How severance works in tech
Severance pay is money (and sometimes benefits) an employer provides to an employee whose job is being eliminated. In most of the United States, severance is not legally required: at-will employment means a company can let you go with no notice and no payout, except where the federal WARN Act, a state version, or a contract says otherwise. In the UK, EU, and Canada, the picture is very different — statutory severance is mandatory and scales with tenure. This calculator tries to translate those norms into a number you can use as a baseline for negotiation.
What is severance pay?
Severance is typically paid out as a lump sum or as continued salary for a fixed number of weeks ("salary continuation"). It usually comes bundled with a separation agreement that asks you to release the company from legal claims. The size of the package depends on your tenure, your level, the company's policy, and — importantly — your willingness to negotiate.
Are companies required to give severance?
In the US, generally no. Most states have at-will employment, and there's no federal law requiring severance for ordinary terminations. The exceptions: the federal WARN Act requires 60 days advance notice (or pay in lieu) when a company with 100+ employees does a mass layoff. California, New York, New Jersey, and Illinois have stricter "mini-WARN" laws. If your employment contract or an employee handbook promises severance, that may be enforceable. Otherwise, severance is a discretionary benefit — but it's almost always offered to avoid lawsuits.
The WARN Act, explained
The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100+ employees to give 60 calendar days of advance written notice before a "plant closing" or "mass layoff." If they don't give notice, they have to pay you for the 60-day period instead — which is functionally severance. California's version (Cal-WARN) is broader and applies to companies with 75+ employees. New York's WARN gives 90 days. If you're caught up in a mass layoff and didn't get notice, you may be owed WARN pay in addition to whatever severance the company is offering.
How tech severance has changed in 2024–2026
The 2022–2024 layoff wave reshaped tech severance norms. At the start of the cycle, big tech packages were generous: Meta, Google, and Microsoft all paid 16+ weeks base plus 2 weeks per year of tenure, full RSU vesting through a "golden window," and 6 months of healthcare. By 2025, packages had compressed. Newer rounds at the same companies commonly offered 12–14 weeks base plus 1 week per year, shorter equity windows, and tighter benefits. Smaller and mid-stage startups, which often had no formal policy, ranged from "two weeks notice" to "four weeks plus one per year" — with the lower end becoming more common as runway tightened.
The takeaway: don't anchor on the headline numbers from 2022 layoffs. The market reset. Use this calculator's ranges as a current snapshot of what's actually being offered.
Severance by company tier
- Big Tech (FAANG / MAMAA): Typically 12–16 weeks base, plus 1–2 weeks per year of tenure. Better-than-average health benefits continuation and equity treatment.
- Mid-size tech (Series D+, public mid-caps): Usually 8–12 weeks base, plus 1 week per year. Health benefits often through end of month or COBRA subsidy for 2–3 months.
- Series A–C startups: 4–8 weeks base is typical, sometimes less. Many smaller startups have no written policy and default to "minimum legal requirement plus one or two weeks."
- Late-stage / pre-IPO: 8–12 weeks base, but equity treatment often matters more than the cash. Watch for what happens to your unvested RSUs and any double-trigger acceleration clauses.
- Non-tech corporations: 1–2 weeks per year of service is the common formula, with a minimum of 2–4 weeks. Often dictated by long-standing HR policy.
International differences
If you're outside the US, statutory minimums usually beat what a US-style "severance package" would give you. UK statutory redundancy pay is 1 week per year of service (1.5 weeks if you're 41+), capped at 30 weeks and a weekly maximum set annually by the government. German employees can typically expect roughly 0.5 month of salary per year of tenure, often higher in negotiated settlements (Aufhebungsvertrag). French law has both indemnité légale and often more generous collective agreements. Irish redundancy is 2 weeks per year of service plus one bonus week. Canadian common law severance, especially for long-tenured or senior employees, can be much higher than statutory minimums — sometimes up to 24 months of pay. If you're in any of these regions, talk to a local employment lawyer; the numbers in this calculator are floors, not ceilings.
What to negotiate beyond cash
The cash number is what most people focus on, but it's often the least flexible part of a severance package. Companies running mass layoffs apply a formula and won't move much on dollars. They will move on:
- Extended healthcare: An extra 2–3 months of company-paid COBRA can be worth several thousand dollars.
- Equity acceleration: Ask for an extension of your post-termination exercise window, or for unvested RSUs to vest through your last day of severance pay.
- Outplacement services: Often offered through Lee Hecht Harrison or RiseSmart. Worth asking for if not included.
- Non-compete and non-solicit release: Critical if you want to take a job at a competitor.
- Reference letter: Get a written reference from your manager before your access is cut.
- Conversion of bonus and PTO: Make sure earned bonus and unused vacation are paid out.
Red flags in severance agreements
Read the agreement carefully. Watch for: aggressive non-disparagement clauses that go beyond protecting trade secrets, broad non-compete clauses (now limited or banned in some US states), unusually short review periods, language that releases the company from claims you didn't know existed, and any clause asking you to waive your right to file a charge with the EEOC. If anything feels off, get a lawyer to review it before signing.
Don't sign immediately
Severance agreements typically come with a review period. If you're 40 or older, federal law (the OWBPA) gives you 21 days to consider an agreement that waives age discrimination claims, plus a 7-day revocation period after signing. For group layoffs, it's 45 days. Use that time. Have an employment lawyer look it over — many will do a flat-fee severance review for a few hundred dollars and routinely get clients more money. Companies expect some pushback. The first offer is rarely the best one.