Federal Severance Pay Calculator

Calculate your estimated severance pay based on OPM regulations. This tool provides precise calculations including age adjustment factors and applicable limits.

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How Severance Pay is Calculated

• OPM Formula: First 10 years = 1 week/year, Years 11+ = 2 weeks/year
• Age 40+ receives additional 2.5% per year over 40 (up to double at age 80)
• Maximum limit: 52 weeks of basic pay
• Subject to federal, state, Social Security (OASDI), and Medicare taxes. Federal income tax is often withheld at the 22% supplemental wage rate.
• Date of separation determines years of service and age adjustment
• Only for involuntary separations meeting eligibility criteria

Your Information

Annual Basic Pay ?

Date of Separation ?

Date of Birth ?

Years of Creditable Civilian Service (as of today) ?

Tax & Advanced Options

Federal Tax Rate (%)

State Tax Rate (%)

Round age to nearest year (some agencies do this)

Eligibility Verification (check all that apply)

Involuntary separation (RIF, job abolished, etc.)

NOT eligible for immediate retirement annuity

Did NOT decline a reasonable job offer

NOT separated for cause or poor performance

Calculation Results

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Enter your information to calculate severance pay.

Important Notes

Severance pay is only available for involuntary separations under specific conditions.
The maximum severance pay is limited to 52 weeks of basic pay.
Additional limits may apply based on Executive Schedule rates.
Always consult with your HR office for official calculations and eligibility determination.
Severance pay may affect unemployment benefits in some states.
Tax Implications: Severance pay is considered wages and is subject to FICA taxes (which includes Social Security/OASDI at 6.2% and Medicare at 1.45%) in addition to federal and state income taxes. This calculator provides an estimate for federal income tax only.
Impact on Social Security Benefits: If you are receiving Social Security benefits while under your full retirement age, your severance pay is generally considered earnings by the SSA. These earnings are subject to the annual earnings limit and could cause a temporary reduction in your benefits. In the year you reach full retirement age, a higher limit applies only to the months before your birthday. Once you reach full retirement age, this limit no longer applies. Please consult the Social Security Administration for the current year's earnings limits.