Online net severance calculator
Calculate taxes on your severance pay now
for 2022

Severance calculator


Your expected settlement amount is as follows

0 €. *

The chances of getting a fair settlement are much higher with a lawyer.

* The above amounts do not constitute a legal assessment but are indicative.

How much is my severance pay?

The amount of severance pay is generally not regulated by law, but can be predicted for many cases using our severance pay calculator. The amount of the settlement depends largely on the negotiating skills of the individual parties. 

It also plays a role whether the notice given is legally contestable. As a general rule, each employment relationship is unique and must therefore be considered on its own merits.

Bear in mind that the expertise and negotiating skills of an expert can often result in a severance payment that is 1.5 to 2 times higher. With the free severance calculator, you will already receive a first indication of an appropriate severance amount.

Calculation basis for the severance pay calculator

We have used current labour law court decisions and settlements from the past as the basis for calculating our severance pay calculator. 

This collected data provides the assessment basis for our severance pay calculator to give you an informed estimate of the possible amount of your severance pay.

Formula for the severance pay calculator in the event of termination

The expected severance payment usually results from the average amount of your gross monthly salary and the length of employment in your company.

If you have been with the company for more than 6 months, you will be rounded up to a full year of service. This includes all periods during which you were employed by your employer, including, for example, parental leave.

With regard to your gross monthly salary, your employer will try to limit it to the basic salary in order to calculate your severance pay as low as possible. However, for the calculation of the severance pay and thus also for the entry in the severance pay calculator, all salary components can be added to the basic salary.

The following formula is usually used to calculate the amount of severance pay:

Factor x gross monthly wage x number of years of employment

Normally, the factor is 0.5, which means that the severance payment is half a gross monthly salary per year of employment.

The greater the doubts about the effectiveness of a dismissal, the higher the factor can be. It also plays a role in which industry you work and whether you proceed against your dismissal without or with a lawyer.

Content

Net settlement

Do I have to pay tax on my severance pay?

Yes, since 01.01.2006, severance pay is generally taxable. Therefore must every severance pay received by an employee must be fully taxed. You can calculate this taxation of your severance pay with our severance pay calculator.

Can I save tax when I receive a severance payment?

If a termination for operational reasons takes effect in November or December of a year and a severance payment is paid out, there is an option to split the severance payment over two years. For the employee liable to tax, this results in the Possibilitypossibilityto keep the accruing tax contributions as low as possible.

What is the quintile rule?

In order to relieve the employee a little, there is the quintuple regulation, which allows the severance pay to be divided up over five years for tax purposes.

With the one-fifth rule, the amount of tax is calculated as follows:

  1. The severance pay is divided by 5 and added to the taxable annual income. 
  2. The tax rate for the income with severance pay is calculated.
  3. The wage tax for the annual income without severance pay is calculated.
  4. The difference between the two amounts is multiplied by 5.
  5. The result is the mitigated income tax to be deducted from the severance payment

Conditions for the quintile regulation are:

  1. That the severance payment is paid within one calendar year.
  2. That the severance pay and all other income until the end of the year must be higher than the salary that will be lost until the end of the year.

In our severance payment calculator, the one-fifth rule is applied for taxation.

Which taxes/contributions must be paid in addition to income tax in the case of a severance payment?

Employees do not have to Employees do not have to pay contributions to pension, health, long-term care and unemployment insurance. Only in the case of voluntarily statutorily insured persons does the severance pay count as insurable income, so that contribution payments are necessary.

For all employees, the applicable rate for church tax is deducted from the severance pay (8% or 9%) plus the Soli, which is calculated for a tax burden of € 16,956 upwards (married couples in the splitting tariff: € 33,912).

Our severance calculator takes into account all the tax deductions mentioned.

Our expertise

CANCELLATION

CANCELLATION

We help you to get the best possible settlement.

TERMINATION AGREEMENT

TERMINATION AGREEMENT

We support you in drafting a termination agreement.

REFUSAL

REFUSAL

We support you in the event of a warning.

REFERENCE

REFERENCE

We advise you on your employer's reference.

When should a termination be reacted to?

In general, you should calculate the possible amount of your severance pay as soon as possible using the severance pay calculator, as you only have 21 days to file a dismissal protection action .

Why should caution be exercised with regard to termination and settlement agreements?

Such offers can seem profitable at first, but are usually not as lucrative as first assumed. 

A lawyer for labour law should definitely be consulted here, on the one hand to negotiate a severance payment that you have earned and, on the other hand, to avoid being disadvantaged in connection with unemployment benefits. 

You can use the severance calculator to calculate a realistic severance amount.

Only 3 steps to your rights

Step 1

Fill in the online severance pay check

Answer our questions in the online severance check. You will directly find out the amount of a possible severance payment.

Step 2

Make a free telephone call

Get a professional, free and non-binding assessment of your situation by our lawyers.

Step 3

Receive the best possible severance pay

Our lawyers will make the best of your situation and negotiate the best possible settlement for you.

With our severance pay calculator, you can calculate how much your severance pay can usually be. You will find out whether you are entitled to severance pay and how you can get the best possible severance pay.

Why should you have your severance pay enforced by experts?

