Severance & Redundancy Pay

About the Severance & Redundancy Pay calculator

Everyone has heard "half a month's salary per year of service", but rarely the second half of the rule: countable service EXCLUDES every month covered by unemployment insurance (Art. 8, Decree 145/2020). BHTN has been compulsory since 2009, so for most private-sector employees the countable period is zero and so is the statutory severance — their corresponding entitlement is the unemployment benefit instead. This tool says so plainly rather than just printing a number.

Basis & method

• Art. 46 Labour Code 2019 — severance: half a month's salary per year of service, conditional on at least 12 months of regular service.
• Art. 47 Labour Code 2019 — redundancy pay: one month's salary per year of service, but never less than two months.
• Art. 8 Decree 145/2020 — countable service = total actual service MINUS any period covered by unemployment insurance MINUS any period already compensated. A tail of ≤ 6 months counts as half a year, more than 6 as a full year.

This tool is for reference, not tax or legal advice. A real payslip also depends on company-specific arrangements (who bears the insurance, caps on tax-exempt allowances, internal pay grades). Check with your C&B team or the tax authority before acting on it.