Identify where the amount comes from
A concrete offer, a negotiation assumption, a social plan and the specific statutory case under section 1a KSchG are different starting points. A factor of 0.5 is not a universal entitlement. The calculator’s quick estimate uses a freely chosen scenario factor.
For example, €4,500 monthly pay × 3.75 years × 0.5 gives €8,437.50. This is scenario arithmetic, not a legal claim or negotiation forecast. The service-period rules for the specific statutory case can differ.
Treat tax as a separate step
Gross severance is not spendable net income. In detailed mode, compare the amount with the relevant year’s other taxable income and the calculator’s stated tax assumptions. Check whether the input is an annual taxable amount rather than gross salary.
The Fünftelregelung under section 34 EStG concerns qualifying extraordinary income. Eligibility must be checked individually. Payroll withholding and final assessed tax are different views. Do not budget an unconfirmed refund as a guaranteed payment on a specific date.
Calculate the monthly household gap
List costs that continue after employment ends and subtract sufficiently reliable other income. Include insurance, irregular costs and amounts that will become due later. Test a longer period before the next regular salary.
The budget table assumes €6,000 net severance solely to explain reserve arithmetic. That number has not been calculated from the gross example above. The two examples demonstrate separate steps, not an individual gross-to-net result.
Check timing and benefit consequences
The reserve calculation assumes the money is already available. Test a delayed payment and keep an additional safety margin. One-off expenses reduce the calculated runway.
The Bundesagentur für Arbeit explains how termination, severance and release from work can affect Arbeitslosengeld. Check applicable notice periods, registration duties and possible suspension or deferral separately. The household budget example cannot establish benefit eligibility.
Worked example
| Assumption | Amount |
|---|---|
| Existing liquid reserve | €12,000 |
| Additional assumed net severance | €6,000 |
| Monthly spending | €3,200 |
| Other monthly income | €2,000 |
| Monthly gap | €1,200 |
(€12,000 + €6,000) / (€3,200 − €2,000) = 15 months, assuming all payments are available and income and spending remain unchanged. One-off costs and an additional safety buffer shorten the runway.
Sources to cross-check
Examples explain arithmetic using stated assumptions. They are not individual tax, legal or financial advice.
Methods and review status