Help: Severance Pay
What you need to fill in
- Employee category
- Salaried Employee, Daily-Wage Worker or Construction Worker — the choice automatically changes the rest of the form fields (e.g. daily instead of monthly pay).
- Calculation type
-
Only shown for "Salaried Employee". Four scenarios:
- Dismissal severance pay — the usual case, the employer terminates the contract.
- Due to retirement, with supplementary pension / without supplementary pension — the employee leaves due to retirement; the amount differs depending on whether they are entitled to a supplementary pension.
- Resignation with employer consent (Law 3198/1955) — a special case of resignation that the employer accepts in writing, with reduced severance pay.
- Hire / dismissal date
- The first and last day of employment.
- Pay
- Monthly (Salaried Employee) or daily (Daily-Wage Worker/Construction Worker) gross pay — the field label changes automatically.
- Pay periods/year
- 12 (salary only), 14 (+bonuses) or 16 (+bonuses +vacation allowance). Not shown for Construction Worker.
- Written notice
- Check if the employer gave timely written notice of dismissal — the severance pay is then reduced. Only shown for Salaried Employee.
What you'll see in the results
- Length of service and step-by-step severance pay breakdown
- Gross amount, applicable tax, and net severance pay
- Installment Schedule: if the amount is large, the law allows payment in installments — a table with the dates and amounts of each installment is shown.
| Severance pay amount (gross) | 3.800,00 |
| Net severance pay | 3.610,00 |
Frequently asked questions
If the employer gives written notice of dismissal in advance (the time period set by law depending on years of service), the severance pay is paid at half the amount.
The calculation is based on Law 4093/2012 and applies to hires after 12/11/2012. If you also have service before that date, the application detects it separately and informs you.
When the severance amount exceeds the limit that allows a lump-sum payment, the law provides for payment in installments — the application calculates and displays them automatically.
In "Calculation type" select "Due to retirement, with supplementary pension" if you are entitled to a supplementary pension, otherwise "without supplementary pension" — the severance amount is calculated differently in each case.