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Severance Pay Calculator — Estimate + WARN Act Check

Estimate severance pay from weekly pay or salary, years of service, and a weeks-per-year rate. Includes a WARN Act notice check.

No US federal law requires severance pay. This calculator estimates what a common voluntary formula would produce — your actual severance depends entirely on your employer's policy, your employment contract, a collective bargaining agreement, or applicable state law. This is not legal advice.

Severance Pay Estimate

Typical range: 1 week (junior roles) to 2+ weeks (senior/executive roles).

Estimated Severance
$15,000
10 weeks of pay at $1,500/week

WARN Act Notice Check (Informational Only)

The WARN Act requires advance written notice of a covered layoff or plant closing — it does not require severance pay. This section only flags whether the notice requirement likely applies; it is not legal advice.

Used to test the 33%-of-site-workforce rule for partial layoffs.

WARN Act notice requirement likely applies

Employer size clears the 100-employee threshold. The layoff size clears the mass-layoff trigger (50+ employees and at least 33% of the site, or 500+ regardless of percentage).

With 0 day(s) of written notice given against the required 60, the shortfall is 60 day(s) (≈8.57 weeks). Estimated "pay in lieu of notice" for that shortfall: $12,857.14. This is compensation for the missing notice period, not severance pay itself.

Severance estimate = Weekly Pay × (Years of Service × Weeks per Year of Service). This mirrors the common 1–2 week per year of service industry benchmark, not a legal formula. WARN Act pay-in-lieu estimate = Weekly Pay × (Notice Shortfall Days ÷ 7), covering only the portion of the required 60-day notice period that wasn't given. Employees age 40+ signing a severance agreement release are also entitled under OWBPA to at least 21 days to consider it (45 days for group layoffs), plus 7 days to revoke after signing. Always confirm the exact terms against your employer's actual policy, your written agreement, or an employment attorney.
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Reference Values

Last verified:
Category Range What It Means Status
No federal severance mandate $0 required by law US federal law does not require any employer to pay severance. Severance exists only when a company policy, individual employment contract, or collective bargaining agreement (CBA) promises it — and formal written severance plans can additionally fall under ERISA, which governs how the plan must be administered. Poor
Typical industry benchmark 1–2 weeks of pay per year of service The most common voluntary severance formula cited in SHRM's compensation guidance — not a legal requirement, just what employers commonly offer. Good
Junior / entry-level roles ≈1 week per year of service Lower end of the typical range, most common for individual-contributor or early-career positions. Okay
Senior / executive roles ★ 2+ weeks per year of service Higher end of the typical range; executive severance packages sometimes add a flat lump-sum multiplier on top of the per-year formula. ★ Best
WARN Act advance notice ★ 60 calendar days written notice The WARN Act requires advance written notice of a covered plant closing or mass layoff — it does not require severance pay itself. Missing the notice creates back-pay liability for the shortfall period, which functions like 'pay in lieu of notice.' ★ Best
WARN Act employer size threshold 100+ employees Covers employers with 100 or more employees, excluding employees who worked fewer than 6 months in the last 12 months or who average fewer than 20 hours/week. Good
WARN Act mass layoff trigger 50+ employees at one site (or 33% of site workforce), or 500+ regardless of percentage A 'mass layoff' is triggered at a single employment site when it affects 50 or more employees making up at least 33% of the active workforce there, or 500 or more employees regardless of percentage. Good
WARN Act plant closing trigger 50+ employees at a single site A covered 'plant closing' is the shutdown of a single site (or one or more facilities/operating units within a site) resulting in job loss for 50 or more employees. Good
OWBPA individual consideration period ★ 21 days to consider + 7-day revocation Under the Older Workers Benefit Protection Act, employees age 40+ signing an individual severance agreement must get at least 21 days to consider it, plus 7 days after signing to revoke. ★ Best
OWBPA group layoff consideration period ★ 45 days to consider + 7-day revocation For group layoffs or exit incentive programs, employees age 40+ must get at least 45 days to consider the agreement, plus the same 7-day revocation window. ★ Best

Source: US Department of Labor — Plant Closings and Layoffs (WARN Act) guidance and WARN Advisor FAQs (dol.gov); SHRM severance pay benchmarking guidance; EEOC Older Workers Benefit Protection Act (OWBPA) guidance.

Worked Examples

Mid-Level Employee, Standard 2-Week Rate

Weekly Pay
$1,500
Years of Service
5
Rate
2 weeks per year of service
$15,000 (10 weeks of pay)

$1,500 × (5 × 2) = $1,500 × 10 weeks = $15,000. This is a voluntary employer estimate, not a legal entitlement — always confirm against the actual severance policy or agreement.

Junior Employee, 1-Week Rate

Weekly Pay
$800
Years of Service
3
Rate
1 week per year of service
$2,400 (3 weeks of pay)

$800 × (3 × 1) = $800 × 3 weeks = $2,400 — the lower end of the typical 1–2 week industry benchmark, common for entry-level roles.

