Rates updated for 2026
Severance pay calculator (2026)
Enter the average gross salary over the last 3 months and the number of negotiated compensatory salaries. The amount is taxed like a regular salary.
Estimated result
Estimated result: 0,00 lei
Severance pay breakdown
| Compensatory salaries (gross) | 0,00 lei |
|---|---|
| Notice paid without working | 0,00 lei |
| Total gross | 0,00 lei |
| CAS (25%) | 0,00 lei |
| CASS (10%) | 0,00 lei |
| Personal deduction | 0,00 lei |
| Income tax (10%) | 0,00 lei |
| Net amount received | 0,00 lei |
Estimate based on the general 2026 rates. This is not tax advice. For complex cases (special exemptions, meal vouchers, other income, particular situations) check with your accountant.
How severance pay is calculated in 2026
For a layoff not attributable to the employee (art. 65 Labor Code — position elimination), the law does NOT require the employer to pay severance. It becomes owed only if provided for in the collective bargaining agreement (CBA), the individual contract, or a social plan for collective layoffs. The number of compensatory salaries — often between 1 and 10 — is therefore negotiated, not a value fixed by law.
The 20-working-day notice period
The minimum notice period is 20 working days (art. 75 Labor Code). By default, the employee keeps working during this period and receives normal pay — it's not a separate lump sum. If the employer waives the work requirement and pays the notice period without the employee working, that amount is added to the calculation below.
How severance pay is taxed
Severance amounts have salary character and are taxed exactly like a regular salary: CAS 25%, CASS 10%, 10% income tax (with the personal deduction, where it applies). There is no general exemption for severance pay — every component of the final settlement follows the standard salary tax rules.
Worked example
Frequently asked questions about severance pay
- Is severance pay mandatory for any layoff?
- No. It's owed only if provided for in the collective bargaining agreement, the individual contract, or a social plan (for collective layoffs). Without a concrete legal basis, the employer isn't required to pay it.
- How many compensatory salaries are typically granted?
- It varies — CBAs commonly provide between 1 and 10 salaries, depending on seniority and company negotiation. There's no standard number set by law.
- Is the notice period always added to the severance amount?
- Not by default. The notice period (minimum 20 working days) is usually worked time paid normally. It's added separately only if the employer pays it without the employee working.
- Is severance pay taxed differently from salary?
- No. It has salary character and the same CAS 25%, CASS 10% and 10% income tax apply as for a regular salary.