Severance Pay Calculator: How Much Severance Should I Get?
The market convention is 1–2 weeks of pay per year of service — more for managers and executives. No federal law requires severance at all; only New Jersey and Maine mandate it, and only for covered mass layoffs. Enter your details below for a typical range and the statutory rights that apply to you.
Enter your salary, years of service, seniority level, and state to see the estimate. The toggles refine your statutory rights.
How much severance should I get?
Severance follows a weeks-per-year-of-service convention, scaled by role level. The table below shows the typical ranges employers use. Executives frequently negotiate flat packages of 3–12 months instead of a per-year formula.
| Seniority tier | Low | High |
|---|---|---|
| Hourly / non-exempt | 0.5 weeks/year | 1 weeks/year |
| Salaried professional | 1 weeks/year | 2 weeks/year |
| Manager / director | 1.5 weeks/year | 3 weeks/year |
| Executive | 4 weeks/year | 4.33 weeks/year (~1 month/year; flat 3–12 month packages also common) |
Is severance required by law?
No federal law requires severance pay. Absent a contract, a company policy, or a covered state layoff, the legal minimum is zero — which is exactly why severance is a negotiation, not an entitlement. The statutory exceptions are narrow and specific:
| Law | Who it covers | What it requires | Citation |
|---|---|---|---|
| Federal WARN Act | Employees in covered mass layoffs or plant closings at employers with 100+ employees | 60 days' advance written notice; employees denied notice may be owed up to 60 days of back pay | 29 U.S.C. § 2101 |
| New Jersey mandatory severance | Employees in covered mass layoffs (50+ employees) at employers of 100+ | 1 week of severance per year of service, plus 4 additional weeks if the required 90-day notice was not given | N.J.S.A. § 34:21-1 et seq. |
| Maine mandatory severance | Employees with 3+ years of service in covered closures and mass layoffs at establishments of 100+ | 1 week of severance per year of service, payable within one pay period | 26 M.R.S. § 625-B |
| OWBPA (federal) | Workers age 40+ asked to sign a severance agreement releasing age-discrimination claims | 21 days to consider the agreement (45 days in group layoffs) and 7 days to revoke after signing — or the age-claim waiver is unenforceable | 29 U.S.C. § 626(f) |
How is severance calculated?
Weekly pay (annual salary ÷ 52) × the weeks-per-year convention for your tier × years of service. A salaried professional at $80,000 with 5 years of service: $1,538/week × 1–2 weeks × 5 years = roughly $7,700–$15,400. Bonuses, commission balances, equity vesting, and COBRA continuation are separate line items — each negotiable, and often worth more than the cash severance itself.
What are my rights if I’m over 40?
The OWBPA (29 U.S.C. § 626(f)) gives workers 40 and older a mandatory 21 days to consider any severance agreement that waives age-discrimination claims (45 days in group layoffs), written advice to consult an attorney, and 7 days to revoke after signing. A non-compliant waiver is unenforceable — the deadline pressure in a severance meeting is manufactured, and for workers over 40 it is also legally hollow.
Which states require severance pay?
Two. New Jersey mandates 1 week per year of service for covered mass layoffs (50+ employees at employers of 100+), plus 4 additional weeks if the required 90-day notice was not given (N.J.S.A. § 34:21-1 et seq.). Maine mandates 1 week per year of service for employees with 3+ years of service in covered closures and mass layoffs at establishments of 100+, payable within one pay period (26 M.R.S. § 625-B). Both apply to mass layoffs only — no state requires severance for an ordinary individual termination.
Frequently asked questions
How much severance should I get?
The market convention is 1–2 weeks of pay per year of service. Hourly and non-exempt roles typically land at 0.5–1 week per year, salaried professionals at 1–2 weeks, managers and directors at 1.5–3 weeks, and executives at roughly a month per year of service — with flat 3–12 month packages also common at the executive level. Company policy, the circumstances of the separation, and the strength of any legal claims you would be releasing all move the number.
Is severance required by law?
Usually not. No federal law requires severance pay, and almost no state does either — severance is a matter of contract, company policy, and negotiation. The narrow exceptions: New Jersey mandates 1 week per year of service for covered mass layoffs at employers of 100+ (N.J.S.A. § 34:21-1 et seq.), and Maine mandates the same for employees with 3+ years of service in covered closures at establishments of 100+ (26 M.R.S. § 625-B). Separately, the federal WARN Act requires 60 days' notice — not severance — for covered mass layoffs, with back pay owed if notice is denied.
How is severance calculated?
Most employers calculate severance as a number of weeks of base pay per year of service, set by role level. Take your annual salary, divide by 52 to get your weekly pay, then multiply by the weeks-per-year convention for your tier and your years of service. A salaried professional earning $80,000 with 5 years of service would typically see 5–10 weeks ($7,700–$15,400). Bonuses, commissions, equity treatment, and benefits continuation (COBRA) are calculated separately and are equally negotiable.
What are my severance rights if I am over 40?
The Older Workers Benefit Protection Act (OWBPA, 29 U.S.C. § 626(f)) requires that any severance agreement waiving age-discrimination claims give you at least 21 days to consider it (45 days in a group layoff), advise you in writing to consult an attorney, and give you 7 days to revoke after signing. If the agreement does not meet these requirements, the age-claim waiver is unenforceable — you could sign, keep the money, and still bring an ADEA claim. Employers know this, which is why the review period is a legal entitlement, not a courtesy.
Which states require severance pay?
Only New Jersey and Maine mandate severance, and only for covered mass layoffs — not individual terminations. New Jersey requires 1 week per year of service for mass layoffs of 50+ employees at employers of 100+, plus 4 extra weeks if the required 90-day notice was missed. Maine requires 1 week per year for employees with 3+ years of service in covered closures and mass layoffs at establishments of 100+. In every other state, severance is contractual, not statutory.
Related coverage
- Severance agreement negotiation — what to look for in the release of claims, the OWBPA requirements, and how to counter every term.
- Non-Compete Enforceability Checker — severance agreements often include or broaden a non-compete; check whether yours is even enforceable before trading it away.
- What counts as wrongful termination — the strength of the claims you would be releasing is the core of your negotiating leverage.
- Employment law pillar — retaliation, discrimination, FMLA, and the rest of the picture.
This calculator provides general estimates based on market conventions and current statutes at time of authoring. It is not legal advice, does not create an attorney–client relationship, and is not a substitute for a licensed attorney in your jurisdiction. Actual severance depends on your contract, company policy, the circumstances of separation, and the strength of any claims you would release. Consult an employment attorney before signing any severance agreement.