Severance pay

Severance pay can be negotiated upon termination

Severance pay is a payment 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 rather something that is negotiated. It is advisable to seek guidance from a union representative.

Protect your SGI by registering with Arbetsförmedlingen

To be entitled to benefits such as sickness and parental compensation from Försäkringskassan, you need 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 without employment.

How the period for severance pay is calculated

If you are unemployed when the period covered by severance pay ends, you may receive unemployment compensation, and when the compensation provider assesses the income requirement, the severance pay is counted as salary. The period that the total amount corresponds to is calculated by dividing the total sum by your previous average salary. The timing of the severance pay disbursement does not affect when you are considered unemployed. Severance pay is allocated starting the day after the employment ends according to the employer.

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 you have kept. Services that cannot be converted into money, such as an outplacement consultant, are not counted as severance pay.

Small severance pay – risk with voluntary resignation

If it is not a case of redundancy, the unemployment compensation provider must always assess the reasons a person has for leaving their employment. If the reasons are not approved under the unemployment insurance rules, the person will be suspended for 45 compensation days, meaning 45 days without unemployment compensation. Therefore, small severance pay may result in a period without compensation from the unemployment fund.

Apply for a decision

We are happy to help calculate which day will be your first unemployed day after the severance pay period. The process is the same as when applying for unemployment compensation after the severance period ends.

1. Register with Arbetsförmedlingen on the first day after your employment ends. This is important to maintain your SGI if you become ill or plan to take parental leave.

2. Upload a copy of the severance pay agreement in Mina sidor.

3. Request a certificate from your employer confirming the reason for the termination of your employment.