How much severance pay do you get?

6 October 2026 · Calcosmo editorial team

It depends entirely on where you work. In the US, severance is not required by federal law; when it is offered, one to two weeks' pay per year of service is a common range. In the UK, statutory redundancy pay is based on age and years of service, with weekly pay capped at £751 from April 2026. In the Netherlands, every dismissed employee gets a transition payment of ⅓ of a monthly salary per year; calculate it with the Dutch severance pay calculator.

United States: a matter of contract

No federal law requires employers to pay severance. Whether you get it depends on your employment contract, a company policy, a union agreement or what you negotiate when you leave. Common practice:

• 1 to 2 weeks of pay per year of service, often with a minimum (for example four weeks) and a maximum (for example 26 weeks);
• continued health insurance for a period, or a contribution toward COBRA premiums;
• more for executives, whose contracts often specify several months' pay.

Severance usually comes with a release agreement, in which you give up the right to sue the employer. If you are 40 or older, federal law gives you at least 21 days to consider such an agreement (45 days in a group layoff) and 7 days to revoke it after signing.

The WARN Act requires larger employers to give 60 days' notice of mass layoffs and plant closings. It requires notice, not severance, but employers that skip the notice can owe back pay for the notice period.

United Kingdom: statutory redundancy pay

If you have worked for your employer for at least two years and are made redundant, you are entitled to statutory redundancy pay. For each full year of service, counted back from the date your employment ends:

Service is capped at 20 years, and weekly pay is capped at £751 for redundancies on or after 6 April 2026 (£783 in Northern Ireland). The maximum statutory payment is £22,530.

Example: you are 45 and have worked for the company for 10 years, earning £600 a week. Four years at age 41 or over give 6 weeks, six years at 35 to 40 give another 6 weeks. 12 weeks × £600 = £7,200. The first £30,000 of a redundancy payment is generally tax-free.

Many employers offer enhanced redundancy pay on top of the statutory minimum; check your contract and staff handbook.

Netherlands: the transition payment

Dutch employees have a legal right to a transitievergoeding from their first working day, whenever the employer ends or does not renew the contract:

transition payment = ⅓ × monthly salary × years of service

The monthly salary includes the 8% holiday allowance, fixed bonuses and regular allowances. Part years count proportionally. The maximum in 2026 is €102,000, or one year's salary if that is higher.

Example: €4,000 gross a month plus 8% holiday allowance = €4,320. A third is €1,440 per year of service, so after 10 years the payment is €14,400 gross.

Negotiating a better package

Whatever the country, severance is often negotiable, especially when the employer wants a quick, clean exit. Points to raise: the number of weeks per year, the notice period (paid garden leave or payment in lieu), unused vacation, bonuses already earned, outplacement support and a neutral reference. Get legal advice before signing a settlement agreement; in the UK a settlement agreement is only valid if you have received independent legal advice.