How to Calculate Canadian Severance Pay

→ Open the Canada Severance Pay Calculator

Ontario, in steps

1. Termination pay: 1 week under a year, 2 weeks from 1–3 years, then 1 week per completed year, capped at 8 weeks.
2. Severance pay (only if 5+ years AND payroll ≥ $2.5M, or 50+ let go): 1 week per year plus months÷12, capped at 26 weeks.
3. Add both — they're separate entitlements.

Worked example (Ontario)

10.5 years, $1,400/week, large employer:

• Termination = min(10, 8) = 8 weeks → $11,200
• Severance = min(10.5, 26) = 10.5 weeks → $14,700
• Statutory total = $25,900

Federally, notice tops out at 8 weeks plus severance of the greater of 2 days/year or 5 days. The calculator handles both — but remember common-law notice is often higher.

Frequently asked questions

Is the statutory amount all I can get?

No. Most non-unionized employees dismissed without cause are owed common-law reasonable notice, often far more than the ESA minimum. Get advice before signing a release.

Does severance apply to small employers?

Ontario severance needs a payroll of $2.5M+ (or 50+ severed). Below that, you still get termination pay but not statutory severance.