Quick answer: You get severance pay when your employer ends your employment for organisational or health reasons — the amount is, by years of service, between one and four times your average monthly earnings on notice (Section 76 of the Labour Code). On termination by agreement it is one level higher. Below you will find a table and a worked example. Prepocty
When are you entitled to severance pay?
Entitlement arises if your employer ends your employment by notice or by agreement for organisational reasons (the post being abolished or moved, redundancy) or for health reasons. On notice, entitlement arises only after at least 2 years of service. Prepocty
If you resign yourself or are dismissed for a breach of duties, severance pay does not apply. Nor does it apply on termination during the probationary period.
How much is severance pay in 2026?
It depends on your years of service and on how the employment ends. On agreement, severance pay is one level higher than on notice:
| Years of service | Notice | Termination agreement |
|---|---|---|
| less than 2 years | — | 1× |
| 2 – 5 years | 1× | 2× |
| 5 – 10 years | 2× | 3× |
| 10 – 20 years | 3× | 4× |
| 20 years and more | 4× | 5× |
(× = average monthly earnings)
How is severance pay calculated (example)?
Severance pay is calculated from the average monthly earnings, established under Section 134 of the Labour Code, as a rule from the salary for the preceding calendar quarter. Example: an employee worked for 7 years with average earnings of €1,500. On notice for organisational reasons they get 2 times, that is €3,000; on agreement 3 times, that is €4,500. Dvaplusdva Financnekalkulacky
Will I get both severance pay and a notice period?
Yes. Since 2013 entitlement to severance pay and to a notice period have not excluded each other — on notice for reasons on the employer's side you get both. Financnekalkulacky
What is the difference between severance pay and a retirement allowance?
You get severance pay on losing your job for organisational or health reasons. A retirement allowance (Section 76a) is paid on first retiring and is, as a rule, one month's average earnings. Mojprijem
Lost your job? Do not wait
Take a look as well at notice periods and a template, and at current job vacancies. You will find the exact wording in the Labour Code.
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