy (UK method): 50 years.
- Formula: Severance = weekly pay × weeks per year × years
- Result: Severance pay = $17,820
Questions people ask
Is severance taxable?
Usually yes as income, though the UK exempts the first £30,000 and some countries have their own reliefs.
Is severance required in the US?
No federal law requires it; it depends on contract or policy.