🇩🇪Germany Severance Pay Calculator
Calculate German severance pay (Abfindung) using the § 1a KSchG 0.5-factor standard, Fünftelregelung tax relief, and zero social security deductions.
Germany Severance Framework
Kündigungsschutzgesetz § 1a KSchG (Abfindung) • Currency: EUR ($)
Employment & Wage Parameters
0.5 × Monthly Salary (€4,500) × 6 service years (> 6 months rounded up)
Severance Package Distribution
Statutory Severance Itemized BreakdownTotal Service: 72 continuous months
Germany Statutory Termination Law: Kündigungsschutzgesetz § 1a KSchG (Abfindung)
Under § 1a of the German Dismissal Protection Act (KSchG), an employee dismissed for operational reasons is entitled to 0.5 gross monthly salaries for each year of service if they do not file an employment tribunal claim. While subject to income tax under the privileged Fünftelregelung tax formula, severance payments are free of social security contributions.
Compare with Other International Severance Models
Frequently Asked Questions
What is the statutory severance formula in Germany?
Under § 1a of the German Dismissal Protection Act (KSchG), an employee dismissed for operational reasons is entitled to 0.5 gross monthly salaries for each year of service if they do not file an employment tribunal claim. While subject to income tax under the privileged Fünftelregelung tax formula, severance payments are free of social security contributions.