What is the difference between termination notice pay and severance pay?

Termination pay (up to 8 weeks) is pay in lieu of notice required for all layoffs. Severance pay (1 week/yr up to 26 weeks) is an additional compensation benefit for eligible workers.

Is statutory severance pay subject to income tax withholding?

Yes, employers must withhold income tax from severance payments, though funds can be rolled into an RRSP to defer taxes.

CanadaCanada Statutory Severance & Termination PayFinance

Canada Statutory Severance & Termination Notice Pay Calculator

Calculate minimum statutory severance and termination pay in lieu of notice under Ontario Employment Standards Act (ESA) and Canada Labour Code (up to 8 weeks termination notice pay plus 1 week severance pay per year of service up to 26 weeks maximum).

Emploi et Travail Salaires et Rémunérations Droit du Travail

Données du Simulateur

En temps réel

Regular Gross Weekly Wage (CAD $/week)

CAD $/wk

Sélection rapide :

Completed Full Years of Continuous Service6 yrs

1 yrs35 yrs

Statutory Severance Pay Eligibility (Employer Payroll > $2.5M)

Résultat CalculéCanada Statutory Severance & Termination Pay

Total Statutory Termination & Severance Pay Package

8,400CAD $

Statutory Severance Pay (1 week/yr up to 26 weeks)

0 CAD $

Termination Pay in Lieu of Notice (Up to 8 weeks)

8,400 CAD $

Détail du Calcul

Termination Notice Pay

8,400 CAD $

Severance Pay

0 CAD $

Total Payout Package

8,400 CAD $

Méthodologie de Calcul

Termination Notice Pay = min(Years of Service, 8) * Regular Weekly Wage. Severance Pay (if eligible) = min(Years of Service, 26) * Regular Weekly Wage. Total Payout = Notice Pay + Severance Pay.

Avertissement Légal et Pédagogique

Calculates provincial minimum statutory entitlements. Common law reasonable notice entitlements may exceed statutory minimums.

Ce simulateur est conçu à des fins éducatives et informatives. Les résultats ne constituent pas un conseil financier, fiscal ou juridique contraignant.

Foire Aux Questions

Statutory severance applies to employees with 5+ years of service if the employer has a payroll of at least $2.5M or terminates 50+ workers in 6 months.

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Données du Simulateur

Détail du Calcul

Méthodologie de Calcul

Avertissement Légal et Pédagogique

Foire Aux Questions

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