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.
Severance Pay by Country by Country
| Country | Statutory formula | Notes |
|---|---|---|
| United States | $0 statutory | WARN notice only; severance is contract/custom |
| United Kingdom | 1.5 wk × age-weighted/yr | Statutory redundancy, 20-yr cap |
| Canada (ON) | Up to 34 wks statutory | 8 termination + 26 severance; common law far above |
| Germany | None automatic | 0.5 month/yr customary via social plans/courts |
| France | 1/4-1/3 month/yr | Legal indemnity floor |
| India | 15 days/yr | Retrenchment compensation + notice (IDA) |
| UAE | 21-30 days/yr | Gratuity EOSB, basic salary |
| Saudi Arabia | 15-30 days/yr | Half/full month formula, award fractions |
| Australia | 4-16 weeks scale | NES redundancy + notice |
| Philippines | 0.5-1 month/yr | By authorized cause |
| Singapore | None statutory | 2 wk-1 mo/yr customary if 2+ yrs |
| Brazil | FGTS + 40% | Employer-funded 8% account + penalty |
| Mexico | 3 months + 20 days/yr | Constitutional dismissal cost |
| China | 1 month/yr | Capped 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.
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.
✓ Formula verified • Last updated: November 3, 2026