Federal Severance Pay Calculator
Check eligibility and estimate your severance pay under 5 U.S.C. 5595. Includes age adjustment, 52-week cap, and tax withholding estimates.
Step 1: Eligibility check
Answer these questions first. If you are not eligible, the calculator will explain why.
Answer all four questions to confirm eligibility.
Step 2: Enter your details
Provide your pay, service, and separation timing to calculate your severance estimate.
Calculated annual basic pay
$120,629 based on Rest of U.S. locality.
Includes locality pay; excludes overtime or bonuses.
Partial years are credited in full 3-month quarters (0, 3, 6, 9 months).
Calculations use official OPM formulas for planning. Confirm your entitlement with HR for official determinations.
Step 3: Your estimate
Review your gross payout, weeks of pay, and any caps or age adjustments applied.
Complete your inputs and select "Calculate severance" to see your estimate.
What happens to my benefits?
Health Insurance (FEHB)
Coverage continues 31 days after separation (free). Temporary Continuation of Coverage (TCC) can extend coverage up to 18 months at full premium plus a 2% admin fee.
Life Insurance (FEGLI)
Coverage continues 31 days after separation (free). You can convert to an individual policy within 31 days.
Thrift Savings Plan (TSP)
Your account remains yours. Contributions stop at separation, but you can leave funds, withdraw, or roll over.
Reemployment
Federal reemployment generally ends severance pay. Temporary federal appointments can suspend severance, which may resume after separation. Private-sector employment does not affect severance.
How Federal Severance Pay is Calculated
Federal severance pay is authorized under 5 U.S.C. 5595 for employees involuntarily separated through no fault of their own. The formula rewards longer service and older age.
The Severance Pay Formula
Weekly Pay = Annual Basic Pay / 52
Base Severance = (Years 1-10 × 1 week) + (Years 11+ × 2 weeks)
Age Adjustment = Base Severance × (Quarters over 40 × 2.5%)
Total = Base + Age Adjustment (capped at 52 weeks)
| Service Period | Severance Credit | Example |
|---|---|---|
| Years 1-10 | 1 week per year | 8 years = 8 weeks |
| Years 11+ | 2 weeks per year | 5 years past 10 = 10 weeks |
| Partial years | 25% per full quarter | 6 months = 0.5 × applicable rate |
| Lifetime cap | 52 weeks maximum | Includes prior federal severance |
Age Adjustment Factor
Employees over age 40 at separation receive an additional 2.5% for each full 3-month quarter over age 40. This can significantly increase your severance.
| Age at Separation | Quarters Over 40 | Adjustment Factor | Severance Increase |
|---|---|---|---|
| 40 | 0 | 1.00 | No adjustment |
| 42 | 8 | 1.20 | +20% |
| 45 | 20 | 1.50 | +50% |
| 50 | 40 | 2.00 | +100% |
| 55 | 60 | 2.50 | +150% |
| 60 | 80 | 3.00 | +200% |
Note: There is no cap on the age adjustment percentage itself. However, the 52-week lifetime cap still applies to total severance, regardless of how high the age adjustment makes the calculation.
Worked Example: 15 Years Service, Age 45
Consider a GS-13 Step 7 employee in Washington DC with 15 years 6 months of service, separated at age 45:
| Component | Calculation | Amount |
|---|---|---|
| Annual basic pay (2026) | GS-13 Step 7, DC locality | $140,343 |
| Weekly pay | $140,343 / 52 | $2,698.90 |
| Years 1-10 | 10 × $2,698.90 | $26,989.00 |
| Years 11-15 | 5 × 2 × $2,698.90 | $26,989.00 |
| 2 quarters (6 months) | 2 × 0.5 × $2,698.90 | $2,698.90 |
| Base severance | 21 weeks of pay | $56,676.90 |
| Age adjustment (50%) | $56,676.90 × 0.50 | +$28,338.45 |
| Total gross severance | 31.5 weeks of pay | $85,015.35 |
Estimated Tax Withholding
- Federal (22%)-$18,703
- Social Security (6.2%)-$5,271
- Medicare (1.45%)-$1,233
- Estimated net~$59,808
Payout Timeline
- Weeks of pay31.5 weeks
- Payment frequencyBiweekly
- Duration~8 months
What Counts Toward Service
Creditable Service
- ✓Federal civilian employment under 5 U.S.C. 2105
- ✓U.S. Postal Service and Postal Rate Commission
- ✓D.C. Government (hired before Oct 1, 1987)
- ✓Military service (if returned via USERRA restoration rights)
- ✓NAF employment (if moved to civil service within 3 days)
Not Creditable
- ✗Military service before first federal job
- ✗Military service with break before federal employment
- ✗LWOP that doesn't accrue annual leave (max 6 mo/year creditable)
- ✗Contractor or temporary employment under 3 years
Who Does NOT Qualify for Severance
Important Disqualifications
Severance eligibility is based on your status at separation. Even if you choose not to retire, being eligible for retirement disqualifies you from severance.
- • FERS immediate retirement eligibility
- • MRA+10 eligibility (even reduced annuity)
- • Discontinued Service Retirement eligibility
- • VERA eligibility (if offered by agency)
- • Voluntary resignation (without RIF notice)
- • Removal for misconduct or performance
- • Declining a reasonable job offer
- • Military retired pay recipient
2026 Federal Workforce Context
The RIF moratorium that protected many federal employees expired January 30, 2026. Combined with hiring freezes and buyout offers, approximately 249,000-271,000 federal workers departed in 2025 (about 9% of the workforce). If you're facing potential separation, understand your options:
- • VSIP (Buyout): Up to $25,000 lump sum if offered by your agency
- • VERA: Early retirement eligibility if offered with buyout
- • Severance: Formula-based payment if involuntarily separated
- • Priority Placement: RIF'd employees have hiring preference
Learn More About Severance Pay
Explore eligibility details, benefit impacts, reemployment rules, and VSIP (buyout) options before you make decisions.
Read the Severance Pay Guide →