Severance Calculator
Calculate dismissal compensation, notice period, vacation and proportional bonuses
🇵🇹 Legislation Portugal
12 days/year (Art. 366.º CT)
Since 1 October 2013: 12 days of base pay per full year (Art. 366.º CT). Reference pay capped at 20× the minimum wage (€18,400 in 2026); total capped at 12 months' pay or 240× the minimum wage. The old '3-month minimum' floor was repealed in 2012.
Attention
You may be entitled to unemployment benefits.
⚠️ Values are estimates. Consult a specialist lawyer.
Country guides
Detailed rules and worked examples for each pilot country.
Severance Calculator — Frequently Asked Questions
Everything you need to know about severance pay in the EU
Severance Pay Guide – Termination Rights Across the EU
When an employment contract ends, severance pay (indemnité de licenciement, Abfindung, indennità di licenziamento) compensates workers for job loss. Rules vary significantly across EU member states regarding eligibility, calculation methods, and maximum caps. This guide explains how severance is determined in each country for 2026.
How Severance Pay Is Calculated
Severance calculation methods differ by country. France mandates 1/4 of monthly salary per year of service for the first 10 years, then 1/3 thereafter (indemnité légale de licenciement). Germany has no statutory requirement, but courts typically award 0.5 months' salary per year of service (Abfindung). Spain applies 20 days' salary per year for objective dismissals (despido objetivo) and 33 days for unfair dismissal (despido improcedente). Portugal provides 12-18 days per year depending on tenure. Luxembourg applies specific formulas based on service length and age.
Notice Periods in EU Countries
Notice periods (préavis, Kündigungsfrist, preavviso) protect both employer and employee during contract termination. Germany requires 4 weeks to 7 months depending on tenure. France mandates 1-3 months based on seniority and role. Belgium's notice periods can extend to 62+ weeks for long-tenured employees. Luxembourg requires 2-6 months depending on years of service. Spain applies 15-30 days. Understanding your notice period is essential for planning career transitions and negotiating exit packages.
Protection Against Unfair Dismissal
EU law and national legislation protect workers against unfair dismissal (licenciement abusif, ungerechtfertigte Kündigung). Most countries require employers to justify termination with valid reasons: economic redundancy (licenciement économique), professional misconduct (faute grave), or performance issues. Special protections exist for pregnant workers, employee representatives, and workers on sick leave. Wrongful dismissal can result in additional compensation, reinstatement orders, or damages beyond statutory severance.
Collective Redundancy Rules
EU Directive 98/59/EC regulates collective redundancies. Employers must inform and consult employee representatives before large-scale layoffs. Notification thresholds vary: dismissing 10+ employees in companies with 20-99 workers, or 10% of workers in companies with 100-299 employees. Social plans (plan social, Sozialplan) may provide enhanced severance packages. In France, the PSE (Plan de Sauvegarde de l'Emploi) can offer several months of additional compensation above the statutory minimum.
Tax Treatment of Severance Payments
Tax treatment of severance varies significantly. In France, statutory severance (indemnité légale) is tax-exempt up to certain limits. Germany allows the Fünftelregelung, spreading the tax burden over five years for a lower effective rate. Spain exempts severance up to the statutory maximum for unfair dismissal. Luxembourg applies favorable taxation to departure compensation. Understanding the tax implications of your severance package helps evaluate total compensation and compare across countries.