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Severance Pay Calculator 2025 – How Much Severance Will I Get in Germany?

Severance Pay Calculator Employment Law

Here you can calculate a possible severance pay for free.

Calculate Your Severance Pay After Dismissal or Termination Agreement

A severance pay calculator can estimate the amount of possible severance after dismissal by the employer or after a termination agreement, using the general severance formula commonly applied by German labor courts, including the Berlin Labor Court.

The result gives you an initial overview of your expected severance. Please note that, as a rule, there is no legal entitlement to severance after dismissal. In practice, however, severance is often paid after filing a dismissal protection claim, and the general formula is often the starting point for negotiations in court.

SEVERANCE FORMULA OF LABOR COURTS – SEVERANCE CALCULATION

On this page, you will find answers to your questions regarding severance calculation. Please note that all information does not replace legal advice, as every case is unique.

SPECIALIST EMPLOYMENT LAWYER A. MARTIN – BERLIN - Prenzlauer Berg / Pankow

Legal advice from a specialist employment lawyer is usually advisable after a dismissal.

  • Lawyer Andreas Martin | Specialist in Employment Law advises and represents clients from Berlin and Brandenburg in employment law, especially regarding severance and dismissal, and provides consultations in his employment law office (branch) in Berlin Prenzlauer Berg / Pankow.

Taxes on Severance Pay

How severance pay is taxed – find out here.

Why Use a Severance Pay Calculator?

A severance calculator offers the following advantages:

  1. Quick calculation: Get an estimate of your possible severance within seconds.
  2. Anonymity: No personal data required.
  3. Free to use: The service is usually free of charge.

Severance Pay Calculator - Calculate Here

Severance Calculator

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How to Use the Severance Calculator

Enter the required data to get an instant calculation. Our calculator uses standard formulas and gives you an estimate.

Negotiating with Your Employer

Use the calculation results to be better prepared for negotiations or to seek legal advice. My law firm is happy to assist you with all questions regarding employment law and severance pay. For a step-by-step English guide for expats, see Termination in Berlin – What to Do After a Kündigung?.

Legal Advice by a Specialist Lawyer

As a specialist lawyer for employment law, I personally advise my clients and attend hearings myself – no substitutes!

"Start date"

Please enter your first working day. The calculator determines the duration of your employment up to today (date of calculation).

"Monthly gross salary (€)"

Enter your last gross monthly salary. If your salary varies, use the average of the last three months. The gross amount is relevant, not net.

"Factor"

The default factor is 0.5. The calculator multiplies the duration of employment (in years) by the factor and your gross monthly salary. This is the general severance formula. In some industries or situations, a higher factor may be appropriate. You can adjust the factor using the plus and minus buttons.

"Calculate Severance"

Click the "Calculate Severance" button to get your result, including the calculation method.

Notes

This is not a binding calculation. In most cases, there is no legal entitlement to severance. The calculator is for orientation only.

File a Dismissal Protection Claim!

The best calculator is useless if you miss the 3-week deadline to file a dismissal protection claim after receiving your notice. Without this, there will usually be no severance negotiation.

Note

This calculator provides an initial estimate only. It does not replace legal advice from a lawyer!

Special Situations and the Severance Formula

When using the calculator, please note some special situations where the general formula may not apply, and severance is rarely offered by the employer.

These include:

stateDiagram-v2 Dismissal --> summary Dismissal --> MinimumProtection Dismissal --> MissedDeadline

Summary Dismissal

A summary dismissal is often combined with an ordinary dismissal. Employers rarely offer severance in such cases, especially if the employment relationship is strained.

Minimum Protection

Outside the Dismissal Protection Act (e.g., in small businesses or during probation), employees have weak protection and employers usually do not offer severance.

Low Chance of Severance

If the employer is likely to win in court, they will rarely offer severance.

Missed Deadline for Dismissal Protection Claim

Most severance payments are negotiated during the initial court hearing. If you miss the deadline, the employer has no incentive to offer severance.

Dismissal and Severance

After dismissal, file a dismissal protection claim within 3 weeks to keep your options open.

Termination of Employment

Employment can end by dismissal or termination agreement. Severance is possible in both cases, but a dismissal with a claim is usually better for unemployment benefits.

"Fünftelregelung" (One-Fifth Rule)

For taxation, the "one-fifth rule" can reduce your tax burden on severance payments.

Requirements for Financial Compensation

Severance is only paid if the employer faces a litigation risk. In many cases, it is a matter of negotiation.

ATTENTION

The above formula (0.5 gross monthly salaries per year of employment) is used by most German labor courts, not just in Berlin.

General Information on Severance Negotiations

General Severance Formula

The general formula is the starting point for negotiations. If you miss the deadline for a dismissal protection claim, the employer has no pressure to offer severance.

