How to Use the Severance Pay Estimate Calculator
Unlike some countries, the United States has no federal law requiring employers to pay severance when an employee leaves — U.S. employment is generally "at-will," meaning either party can end it without a legally mandated payout. Any severance you receive typically comes from company policy, an employment contract, or a negotiated separation agreement, not a legal entitlement.
That said, many employers voluntarily offer severance using an informal industry benchmark: commonly one to two weeks of pay for every year of service, sometimes with a minimum guaranteed amount. This calculator lets you estimate a payout under either the 1-week or 2-week formula based on your weekly pay and tenure.
Because this is not a legal requirement, actual severance offers vary enormously by company, industry, seniority, and the circumstances of the departure (layoff vs. resignation, for example). Some situations — like mass layoffs at larger companies — may also trigger WARN Act notice-pay obligations, which are separate from voluntary severance. Always check your employee handbook or offer letter for your employer's actual policy.
Frequently Asked Questions
No. Under U.S. at-will employment, there is no federal law requiring employers to pay severance. Some companies offer it voluntarily as policy, and some state or contractual rules (like WARN Act notice pay) may apply in limited situations.
A common (but not universal) informal benchmark is one to two weeks of pay per year of service, sometimes with a minimum floor. Actual amounts vary widely by company, role, and circumstances of the departure.