Software Engineer Severance Pay: 2026 Guide
Software Engineers typically receive 2-4 weeks per year of service. Calculate your estimated package below.
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Typical Software Engineer Severance Range
Software engineers are among the most commonly laid off roles in tech. With average salaries of $130,000 and strong demand across industries, software engineers have significant leverage when negotiating severance packages. Most tech companies offer 2-4 weeks per year of service, with additional benefits like accelerated RSU vesting and extended health coverage.
Based on $130,000 average salary, 5 years of service
How Software Engineer Compares to Technology Average
Top Companies Hiring Software Engineers
Severance packages at major employers for software engineer roles:
| Company | Severance Formula | Rating |
|---|---|---|
| Meta (Facebook) | 16 weeks base + 2 weeks per year of service | Generous |
| Google (Alphabet) | 16 weeks base + 2 weeks per year of service + bonus | Generous |
| Amazon | Varies widely: corporate gets more than warehouse; typically 1-2 weeks per year | Standard |
| Microsoft | 2+ months base pay plus additional weeks per year of service | Generous |
| Stripe | 14 weeks + tenure bonus | Generous |
| Airbnb | 14 weeks base + 1 week per year (up to additional 4 weeks) | Generous |
Software Engineer Severance After Tax by State
Top states for software engineer roles. Same package, different take-home.
| State | State Tax | Total Tax | After-Tax (on $37,500) |
|---|---|---|---|
| California | 12.3% | 34.3% | $24,638 |
| Washington | 0.0% | 22.0% | $29,250 |
| New York | 10.9% | 32.9% | $25,163 |
| Texas | 0.0% | 22.0% | $29,250 |
| Colorado | 4.4% | 26.4% | $27,600 |
| Massachusetts | 9.0% | 31.0% | $25,875 |
Negotiating Software Engineer Severance
Role-specific strategies for software engineer severance negotiation:
- ✓Negotiate accelerated RSU vesting — at top tech companies this can be worth $50,000+
- ✓Ask for extended stock option exercise windows (push for 12 months vs standard 90 days)
- ✓Request continuation of any signing bonus clawback waiver
- ✓Push for outplacement services specializing in tech placement
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Software Engineer Severance FAQ
How much severance does a software engineer typically get?▼
Software Engineers typically receive 2-4 weeks of pay per year of service. With an average salary of $130,000, a software engineer with 5 years of service would typically receive $37,500 (before tax).
Can a software engineer negotiate their severance?▼
Absolutely. Software Engineer severance packages are almost always negotiable. An employment lawyer experienced in technology can typically negotiate 2-5x the initial offer. Focus on role-specific benefits like negotiate accelerated rsu vesting — at top tech companies this can be worth $50,000+.
What should a software engineer prioritize in severance?▼
Beyond cash, software engineers should prioritize: extended health coverage (COBRA costs $600-2,000/month), equity/stock acceleration, outplacement services, and a positive written reference. For technology roles specifically, also focus on professional certification maintenance and industry-specific benefits.
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