Severance pay calculator

How severance pay is worked out

The law sets one formula.

Severance pay = average daily wage × 30 × (days worked ÷ 365)

Only one part of that is hard: the average daily wage. It is everything you were paid over the three months before you left, divided by the number of days in that period. Months have different lengths, so this is easy to get wrong by hand — the calculator above does that part for you.

What counts as wages

• Base pay and allowances — what you actually received over those three months, before tax.
• Bonuses — only 3/12 of the total you received in the year before leaving. That is one year’s bonus shared out over three months.
• Pay for unused annual leave — 3/12 of the leave pay you received in the previous year.

Money you receive every month as a fixed amount — a meal allowance, a vehicle allowance — is wages. Money that reimburses what you spent (travel costs settled against receipts) is not.

When the average wage comes out lower than the ordinary wage

If you were absent, sick, or laid off during those three months, your average wage drops. For exactly that case the law says to use the ordinary wage instead (Labor Standards Act, Article 2(2)). Whichever is higher is the one that applies.

Many people are paid less than they should be because they do not know this. If there were days you did not work in those three months, fill in the “ordinary daily wage” box.

Who can receive it

• You must have worked one year or more without a break in employment.
• Your contracted hours must average 15 hours or more a week over four weeks.
• It does not matter whether you are permanent, on a fixed-term contract, or part-time. The same applies to foreign workers. If you did the work, you are covered, whatever your status of stay.

The employer must pay within 14 days of the date you leave. That deadline can be extended only by agreement between you both.

If the amount is different

If the calculator’s result differs from what your employer paid, first gather your payslips and your employment contract. Then:

1. Ask the company in writing to show how they worked out the figure.
2. If there is no answer, or the explanation does not add up, file a complaint with the Ministry of Employment and Labor. Claims for unpaid wages expire after three years.
3. You can get advice on 1350 (Ministry of Employment and Labor) — free, with several languages available. For anything about your status of stay, 1345 (Immigration Contact Center) answers in your own language.

Neither line asks about your visa status.

Where the calculation happens

Everything is worked out inside your own browser. The dates and amounts you type are never sent to a server and are never stored.

This calculator is a tool for checking, yourself, whether what you were paid looks right. It is not legal advice, and the amount actually owed can differ depending on your employment rules, collective agreement or contract. If you need a firm answer, check with the lines above or with a certified labor attorney or lawyer.