Executive Severance From Annual Salary

Annual Salary
$180,000
Years of Service
8
Rate
2 weeks per year of service
≈$55,384.62 (16 weeks of pay)

Weekly pay = $180,000 ÷ 52 = $3,461.54. Severance = $3,461.54 × (8 × 2) = $3,461.54 × 16 weeks ≈ $55,384.62. Executive packages sometimes add a further lump-sum on top of this base formula.

WARN Act Likely Applies — Pay in Lieu of Notice

Employer Size
250 employees
Employees Laid Off at Site
80 (of a 200-person site)
Weekly Pay
$1,500
Written Notice Given
None
WARN notice requirement likely applies; ≈$12,857.14 pay-in-lieu estimate for the 60-day window

250 employees clears the 100-employee threshold, and 80 of 200 site employees (40%) clears the 50-employee/33% mass-layoff trigger. With zero notice given, the 60-day notice period converts to ≈60/7 = 8.57 weeks of back pay: $1,500 × 8.57 ≈ $12,857.14. This is separate from any severance the employer's own policy might additionally owe.

WARN Act Does Not Apply — Small Employer

Employer Size
60 employees
Employees Laid Off
20
WARN notice requirement does not apply (employer below the 100-employee threshold)

The WARN Act only covers employers with 100 or more employees, regardless of layoff size. At 60 employees, this employer falls outside WARN's scope entirely — any severance here would come only from company policy or contract.

How to Use This Calculator

  1. 1

    Enter your pay

    Choose weekly pay or annual salary — annual salary is automatically converted to a weekly figure (Annual ÷ 52).

  2. 2

    Enter years of service and a weeks-per-year rate

    Default rate is 2 weeks per year of service; adjust down toward 1 week for junior roles or up for senior/executive roles.

  3. 3

    Read your severance estimate

    Shows total weeks of pay and the estimated dollar amount — an estimate only, not a guaranteed entitlement.

  4. 4

    Check the WARN Act section (optional)

    Enter employer size, layoff size, and notice days actually given to see whether the 60-day notice rule likely applies and estimate the pay-in-lieu-of-notice amount if it wasn't fully given.

What Each Value Means

Severance Estimate (US dollars ($))
Weekly Pay × (Years of Service × Weeks of Pay per Year of Service) — an estimate based on the common 1–2 week per year of service industry benchmark, not a legally guaranteed amount.
WARN Act Notice Requirement (yes/no flag)
Whether a layoff or plant closing likely triggers the WARN Act's 60-day advance written notice requirement, based on employer size and layoff size thresholds.
Pay in Lieu of Notice (US dollars ($))
Estimated back pay owed for the portion of the WARN Act's required 60-day notice period that was not actually given in writing.

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Frequently Asked Questions

Is severance pay legally required?
No. There is no US federal law that requires an employer to pay severance to a laid-off or terminated employee. Severance exists only when your employer's written policy, your individual employment contract, or a collective bargaining agreement (CBA) promises it. Formal written severance plans can additionally be governed by ERISA, which controls how the plan must be administered and how claims are handled — but ERISA doesn't create the entitlement itself. A few states and some local ordinances add narrow exceptions (for example, mass-layoff notice laws), so always check your specific state's rules too.
What's the difference between severance pay and a WARN Act notice?
They're not the same thing. The Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to give 60 calendar days of advance written notice before a qualifying plant closing or mass layoff — it is a notice requirement, not a severance requirement. If an employer skips or shortens that notice, the law creates a back-pay and benefits liability for the missing notice days, often called 'pay in lieu of notice.' That penalty can look like severance in practice, but it's legally a remedy for violating the notice rule, separate from any severance the employer's own policy might separately owe.
How is severance pay typically calculated?
The most common voluntary industry formula, per SHRM's compensation guidance, is 1–2 weeks of pay per year of service — roughly 1 week for junior or entry-level roles and 2 or more weeks for senior or executive roles, sometimes with an additional flat lump sum for executives. There's no universal formula and employers aren't required to use this one; it's simply the most frequently cited benchmark. Your actual amount depends entirely on your employer's policy or your signed agreement.
Does the WARN Act apply to every employer and every layoff?
No. WARN generally covers employers with 100 or more employees (not counting employees who worked fewer than 6 months in the past year or who average under 20 hours a week), and only for a 'mass layoff' or 'plant closing' of a certain size — roughly 50 or more employees at a single site, and for a mass layoff (rather than a full site shutdown) that number must also equal at least 33% of the site's active workforce, unless 500 or more employees are affected regardless of percentage. Smaller employers and smaller layoffs generally fall outside WARN entirely, though some states have their own 'mini-WARN' laws with lower thresholds.
If I'm over 40, how long do I have to review a severance agreement before signing?
Under the Older Workers Benefit Protection Act (OWBPA), employees age 40 or older must be given at least 21 days to consider an individual severance agreement that includes a release of age-discrimination claims, or at least 45 days if it's offered as part of a group layoff or exit incentive program. In both cases, you also get 7 days after signing to revoke your acceptance. Signing before the consideration period ends is allowed, but you should never feel rushed — review any release carefully, ideally with an employment attorney, before signing.