Pay & Salary

Severance Pay by Country

Updated November 2026 · Free · No sign-up

Compare statutory severance and redundancy pay across major economies — what the law forces employers to pay when jobs end, from US zero to Gulf gratuities. Pick any two countries below for a side-by-side.

Quick answer: Statutory severance spans nothing (US) to 21-30 days per year (Gulf EOSB) and India’s 15 days/year retrenchment. The table shows formulas, not vibes.

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Severance Pay by Country by Country

CountryStatutory formulaNotes
United States$0 statutoryWARN notice only; severance is contract/custom
United Kingdom1.5 wk × age-weighted/yrStatutory redundancy, 20-yr cap
Canada (ON)Up to 34 wks statutory8 termination + 26 severance; common law far above
GermanyNone automatic0.5 month/yr customary via social plans/courts
France1/4-1/3 month/yrLegal indemnity floor
India15 days/yrRetrenchment compensation + notice (IDA)
UAE21-30 days/yrGratuity EOSB, basic salary
Saudi Arabia15-30 days/yrHalf/full month formula, award fractions
Australia4-16 weeks scaleNES redundancy + notice
Philippines0.5-1 month/yrBy authorized cause
SingaporeNone statutory2 wk-1 mo/yr customary if 2+ yrs
BrazilFGTS + 40%Employer-funded 8% account + penalty
Mexico3 months + 20 days/yrConstitutional dismissal cost
China1 month/yrCapped at 3x local average wage

Figures reflect statutory/standard positions at last update — collective agreements and employer policies often exceed them; verify official sources for decisions.

Reading the Table Right

  • Statutory vs negotiated: the US zero coexists with rich tech packages; Ontario’s statutory caps sit under common-law awards 3-10x higher — floors are floors.
  • Cause matters everywhere: resignation usually forfeits (except UAE post-2022); misconduct can zero entitlements; redundancy maximizes them.
  • Funding models: Brazil pre-funds (FGTS accounts); Gulf accrues as employer liability; others pay at the event.
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Negotiation Baseline

Know your jurisdiction’s floor before any exit conversation: the floor is unconditional; packages buy releases for the space above it. Country calculators on this site run the exact formulas — UK, Ontario, Australia, UAE, Saudi, India’s FnF — linked above.

Frequently Asked Questions

Which country has the most generous severance?

Mexico’s 3-months-plus-seniority premium and Gulf long-service gratuities lead formulas; Canadian common-law awards often beat them all in practice.

Is severance required in the US?

No — only WARN-Act notice for mass layoffs; packages are contractual or customary (1-2 weeks/year tech norm).

What is India’s retrenchment compensation?

15 days’ average pay per completed year plus one month’s notice (or pay) under the Industrial Disputes Act for covered workers.

Does resignation earn severance anywhere?

Mostly no — the UAE’s post-2022 full-gratuity-on-resignation rule is the notable exception; Saudi pays fractions at 2/5/10-year marks.

How does Brazil’s FGTS work?

Employers deposit 8% of wages monthly into a worker fund; unjust dismissal adds a 40% penalty on the balance — severance pre-funded by design.

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✓ Formula verified  •  Last updated: November 3, 2026