Severance Pay Meaning | What is Severance Pay? | UBS
UBS App is now Superworks

- don't miss our newly launched products!

Severance Pay

What is Severance Pay?

Severance Pay is the additional compensation provided by the employer to the employee after employment is over. This is optional, not mandatory. This includes extended benefits such as outplacement assistance help, health insurance, etc. This package is offered to employees whose jobs are eliminated because of inflation or who are laid off or who retire. In some cases, employees who are fired or resign may get this package.

Severance pay can be a goodwill gesture and ensures a smooth transition for employees and employers. This can help employees with the buffer between working and unemployment.

The amount of severance pay depends on how long the employee was with the employer. In some companies, there is a lump sum amount that is taxable as well. However, based on this factor severance pay is given:

  • Medical Benefits Or Life Insurance
  • Extra Pay Based On Time Of Employment
  • Pay For Unused Vacation Time, Sick Leaves, Or holidays Pay
  • Stock Options And Retirement Accounts

Also, See: Fixed Pay | Incentive Pay

Get Started

Solving Real Business Challenges with a Robust & Impeccable System

Any Query? Reach Out To Us.

We are here to help you find a solution that suits your business need.

Watch a Demo

Get a visual representation of how we work!

Schedule Demo
Get in Touch

Our sales expert is just one call away to meet your needs.

Get In Touch
Start Chat

Have a question?
Chat with Us

Start Chat