Free tool
EU severance pay calculator
Pick your country, enter your monthly gross, your tenure and the dismissal reason — we apply the country-specific formula (Abfindung Faustformel for DE, indemnité légale for FR, finiquito for ES, TFR for IT, transitievergoeding for NL, etc.) and show the breakdown plus the official source. Conservative-by-design — never overpromises.
⚠ This is an estimate
The amount is computed using the country's standard statutory or customary formula. Your real entitlement depends on your collective bargaining agreement (CBA / convention collective / Tarifvertrag), the precise dismissal reason qualified by the labour court, and any negotiated settlement on top of statute. Always consult an employment-law specialist before signing or refusing any termination offer.
How we calculated it
- ›0.5 × monthly gross × years of service = 0.5 × €4,200 × 5
Country background
- Germany has NO general statutory right to severance pay (Abfindung). Severance is paid in three main scenarios: § 1a KSchG offer (employer offer to drop wrongful-dismissal claim), Sozialplan (works-council agreement on mass redundancy), or court settlement following a Kündigungsschutzklage.
- The customary 'Faustformel' is 0.5 monthly gross salaries × years of service, but this is just a benchmark — actual amounts range 0.25× to 1.0× per year depending on bargaining position, age, dismissal grounds and the local Arbeitsgericht's tendency.
- Severance under § 1a KSchG is income-tax-free up to certain limits (Fünftelregelung), and not subject to social-security contributions. Always check tax treatment with a Steuerberater before signing.
Important notes
- The 0.5 factor is the customary 'Faustformel'. Actual outcomes range 0.25–1.0× per year depending on bargaining position.
⚠ Read this before acting
- If you sign a § 1a KSchG offer, you waive your right to challenge the dismissal in court. Consider consulting a Fachanwalt für Arbeitsrecht (employment-law specialist) before accepting.
Legal disclaimer
WorkDaten provides this severance calculator for informational and educational purposes only. The estimates are based on the publicly available text of national labour laws as of January 2026 and do NOT constitute legal advice. Severance entitlement depends on your individual employment contract, the applicable collective agreement, the dismissal reason as legally qualified, and the bargaining outcome. Tax treatment of severance varies by country and by personal situation. We accept no liability for financial or legal decisions made based on this tool. Before signing any termination offer or settlement, consult a qualified employment lawyer in the relevant jurisdiction.
How severance differs across Europe
There is no single 'European' severance system. Germany has no statutory right at all — severance is paid only as a § 1a KSchG offer or court settlement. France gives a clear legal floor (1/4 month per year up to 10, 1/3 above). Italy's TFR is a savings account funded each month and paid out on any termination. Spain has two regimes (objetivo at 20 days/year and improcedente at 33). The Netherlands has the transitievergoeding (1/3 month per year, capped at €98k or one annual salary).
We model 10 EU jurisdictions with each one's specific formula and surface the official source so you can verify. The dismissal reason matters enormously — picking 'redundancy' vs 'serious misconduct' vs 'mutual agreement' changes the result dramatically in every country.
Use this for an honest first read. Then talk to an employment lawyer in the country whose law applies — every termination case turns on facts the calculator cannot see.
Frequently asked questions
Short answers to the questions people most often ask before relying on the page.
- Is severance taxable?
- It depends on the country and the type. Germany applies the 'Fünftelregelung' to soften progressive tax. France exempts the legal minimum portion (above is taxable). Italy taxes TFR at a separate flat rate. Spain exempts the legal minimum severance up to €180k (2026 cap). UK exempts the first £30,000 of statutory redundancy. Always check with a tax advisor — the exemption can vary by year and personal income.
- Can I lose my severance by signing a settlement?
- Yes — every settlement (Aufhebungsvertrag, rupture conventionnelle, vaststellingsovereenkomst, etc.) waives your right to litigate. In exchange you get certainty + speed, but you cannot later claim more. Always have a lawyer review the draft BEFORE signing. The 3-day cooling-off period in some jurisdictions (e.g. France's 15-day rétractation) is short — use it.
- What if I'm pregnant or on sick leave?
- Most EU countries have strong protected statuses. Germany prohibits dismissal during pregnancy/parental leave (Mutterschutzgesetz, BEEG); France requires authorisation by the inspecteur du travail; Spain provides nullity (despido nulo) with reinstatement. If your dismissal is declared null on these grounds, you typically don't get severance — you get reinstatement plus back wages. Talk to a specialised lawyer before accepting any offer.
- Why is German severance 'customary' rather than statutory?
- Germany's Kündigungsschutzgesetz protects against unfair dismissal but doesn't create a general right to severance. Instead, when an employer wants to avoid a costly Kündigungsschutzklage, they offer a settlement under § 1a KSchG (or directly during the court process). The 0.5 monthly × years 'Faustformel' is the average outcome, but actual settlements range 0.25–1.0× per year depending on dismissal grounds, age, and the local Arbeitsgericht's tendency.
- Are these calculations stored?
- No. Everything runs in your browser — country, salary, tenure stay on your device. We use no cookies, no analytics on this page, no signup. Your inputs are saved only in your browser's local storage so the form persists between sessions on YOUR device.