Federal Severance Pay Calculator
Check eligibility and estimate your severance under 5 U.S.C. 5595 — including the age adjustment, the 52-week cap, and tax withholding.
Reviewed by Jonathan D., 20-year federal employee · Formulas verified against OPM.gov ·
Eligibility check
Answer these first. If you are not eligible, the calculator will explain why.
Enter your details
Provide your pay, service, and separation timing to calculate your estimate.
Your estimate
Answer the four eligibility questions above to begin.
How federal severance is calculated
Severance pay starts from your weekly rate of basic pay, then layers on credit for years of service and an age adjustment for employees over 40. The total is capped at 52 weeks of pay over your lifetime.
| 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 |
The age adjustment factor
Employees over 40 receive an extra 2.5% for each full 3-month quarter over age 40 — which can sharply increase the total.
| Age at separation | Quarters over 40 | Factor | Increase |
|---|---|---|---|
| 40 | 0 | 1.00 | No adjustment |
| 41 | 4 | 1.10 | +10% |
| 42 | 8 | 1.20 | +20% |
| 43 | 12 | 1.30 | +30% |
| 44 | 16 | 1.40 | +40% |
| 45 | 20 | 1.50 | +50% |
| 46 | 24 | 1.60 | +60% |
| 47 | 28 | 1.70 | +70% |
| 48 | 32 | 1.80 | +80% |
| 49 | 36 | 1.90 | +90% |
| 50 | 40 | 2.00 | +100% |
| 51 | 44 | 2.10 | +110% |
| 52 | 48 | 2.20 | +120% |
| 53 | 52 | 2.30 | +130% |
| 54 | 56 | 2.40 | +140% |
| 55 | 60 | 2.50 | +150% |
| 56 | 64 | 2.60 | +160% |
| 57 | 68 | 2.70 | +170% |
| 58 | 72 | 2.80 | +180% |
| 59 | 76 | 2.90 | +190% |
| 60 | 80 | 3.00 | +200% |
| 61 | 84 | 3.10 | +210% |
| 62 | 88 | 3.20 | +220% |
| 63 | 92 | 3.30 | +230% |
| 64 | 96 | 3.40 | +240% |
| 65 | 100 | 3.50 | +250% |
Worked example: 15 years, age 45
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 ÷ 2,087) × 40 | $2,689.85 |
| Years 1–10 | 10 × $2,689.85 | $26,898.50 |
| Years 11–15 | 5 × 2 × $2,689.85 | $26,898.50 |
| 2 quarters (6 months) | 2 × 0.5 × $2,689.85 | $2,689.85 |
| Age adjustment (50%) | $56,486.85 base × 0.50 | +$28,243.43 |
| Total gross severance | 31.5 weeks of pay | $84,730 |
What counts toward service
Who does not qualify
Eligibility is based on your status at separation. These situations disqualify you, even when a separation is involuntary — being eligible for retirement counts, whether or not you retire.
RIF severance pay: what federal employees get
A reduction in force (RIF) is the most common qualifying separation. If you are RIF'd, OPM's severance formula under 5 U.S.C. 5595 gives you one week of basic pay per year of service for your first 10 years, two weeks per year after that, plus 2.5% more for each full quarter you are over age 40 — capped at 52 weeks. This calculator applies the same formula as OPM's severance pay estimation worksheet, with your GS grade and locality filled in automatically.
2026 federal workforce context
The RIF moratorium that protected many federal employees expired January 30, 2026. Combined with hiring freezes and buyout offers, roughly 249,000–271,000 federal workers departed in 2025. If you are facing potential separation, understand your options:
Severance calculator — frequently asked questions
The questions RIF-facing federal employees ask most about eligibility, the severance formula, and what happens to benefits after separation.
How is federal severance pay calculated?
Severance pay is based on your weekly rate of basic pay. You receive 1 week per year of service up to 10 years, 2 weeks per year beyond 10 years, plus an age adjustment of 2.5% for each full quarter over age 40. The total is capped at 52 weeks.
How are partial years of service counted?
Partial years are credited in full 3-month quarters. Each full quarter adds 25% of the applicable weekly amount (1-week rate before 10 years, 2-week rate after 10 years).
Is severance pay taxed?
Severance pay is treated as supplemental wages and federal withholding is typically 22%. FICA also applies (6.2% Social Security, 1.45% Medicare). Your final tax bill may differ based on your total income and filing status.
How is severance paid out?
Severance is generally paid biweekly on the same pay-period schedule as your salary. Lump-sum severance is only available if authorized by law (DoD lump sum authority expired Oct 1, 2018).
What happens if I am reemployed by the federal government?
Federal or DC government reemployment terminates severance pay immediately. Temporary federal appointments suspend payments, which may resume after separation. Private-sector, state/local, and federal contractor reemployment does NOT affect severance.
What happens to FEHB or FEGLI coverage after separation?
FEHB continues for 31 days free and can be extended up to 18 months through Temporary Continuation of Coverage (TCC) at 102% of total premium. FEGLI continues for 31 days and may be converted to an individual policy.
Does federal severance affect unemployment benefits?
It depends on your state. Since severance is paid biweekly (like wages), many states treat it as income that delays or reduces unemployment. File for unemployment immediately upon separation and report severance accurately - your state will determine the effect.
Can I negotiate more severance pay as a federal employee?
No. Unlike the private sector, federal severance is determined by law and formula (5 U.S.C. 5595). Agencies have no discretion to offer more or less. However, agencies may offer VSIP (Voluntary Separation Incentive Payment) as an alternative - up to $25,000.
Can I get severance if I resign after receiving a RIF notice?
Yes, under specific conditions. Your resignation is considered involuntary if: (1) you received a specific written RIF notice naming you, (2) you did not decline a reasonable offer, and (3) you resign after the notice but before the effective date. A general RIF announcement is not sufficient.
Is my annual leave payout in addition to severance?
Yes. Your lump-sum annual leave payment is separate from and in addition to severance pay. Annual leave pays out as a lump sum in your final paycheck, while severance continues biweekly for months afterward. Both are taxed as income.
What makes me ineligible for severance pay?
Disqualifying factors include: retirement eligibility (even MRA+10), voluntary resignation (without RIF notice), removal for misconduct or performance, declining a reasonable offer, or receiving military retired pay. Eligibility for retirement - not receipt - is what matters.
What counts as basic pay for severance purposes?
Basic pay is your annual rate including locality pay. It excludes overtime, bonuses, awards, night and holiday premiums, and cash allowances. Law enforcement availability pay and similar administratively uncontrollable overtime can count where the statute treats them as basic pay.
What if I disagree with my agency's severance calculation?
Ask HR for the completed severance pay estimation worksheet and check each line against the 5 U.S.C. 5595 formula: creditable service, age quarters, and the weekly rate. Computation errors go back through your agency payroll office; unresolved disputes can be raised as a compensation claim.
Does severance pay count toward TSP or FERS?
No. Severance is paid after separation, so it is not basic pay for retirement purposes: no TSP contributions or agency match can be taken from it, and it adds no FERS service credit. Your TSP and FERS deductions stop with your final regular paycheck.