Severance Pay Calculator
Instant calculation of severance pay based on last monthly salary and length of employment. Enter three values, get a result in under a second.
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Frequently asked questions
Who is entitled to severance pay?
An employee dismissed after working for the same employer (or at the same workplace) continuously for at least one year is entitled to full severance pay. There are also special cases where an employee who resigned is entitled — for example resignation due to material deterioration of conditions, relocation, or after childbirth.
How is severance calculated?
The standard formula is: last monthly salary × number of years of service. A partial year is paid pro-rata. The qualifying salary is the regular salary (usually including fixed components, excluding one-off bonuses).
What is the difference between regular severance and a Section 14 arrangement?
A Section 14 arrangement is an alternative under which the employer deposits a percentage of salary monthly into a pension fund or provident fund, and those deposits constitute the severance in lieu of the regular calculation. In that case, the accumulated amount in the fund is the full severance.
What if I worked less than a year?
In principle, there is no full statutory entitlement if you worked less than 12 months. However, exceptions exist — for example an employee dismissed shortly before completing a year specifically to avoid payment, or a contract granting severance for shorter periods. Consult a labor lawyer.
Is the calculator amount net or gross?
The amount shown is gross (pre-tax). Part of severance pay is tax-exempt up to the ceiling defined in Section 9(7a) of the Income Tax Ordinance (for 2026, roughly one month's salary per year of service, up to an annual ceiling). The remainder is taxable. For an exact net calculation, consult an accountant or tax advisor.