Calculation
Calculation of severance pay - old system
The amount of severance pay (scale limit) is based on the number of eligible weeks of employment (while respecting the upper limit on severance pay) and is measured in the number of months of remuneration.
Scale limit:
-
after 156 weeks: 2 months’ remuneration
-
after 260 weeks: 3 months’ remuneration
-
after 520 weeks: 4 months’ remuneration
-
after 780 weeks: 6 months’ remuneration
-
after 1040 weeks: 9 months’ remuneration
-
after 1300 weeks: 12 months’ remuneration
Even in the event of the repeated assertion of severance pay entitlement claims, the maximum limit of 12 months’ remuneration may not be exceeded.
This restriction on the maximum amount of severance pay, measured in months of remuneration, leads to another restriction which regulates the amount of subsequent severance pay entitlements:
What happens if severance pay has already been paid out previously?
In the event that an employee is entitled to severance pay pursuant to BUAG several times in the course of their professional life, these entitlements can also be claimed consecutively.
The sum of the number of months’ remuneration must not be greater than the number that is due for all periods of employment.
Example:
|
Submission |
Employment contract |
Total severance entitlement |
|
1st submission |
5 years (=260 weeks) |
3 months’ remuneration |
|
2nd submission |
5 years (=260 weeks) |
1 month remuneration |
|
|
10 years (=520 weeks) |
4 months’ remuneration |
The total period of employment in this case is 10 years. Based on the scale limits, 4 months’ remuneration are due for these 520 weeks of employment. For this reason, the worker will receive only 1 month’s additional remuneration for the second submission, as three months’ remuneration have already been paid out.
Warning: Based on the provisions for the new severance pay system, employees are subject to the BMSVG for future severance pay entitlements after claiming severance pay under the old system.