Severance Pay Calculator

Employees employed under a contract of employment are entitled to severance pay when their contract is terminated due to reasons not attributable to the employee — most commonly in a collective redundancy (at least 10 redundancies within 30 days at an employer with 20+ employees) or an individual dismissal for economic reasons. The legal basis is the Act of 13 March 2003.

The multiplier depends solely on length of service with the given employer: less than 2 years → ×1; 2–8 years (inclusive) → ×2; more than 8 years → ×3. Service at a previous employer does not count unless the business was transferred under a TUPE-equivalent transfer of undertaking.

Severance pay is capped at 15 times the national minimum wage in force on the date of termination. In 2026 the minimum wage is PLN 4,300 gross, so the cap is PLN 64,500 gross. No matter how high the employee's salary or how long their service, they cannot receive more than this amount under the Act.

Yes. Statutory severance pay is taxed as employment income under Polish Personal Income Tax law (PIT). The employer withholds an advance income tax payment. However, severance pay is exempt from ZUS social security contributions (both employee and employer), meaning the full gross amount is taxable but no pension, disability or health contributions are deducted.

No. The statutory severance under the 2003 Act applies only when termination is initiated by the employer for reasons not related to the employee. If the employee resigns voluntarily, severance is not legally required — unless the employment contract or company regulations grant a contractual severance.

The calculation base for severance pay is the employee's monthly remuneration computed in the same way as holiday pay equivalent (ekwiwalent urlopowy). This includes fixed components such as base salary as well as regular variable components (e.g., contractual bonuses and supplements). One-off and irregular payments are generally excluded. The detailed rules are set out in the Ordinance of 8 January 1997.

Severance must be paid no later than on the date the employment relationship ends. If the employer delays payment, the employee is entitled to statutory interest for late payment under the Civil Code. The claim for severance is subject to a three-year limitation period.

Polish labour law does not expressly prohibit paying severance in instalments, but in practice it is due in a lump sum on the last day of employment. Any instalment arrangement should be agreed in writing and cannot unilaterally reduce the statutory entitlement.

Yes. Under Polish unemployment benefit regulations, an employee who has received severance pay has the right to unemployment benefit delayed by the number of months corresponding to the severance multiplier (e.g., a 2-month severance delays benefit by 2 months). The benefit itself is not reduced, only the start date is postponed.

No. This calculator provides an indicative estimate only and does not constitute legal advice. The actual amount depends on individual contract terms, pay regulations, and the specific circumstances of dismissal. For binding advice consult an employment lawyer or the National Labour Inspectorate (Państwowa Inspekcja Pracy).