So you’ve been laid off. That sucks, but a little less if your employer offers you a severance package. Find out how much severance pay you can get after termination and what the requirements are for qualifying (with bonus negotiation tips!). 

What is Severance Pay?

Severance pay is discretionary monetary compensation provided by the employer to a terminated employee. The exact sum depends on the employment contract type, tenure, position, and other contractual terms. 

Legally, employers aren’t obliged to offer severance pay when conducting layoffs unless there’s a bargaining agreement between an employer and a union forcing them to do so. Only 25% of US companies offer severance pay to all employees, according to a 2023 benchmark study.  

To determine if you’re entitled to a severance package, check your employment contract or reach the HR department. 

Is Severance Pay Taxable?

Yes, severance pay is taxable in the US. It will be included in your W-2, and appropriate taxes will be withheld by your employer.…

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