Severence Pay

Elle

I am going to update our severance policy and am not sure if the amount we give is enough or maybe too little. I know that severance is something that the employer voluntarily does but I would like to know what the 'going rate' is?

Does anyone a guideline I can use.

Thanks.

NaeNae55

I believe I read somewhere recently that the average is one week severance per year worked. There is often a maximum attached.

Also read that many companies double this severance amount for management (again, with a maximum payout).

We offer one week per full year worked. We do not offer management more.

Hope this helps.

hr traci

Our policy is that we pay severance only to managers or to employees with 10+ years of service. The amount is one week salary for each year of service.