You have a severance offer in hand (or expect one) and want to know how it compares. There is no federal law setting a severance amount for most US employees, but there are well-documented norms by tenure, industry, role, and state. This guide lays out the 2026 benchmarks. Every figure is an illustrative estimate for comparison, not a statement of what any specific person is owed, which only the employer's policy and the agreement determine.
The Quick Benchmark
The most commonly reported US baseline is 1 to 2 weeks of pay per year of service. The full formula and worked examples are in the how severance is calculated guide; the short version:
| Situation | Commonly reported weeks per year | |-----------|---------------------------------| | Small companies, retail, hospitality | 0.5–1 week | | Most corporate employers | 1–2 weeks | | Technology, finance, consulting | 2–4 weeks | | Executive level | Usually flat 6–18 months, individually negotiated |
Worked example: $100,000 salary ($1,923/week), 5 years, 2-week multiplier → $1,923 × 2 × 5 = an estimated $19,230 before taxes. The same profile at 1 week per year sketches roughly $9,615. Reading your offer against the range, rather than one number, is the realistic comparison. The free calculator produces low, typical, and high estimates for your specific inputs.
Industry Moves the Range
- Technology: in documented large layoffs, companies like Google, Meta, and Microsoft have offered packages reported around 14–16 weeks base plus additional weeks per year of service, sometimes with equity acceleration (historical examples, not current policy commitments).
- Finance and banking: reported senior packages at firms like Goldman Sachs and JPMorgan commonly run richer per year of service, with prorated bonus treatment a frequent component.
- Healthcare and manufacturing: 1–2 weeks per year is the commonly reported band; union contracts can set their own terms.
- Retail and hospitality: often minimal at store level; corporate roles typically closer to the standard bands.
The average severance package benchmarks page and the industry breakdown track these in more detail.
Check the wider picture
Check your situation, not just the headline.
Add your role, tenure, offer terms, and circumstances to get a more complete educational assessment. In about 6 minutes, get a Severance Score, an estimated benchmark range, potential red flags, and three negotiation angles to consider.
SeveranceCalc is not a law firm and does not provide legal advice. Our calculators and reports are educational estimates only. Only a licensed employment attorney in your state can advise you on your specific legal rights.
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Seniority Changes the Multiplier
- Individual contributors commonly see the 1–2 weeks-per-year band, with technology roles skewing higher.
- Managers and directors are more often reported in the 2–3 weeks-per-year band.
- VPs and executives usually negotiate flat periods (6–18 months) in their employment agreements, often alongside equity acceleration, prorated bonus, extended COBRA, and outplacement; see executive severance.
State Law and Withholding Are Separate
No state sets a general severance amount (New Jersey and Maine mandate severance only in certain covered mass layoffs). State and local withholding is a separate payroll question. Methods can depend on how the payment is made, and a state's top marginal bracket is not a withholding rate. Confirm the applicable state assumption before using the severance tax calculator; is severance taxable explains the distinction from final liability.
Count the Whole Package
| Component | Commonly reported value | Notes | |-----------|------------------------|-------| | Cash severance | The headline number | Weeks × years formula | | Unused PTO payout | Varies with balance | Required by law in some states | | Health coverage (COBRA) | $500–$2,000/month | Employer-paid vs subsidised vs self-pay | | Equity treatment | $0 to six figures | Significant at tech companies | | Prorated bonus | 0–100% of target | Depends on the bonus plan's terms and state law | | Outplacement | $5,000–$15,000 | Coaching, resume, search support | | Non-compete scope | Hard to quantify | Can affect future earnings |
Comparing offers on the cash headline alone understates real differences: two packages with the same cash figure can differ by tens of thousands once equity and COBRA terms are counted.
Signals Worth a Closer Look
None of these makes an offer wrong; they are patterns many people choose to review carefully, often with an employment attorney:
- Cash below 1 week per year of service outside the low-paying industries.
- No employer contribution to continued health coverage at a mid-to-large employer.
- Significant unvested equity forfeited with no acceleration or extended exercise window.
- A broad non-compete with no additional consideration attached.
- No prorated bonus after working most of the bonus period; whether any is owed depends on the plan's terms and your state.
- A signing deadline that feels rushed. Where the OWBPA's conditions apply (workers 40+, employers with 20+ employees, age-claim releases), at least 21 days of review time is required (45 for group layoffs), plus a 7-day revocation window.
If the Offer Sits Low in the Range
Many employers expect some negotiation, and initial offers are not always final. Factors that commonly carry weight: long tenure, institutional knowledge, client relationships, equity and bonus treatment, non-compete scope, and (where they exist) potential legal claims, which only a licensed employment attorney can assess (age-related questions sometimes arise in later-career layoffs). The negotiation guide covers the approaches people commonly consider, and the free calculator grounds the conversation in an estimated range. Whether to negotiate, and how far, is a decision only you can make. This is general information, not legal advice.
Illustrative Scenarios
Mid-level engineer, technology, 4 years, Washington: $150,000 salary; a reported-style formula of 16 weeks base + 2 weeks/year sketches 24 weeks ≈ $69,000 cash, plus equity acceleration and employer-paid COBRA where offered. Estimated total package value: ~$90,000+.
Marketing manager, healthcare, 7 years, Illinois: $95,000 salary at 1 week/year sketches ~7 weeks ≈ $12,800 cash, plus PTO payout where required. Estimated total: ~$18,000.
VP of sales, finance, 3 years, New York: negotiated flat 12 months ≈ $250,000, plus prorated bonus, equity acceleration, and extended COBRA in reported executive packages. Estimated total: several times the standard formula.
All three are illustrative estimates built from commonly reported patterns; actual packages vary in both directions with the employer's policy and the agreement's terms.