Severance Pay Calculator
An employee dismissed after a year or more is generally entitled to severance pay of one month's salary per year worked. This calculator gives a quick estimate and explains the key cases.
Who is eligible
An employee dismissed after at least 12 months is entitled to severance. Certain resignations (a material worsening of terms, relocation, health, after childbirth) may also qualify.
How it is calculated
The basic formula: last monthly salary × years of employment (partial years pro-rated). This calculator is based on that formula and provides an estimate.
Section 14
When employment is under a full Section 14 arrangement, the employer's ongoing pension/severance deposits constitute the severance — the amount is accrued in the fund, usually with nothing extra owed at termination.
What to check
Which salary components count (base + fixed additions), the dismissal letter, and the final-account date. In a dispute, consult a labor lawyer.
Enter a salary and valid dates to calculate.
Estimate only, based on last salary × tenure, and assumes eligibility (dismissal or a resignation that entitles to severance). Not legal advice.
FAQ
Is an employee who resigned entitled to severance?
Generally no, but there are exceptions that entitle to severance — resignation due to a material worsening of terms, relocation for a spouse, health reasons, or resignation after childbirth.
Are bonuses and overtime included?
The basis is usually the "determining salary" — base pay and fixed additions. Variable payments like bonuses and overtime are typically excluded.
What happens if the employer is late paying severance?
Severance paid more than 15 days after the due date is considered "severance-payment delay" (הלנת פיצויים). A delay of 16–30 days entitles the employee to CPI linkage; a delay beyond 30 days entitles them to a delay penalty of roughly 20% per month. The shortfall can be claimed at the Labor Court.
Can an employer withhold or reduce severance pay?
Not unilaterally. Under Sections 16–17 of the Severance Pay Law, severance may only be withheld or reduced in cases of serious misconduct, and only through a collective-agreement mechanism or a Labor Court ruling.
Sources
Estimate only — not legal advice. For an exact figure and complex cases, consult a labor lawyer.