When Is There a Legal Right to Severance?

  • Social plan / works agreement,
  • successful application for dissolution in court,
  • employer's offer (e.g., after a redundancy under § 1a KSchG),
  • severance agreement with the employer (e.g., in a termination agreement)

Successful Severance Negotiation

A successful negotiation requires:

  • Knowing the legal situation
  • Understanding your chances
  • Negotiating with skill and experience

Principle: Severance Is Negotiable

Remember: The judge at the Berlin Labor Court does not usually award severance but may suggest an amount in the hearing. This suggestion is not binding.

Factors Affecting Severance Amount

The amount depends on:

  • Duration of employment
  • Age of the employee
  • Any disabilities
  • Any special protection
  • Employer's litigation risk
  • Employee's position
  • Degree of invalidity of the dismissal
  • Any fault of the employee
  • Employee's chances of finding a new job
  • Employer's willingness to re-employ
  • Likelihood of "withdrawal of dismissal" by the employer

Local Employment Law Services in Berlin

For employment law advice in other parts of Berlin, see:

ATTENTION

Legally, a dismissal cannot be withdrawn. This is interpreted as an offer to continue the employment relationship.

Taxation of Severance and the One-Fifth Rule

Below you will find information on severance taxation and the so-called "one-fifth rule".

How Is Severance Taxed?

Severance payments are fully taxable as extraordinary income. However, no social security contributions are due. The "one-fifth rule" can reduce the tax burden.

High Severance and Tax Burden

A high severance can increase your tax rate. If paid in one calendar year, the "one-fifth rule" can help reduce taxes.

What Is the One-Fifth Rule?

The rule spreads the tax effect over five years, reducing the immediate tax burden. This can prevent a high severance payment from pushing you into a higher tax bracket.

FAQ on the Severance Pay Calculator 2024

What is a severance payment under German employment law?

A severance payment is a financial compensation paid by the employer to the employee as compensation for the loss of employment.

What is a severance pay calculator?

A severance pay calculator is an online tool that helps you estimate your possible severance amount based on factors such as your salary and length of service.

How does a severance pay calculator work?

You enter your monthly salary and the length of your employment (in calendar years), and the calculator estimates a possible severance using the general formula: 0.5 gross monthly salary per year of employment. The 0.5 factor can be increased or decreased as desired. The length of service is calculated to the exact month.

Are the results of a severance calculator binding?

No, the results are estimates based on the general severance formula, which itself has no legal relevance. However, this formula is often used in severance negotiations.

Does an employee have a right to severance after dismissal?

No, there is no general right to severance after dismissal by the employer. This applies even in the case of redundancy. A right to severance exists only in rare cases. Nevertheless, employers often pay severance as part of a settlement or court agreement.

Why can't severance be calculated with certainty?

There is almost never a legal entitlement to severance. Therefore, it is not even certain whether severance will be paid at all. No one can predict the exact amount of severance—not even a specialist employment lawyer. One can only estimate the litigation risk and draw conclusions about a possible severance amount.

How can an employee obtain severance?

After a dismissal, the easiest way for an employee to obtain severance is by filing a dismissal protection claim. While the claim itself is not aimed at severance, but at establishing that the dismissal did not end the employment, there is often an opportunity to negotiate severance during the court hearing. However, there is no entitlement to this. Severance is often purely a matter of negotiation.

When will the employer usually not pay severance?

To put pressure on the employer, the employee must file a dismissal protection claim. The key factor is the litigation risk, i.e., the risk of losing the case in court. If the employer's litigation risk is low, they will usually not offer severance.

Where do the severance formulas come from?

Severance formulas were developed by labor courts for cases where the court must decide on the amount of severance under § 10 of the Dismissal Protection Act after a dissolution application. These formulas were developed only for this purpose and not as a general calculation tool for severance.

Is there a right to severance payment according to the formula?

No. The severance formulas are only applied if the court itself awards severance by judgment. This happens in the case of a dissolution application and is rare. The formulas are often used in settlement negotiations. Therefore, they have some significance, as negotiations often start with reference to the formula. Still, severance is usually a matter of negotiation, mainly based on litigation risk.

What are the criteria for the amount of severance?

The amount of severance after dismissal is purely a matter of negotiation. The employer will estimate the amount based on their litigation risk. An important factor is also how much the employer wants to part with the employee. Employers often see it as a loss of face if they lose the case and the employee returns. Criteria for the amount of severance include: 1. Duration of employment 2. Employee's position in the company 3. Gross salary 4. Employer's litigation risk / risk of default in acceptance 5. Probability of “withdrawal of dismissal” by the employer 6. Employee's age / chances on the job market 7. Employer's financial situation 8. Employee's disabilities 9. Employee's chances on the job market after dismissal

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