Canada Severance & Termination Pay Calculator
Under Ontario's Employment Standards Act you may be owed termination pay (notice) and, separately, statutory severance pay. See both from your service and weekly pay.
How to use it
- Enter your years of service. Termination pay starts after three months; statutory severance needs five or more years.
- Add your weekly pay. Your normal (non-overtime) gross weekly wages.
- See your entitlement. PayGlance shows termination pay (1 week/year, max 8) plus any statutory severance (1 week/year, max 26).
FAQs
What's the difference between termination pay and severance pay?
Termination pay is pay in lieu of notice - one week per year of service, to a maximum of eight weeks, after three months' service. Statutory severance pay is a separate entitlement of one week per year (max 26 weeks), but only if you have five or more years and the employer's Ontario payroll is at least $2.5 million.
Does this apply outside Ontario?
This uses the Ontario ESA baseline. Other provinces and federally-regulated workplaces have their own notice and severance rules, and common-law reasonable notice can be considerably higher than the statutory minimum.
Is severance taxable in Canada?
Yes. Both termination pay and statutory severance pay are taxable employment income, though some amounts may be eligible for transfer to an RRSP within limits.