In principle, it is possible to represent oneself before the labour court and conduct the negotiations without external assistance. However, data from the past has clearly shown that in such a case the highest possible settlement is usually not obtained. As a rule, severance payments are higher if you have a lawyer support you and represent you in court.

  1. Employers are supported by labour law specialists in court. Their aim is to pay as little severance pay as possible. Against such an expert, a negotiation becomes very difficult for a layperson. Therefore, the desired severance pay can usually not be achieved.

 

  1. An expert who advises you on your action for protection against dismissal knows exactly which details are important in such a hearing. Often a dismissal protection action for severance pay is still possible due to certain circumstances, although it can actually be assumed that you have no chance of receiving severance pay. A specialised lawyer with years of experience in this field is able to recognise these special circumstances.

 

  1. A common problem in enforcing a severance payment is compliance with form and deadlines. Accordingly, an action for protection against dismissal must be filed correctly and, above all, within a narrow time window. In order not to make any unnecessary mistakes here and lose the chance of a severance payment, the advice of a lawyer is always recommended.

Example calculations:

These calculations are based on a severance factor of 0.5. The severance pay calculator calculates your severance pay with a factor that fits your industry.

Severance pay Length of service in years Gross salary per month
7.500 €
5
3.000 €
15.000 €
10
3.000 €
22.500 €
15
3.000 €
30.000 €
20
3.000 €
Severance pay Length of service in years Gross salary per month
10.000 €
5
4.000 €
20.000 €
10
4.000 €
30.000 €
15
4.000 €
40.000 €
20
4.000 €
Severance pay Length of service in years Gross salary per month
12.500 €
5
5.000 €
25.000 €
10
5.000 €
37.500 €
15
5.000 €
50.000 €
20
5.000 €

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More questions

In any case, every notice of termination should be checked immediately for its form and validity. Initially, do not sign anything that is offered to you. This can easily be clarified in an initial meeting with one of our lawyers.

If you have received a notice of dismissal from your employer, you can within 3 weeks file an action for protection against dismissal with the competent labour court after receiving the notice of dismissal.

Document the date of receipt of the notice of termination so that a claim can be filed in due time. Remember to register with the employment agency as a jobseeker promptly after receiving the notice. This will prevent the reduction of benefits.

Find out about the possibility of bringing an action against unfair dismissal and possible claims. It is not necessary to be represented by a lawyer in the first instance before the labour courts. However, it is usually worthwhile to seek the professional support of experienced lawyers when dealing with complicated legal issues.

Dismissals by the employer are very often invalid. You can fight for the continuation of your job by means of an action for protection against dismissal. As a rule, however, a severance payment from the employer to the employee is obtained in the context of a dismissal protection action.

Legal fees and court costsare incurred in the course of a dismissal protection process.

The court costs are based on the amount in dispute, which in the case of actions for protection against dismissal is calculated on the basis of 3 months' gross earnings. The court costs are borne by the party that loses the case. If a settlement is reached between the parties, the court costs are waived.

The attorney's fees, which are based on the German Attorney's Fees Act (Rechtsanwaltsvergütungsgesetz), are borne by each party in first-instance dismissal protection proceedings, even if the case is won.

If they have legal expenses insurance, the costs of the legal dispute will be covered by the legal expenses insurance, provided that the insurance cover extends to disputes under employment law.

If you have to bear the costs yourself, it makes sense to file an action against dismissal if the severance pay to be obtained exceeds the costs of the proceedings. Of course, our lawyers will inform you about this.

The existence of a social plan does not exclude the possibility of bringing an action against unfair dismissal. On the contrary, an action for protection against dismissal usually makes sense even in spite of a social plan with a claim to severance pay. A higher severance payment can certainly be obtained in the course of an action for protection against dismissal.

The social plan in itself does not allow any conclusions to be drawn about the effectiveness of a termination. It is best to have the termination reviewed by a lawyer. If necessary, a satisfactory solution can also be found by way of a renegotiation.

You can calculate a realistic settlement amount with the settlement calculator.

As a rule, it does not make sense to take legal action against a dismissal during the probationary period. Only when an employment relationship has existed for six months without interruption is one protected by the Dismissal Protection Act.

In exceptional cases, the termination may be discriminatory, unfaithful or immoral. However, the employer will usually not give a reason for termination in the case of a probationary period termination and does not have to do so.

Furthermore, even in the case of terminations during the probationary period, formal errors or a lack of consultation with the works council can render the termination invalid.

There is no general answer to this question. A warning serves to reprimand and warn the employee in case of misconduct.

In the case of serious misconduct (e.g. criminal offences), a warning is sufficient to be able to effectively terminate the employment contract in the event of repeated misconduct.

In the case of minor misconduct, several warnings are required. In this case, however, a dismissal can only be based on the previous warnings if the misconduct is the same (e.g. regularly arriving late).

Take advantage of our free initial consultation!

We will gladly call you back

RT & Partner
Law firm with limited liability

Goethestraße 74, 80336 Munich, Germany

Opening hours: Mon-Fri 9-18 h

Phone: 089 958 706 40

Fax: 089 958 706 41

*

In the course of the initial assessment meeting, you will be informed about possible costs in the dismissal protection proceedings. You do not have legal expenses insurance? There are alternatives without risk. In particular, our lawyers will examine the possibility of litigation financing for you. With this, you file a lawsuit risk-free and only pay a success commission in the event of success.