Severance pay calculator
How much severance are you entitled to when your employment ends? The calculator computes statutory severance under §67 of the Labour Code — by length of employment and reason for notice.
Inputs
Average gross monthly earnings (not the gross salary), usually for the previous quarter.
Monthly earnings = hourly × weekly hours × 4.348 (§356 Labour Code).
Statutory severance (gross)
— CZK
- Average monthly earnings
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- Statutory multiple
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- Gross severance
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- Net (approx., after 15% tax)
- —
Severance is not subject to social or health insurance, but it is taxed. The net figure is approximate (a 23% rate or tax credits may apply to larger amounts).
When are you entitled to severance?
Severance is due under §67 of the Labour Code when employment ends by the employer's notice or by agreement for organisational reasons (§52 a–c): the employer is dissolved or relocated, or the employee becomes redundant. The amount depends on the length of employment:
- • employment shorter than 1 year → 1× average monthly earnings,
- • 1 to 2 years → 2× average monthly earnings,
- • 2 years or more → 3× average monthly earnings.
For an occupational injury or disease (§52 d) the severance is at least twelve times the average earnings.
Taxation of severance
Severance does not enter the assessment base for social and health insurance — no contributions are paid from it. It is, however, subject to income tax (15% advance, 23% for high amounts). It is payable after the employment ends, on the nearest pay date unless agreed otherwise.
Official sources
For guidance only. The actual entitlement and amount are governed by the Labour Code and the circumstances of termination.
Frequently asked questions
How much is statutory severance pay? +
Under §67 of the Czech Labour Code, severance for organisational reasons (§52 a–c) is one times the average monthly earnings if employment lasted less than 1 year, twice for 1 to 2 years, and three times for 2 years or more.
When is twelve times the average earnings due? +
At least twelve times the average earnings is due when employment ends due to an occupational injury, occupational disease or reaching the maximum permissible exposure (§52 letter d).
When is severance not due? +
Severance is generally not due when the employee gives notice, during the probationary period, on immediate termination, or for reasons on the employee’s side. The employer may provide higher than statutory severance.
Is severance taxed and are contributions paid? +
Severance is subject to income tax (15% advance, 23% for high amounts) but does not enter the assessment base for social or health insurance — no contributions are paid from it.
How is severance calculated? +
Severance is based on the average monthly earnings, derived from the average hourly earnings for the previous calendar quarter (§356 of the Labour Code) converted to a month using the weekly working time.
Related calculators
- Detailed payroll calculator — severance is included in the payslip.
- Net salary calculator and wage garnishment.
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