Severance pay can be negotiated upon termination
Severance pay is a benefit that some may receive from the employer upon termination, usually when the employer has an interest in ending the employment. It is not something one is entitled to or obligated to accept, but something that is negotiated. Feel free to seek advice from a union representative.
Protect your SGI by registering with Arbetsförmedlingen
To be eligible for benefits such as sickness and parental allowance from Försäkringskassan, you need to have a sickness benefit qualifying income (SGI). To prevent it from being reset by Försäkringskassan when you receive severance pay, you must be registered as a job seeker with Arbetsförmedlingen during the entire period you are unemployed.
To Försäkringskassans SGI-guide
When can you receive unemployment benefits after severance pay?
If you have not found a new job after the severance pay period, you may be eligible for unemployment benefits. When we assess whether the conditions are met, the severance pay is counted as salary and worked time.
The severance pay period starts the day after the employment ends according to the employer certificate. The timing of the severance pay disbursements does not affect when you can be considered unemployed.
How the severance pay period is calculated
The period that the severance pay corresponds to is calculated by dividing the total value of the severance pay by the average salary the applicant had during the past year.
The severance pay includes values received due to the termination of employment; for example, money, pension contributions, and the benefit value of a company car that was kept. Services that cannot be converted into money, such as an outplacement consultant, are not counted as severance pay.
Small severance pay – risk in voluntary resignation
If it is not a case of redundancy, the unemployment fund must always assess the reasons for the person leaving their job. If there are no valid reasons to avoid suspension, the unemployment fund will impose a sanction period during which the person is not entitled to benefits. Therefore, small severance payments may result in a period without unemployment benefits, but this risk does not exist if the severance pay corresponds to at least three months’ salary. Read more about voluntary resignation here
How to get a decision
We are happy to help you with a decision on how long the severance pay period will be and what your first day of unemployment will be if you have not found work. To start receiving unemployment benefits after the severance pay period, fill in Apply for benefits in Mina sidor. Do the following:
Register with Arbetsförmedlingen the first day after your employment ends. This is important to maintain your SGI if you become ill or go on parental leave.
Upload a copy of the severance pay agreement in Mina sidor.
Request an employer certificate from your employer via Mina sidor.
Starting a business and severance pay
If you have received severance pay and started your own business, you may still be entitled to unemployment benefits based on your previous employment if you later become unemployed. The severance pay is counted as work, and if you close your business within 24 months from the last day covered by the severance pay, you may receive unemployment benefits based on your previous monthly salary.