Estimate a non-binding severance range and understand the tax impact — free, anonymous, in 5 minutes.
In Germany there is generally no statutory right to severance pay. As a non-binding guide a rule of thumb is often cited: 0.5–1.5 gross monthly salaries per year of service. This free calculator shows that range and puts the tax impact (§ 34 EStG) in context.
Important: Do not sign anything before you know your position.
From the rule-of-thumb range to the tax overview
Enter salary and tenure. We show the non-binding range (0.5–1.5 gross monthly salaries per year) — not a statutory entitlement.
We point out neutrally which circumstances (e.g. social selection, special protection, works council consultation) can play a role in practice.
A rough estimate of the tax withheld and the possible relief via the Fünftelregelung (§ 34 EStG, via the income tax return).
Agreeing to a settlement (Aufhebungsvertrag) may result in a 12-week benefit suspension on unemployment benefit and a reduction of the entitlement period by one quarter. Our calculator shows you how to negotiate a bridging payment or whether it may be more favourable to wait for a formal dismissal.
Comprehensive analysis of all relevant factors
Non-binding guidance: 0.5–1.5 gross monthly salaries per year of service. Not a statutory entitlement, no invented single figure.
Social selection, special dismissal protection, works council consultation: neutral information on circumstances that can be relevant — without assessing your individual case.
Rough estimate with and without the Fünftelregelung (§ 34 EStG). Note: since 2025 the relief is obtained only via the income tax return.
For settlement agreements: automatic warning about the 12-week benefit suspension (§ 159 SGB III) with concrete countermeasures.
Neutral notes: what to look out for and what to review before signing — not an individual recommendation.
Full analysis with your severance data, calculation basis and legal information.
This information was compiled based on current German legislation.
There is no general statutory right to severance. A common non-binding rule of thumb is: 0.5–1.5 gross monthly salaries per year of service. The standard severance referenced in § 1a KSchG (0.5 per year) only applies in the special case of a dismissal for operational reasons with an express severance-for-no-claim offer. The actual amount depends on the individual case.
The Fünftelregelung (§ 34 EStG) allows severance pay to be taxed more favourably. In simplified terms: tax is calculated as if the severance were spread over 5 years — this significantly reduces the effective tax burden due to lower bracket progression. On a severance of €30,000, you could potentially save several thousand euros in tax.
If you sign a settlement agreement (Aufhebungsvertrag), the Federal Employment Agency typically imposes a 12-week benefit suspension (§ 159 SGB III). You will receive no unemployment benefit during this period. The entitlement period is also reduced by one quarter. Always negotiate a bridging payment or wait for a formal dismissal.
For operational dismissals, the employer must select among comparable employees based on social selection criteria (§ 1 para. 3 KSchG): those who joined most recently, are youngest or have fewer maintenance obligations are dismissed first. Errors in this process may make the dismissal challengeable — and are your strongest argument for a higher severance payment.
Legal advice is particularly worthwhile with special dismissal protection, when the validity of the dismissal is uncertain, before signing a termination agreement, or when the employer pressures you to sign immediately. Free or low-cost initial advice is available from the German Bar Association (anwaltauskunft.de), trade unions and consumer advice centres.
The full assessment with the rule-of-thumb range, neutral notes and a tax overview is free.
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