Severance / Compensation Pay Calculator

TL;DR

Estimate severance/compensation payouts as: monthly_amount × number_of_months.

This is a negotiation/planning helper, not a legal entitlement calculator.

Who this is for

• Employees negotiating severance packages.
• People planning runway after a layoff.
• Anyone comparing offers with different mixes (cash vs benefits vs notice).

How to use it

1. Enter the monthly amount used for severance (confirm with HR).
2. Enter number of months offered.
3. Read total gross payout estimate.

What “monthly amount” usually means

Companies can define the base differently. Before you negotiate or sign, clarify:

• is it base salary only, or does it include fixed allowances?
• is it gross or net?
• is it calculated from the last full month, or an average?

This tool doesn’t decide the base — it helps you model the outcome once the base is agreed.

What else can be part of a severance package

Many packages include items beyond “X months of salary”, for example:

• payment in lieu of notice (or notice period on payroll)
• unused vacation payout (if applicable to your situation)
• health insurance extension or other benefits
• outplacement / career support
• a retention/transition bonus for handover

When you compare two offers, don’t compare only the headline “months” — compare the full package value and the timing of payments.

Worked examples

Example 1: 3 months severance

10,000 RON × 3 → 30,000 RON.

Example 2: partial months

Use decimals (e.g., 1.5 months) if your agreement is structured that way.

Example 3: compare two offers

Run two scenarios and compare total payout and other terms (health insurance, notice period, equipment return).

Example 4: runway planning

If you want to plan “how many months can I live off this?”, do a simple split:

1. estimate severance total (gross)
2. estimate net after deductions (ask payroll/HR for a net estimate)
3. divide by your monthly burn (rent + food + loans + obligations) This turns a scary event into a concrete plan.

Edge cases & gotchas

• Severance terms vary widely; confirm whether the amount is gross and what deductions apply.
• Tax treatment may differ by component; confirm with HR/payroll.
• Watch the payment schedule: “3 months” paid in one lump sum is different from “3 months” paid monthly.
• If you sign a separation agreement, understand any clauses (non-disparagement, confidentiality, return-of-equipment deadlines).

FAQ

Is severance mandatory?

Depends on context (contract, collective agreements, company policy). This tool doesn’t determine entitlement.

Should I negotiate months or the base amount?

Often the easiest lever is the number of months, but sometimes the base definition matters more (base salary vs total compensation). Ask HR to define the base in writing.

What should I ask for (practical checklist)?

• a written breakdown of all components and payment dates
• clarity on gross vs net and who calculates deductions
• what happens to benefits (health insurance) and for how long
• confirmation of unused vacation handling (if relevant)

What next?

Read Severance pay in Romania: negotiation checklist (IT).

Sources

• Romanian labour code overview: https://www.mmuncii.ro/

Related tools

• Net from gross (2025)
• Working days
• Layoffs tracker: /layoffs

Next steps (IT Jobs List)

For employment calculators, treat the result as guidance, not legal advice. Always verify your company policy/contract.

Related tools

• Take‑home pay (2025)

Related guides

• Severance pay in Romania: negotiation checklist (IT)

Quick recommendation

• Save your assumptions (rates, breaks, thresholds) so you can reproduce the result.
• If you use the output in an invoice/offer, include a short explanation (what’s included and what’s not).

Practical checklist (IT Jobs List)

• Treat calculators as guidance and verify your contract/internal policy.
• Keep one computed example (with numbers) for discussions.
• If working days/holidays matter, clarify the exact period.