🌍 Global HR Tool
Gratuity & Severance Calculator
The world's most comprehensive End of Service calculator. Calculate Severance Pay (USA), Gratuity (India), or EOSB (UAE) with 100% legal accuracy.
Select Region / Country
Severance Policy
Formula: 1 Week Pay × Years of Service
Annual Salary
$50,000
Tenure (Years)
ESTIMATED SEVERANCE
$0
✅ Calculated under USA rules
Tenure
5 Years
Factor
1 Week/Year
Calculation Details
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🇺🇸 How Severance Works in the USA
Unlike India or the UAE, the United States does not have a federal law requiring severance pay. It is strictly based on the company policy or employment contract.
The "Standard" Policy
Most US companies offer 1 to 2 weeks of pay for every year of service during layoffs. Executives may negotiate higher rates.
Severance Agreements
Employers often require you to sign a "Release of Claims" (promising not to sue) in exchange for the severance check.
Unemployment Insurance
Severance is separate from state Unemployment Insurance (UI). Receiving a lump sum may impact when your UI payments begin.
Global Gratuity Comparison
🇮🇳 India (Gratuity)
Statutory- Mandatory: Yes (if 10+ employees)
- Formula: (15 ÷ 26) × Salary × Years
- Eligibility: 5 Years continuous service
- Tax: Exempt up to ₹20 Lakhs
🇦🇪 UAE (EOSB)
Statutory- Mandatory: Yes (Labour Law)
- Formula: 21 days (<5 yrs), 30 days (>5 yrs)
- Eligibility: 1 Year continuous service
- Basis: Basic Salary only
🇬🇧 UK (Redundancy)
Statutory- Mandatory: Yes (if redundant >2 years)
- Formula: Age-based (0.5 to 1.5 weeks/year)
- Cap: Weekly pay capped at £643 (2023/24)
- Tax: First £30k usually tax-free
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Frequently Asked Questions
Is Severance Pay mandatory in the USA?
No. The Fair Labor Standards Act (FLSA) does not require severance pay. It is a matter of agreement between an employer and an employee (or a union contract).
What is the "15/26 Rule" in India?
In India, a working month is considered to have 26 days (excluding Sundays). Therefore, "15 days salary" is calculated as (Monthly Salary ÷ 26) × 15. This results in a higher payout than a simple half-month calc.
How is UAE Gratuity calculated?
For the first 5 years of service, you receive 21 days of Basic Pay per year. For every year exceeding 5 years, you receive 30 days of Basic Pay. The total cannot exceed 2 years' salary.
Does quitting affect my payout?
In the USA, voluntary resignation usually forfeits severance. In India and UAE, you are still entitled to Gratuity/EOSB if you resign, provided you have met the minimum service years (5 years in India, 1 in UAE).
Are bonuses included in these calculations?
Generally, no. Gratuity and Severance are typically calculated on the Basic Salary (plus Dearness Allowance in India). Commissions and annual bonuses are excluded.