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Severance pay (Abfindung) in Germany 2026 — when you get one and how much

Germany has no general statutory severance — but most dismissed employees still get one. We explain the three paths (§ 1a KSchG, Sozialplan, court settlement), the customary 0.5-month formula and why actual amounts range 0.25× to 1.0× per year of service.

Avtor: WorkDaten Editorial TeamObjavljeno: 2026-04-28Zadnja preglednica: 2026-04-28

Kaj se boš naučil

  • The three paths to a German Abfindung
  • Tax treatment: the Fünftelregelung
  • Negotiation tactics that actually work

The three paths to a German Abfindung

Path 1: § 1a KSchG offer. The employer issues a dismissal letter and offers a fixed Abfindung if the employee waives the 3-week deadline to file a Kündigungsschutzklage. The legal default is 0.5 monthly gross × years of service, but the employer can offer more. Once the deadline passes, you have nothing left to negotiate.

Path 2: Sozialplan. Required for mass redundancies (typically >20 dismissals at workplaces with >60 employees). The works council and management negotiate a collective severance scheme that all affected workers receive. Sozialplan amounts are usually higher than § 1a (often 0.75–1.5 monthly per year) because they're a collective agreement, not an individual offer.

Path 3: Kündigungsschutzklage settlement. You file the wrongful-dismissal lawsuit at the Arbeitsgericht within 3 weeks. In about 80% of cases, the court holds a Güteverhandlung where the parties settle. The settlement amount tracks the Faustformel but is heavily influenced by the strength of the dismissal grounds and your age + tenure.

Tax treatment: the Fünftelregelung

Severance is taxable income but qualifies for the Fünftelregelung (one-fifth rule), which spreads the lump sum over 5 years for rate purposes. This dramatically reduces the marginal-rate hit on a large severance.

There is NO special exemption — the entire severance is included in your annual income. With the Fünftelregelung, a €50,000 severance might cost you €18,000–€22,000 in tax (vs. €25,000+ without the rule).

Severance is also exempt from social-security contributions (Krankenkasse, Rente, Arbeitslosen-, Pflegeversicherung), which saves a further ~20% of the gross amount.

Negotiation tactics that actually work

Never accept a § 1a KSchG offer in the first 24 hours. Take it to a Fachanwalt für Arbeitsrecht (specialist labour lawyer) — even a one-hour consultation (€150–€250) can identify whether your dismissal grounds are weak enough to negotiate up.

Age multiplier: workers above 50 with 10+ years of tenure typically negotiate 0.75–1.0× per year instead of the 0.5× default — they're harder to re-employ.

Strong grounds for negotiation: pregnancy / parental leave / disability / works-council member status (all heavily protected); employer's failure to consult the works council; selection-criteria errors in mass redundancies.

Pogosto postavljena vprašanja

Kratki odgovori na najpogostejša vprašanja pred uporabo te strani kot referenco.

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