data tool
Severance pay calculator for Ontario
Ontario's Employment Standards Act gives two separate minimums. Termination pay replaces notice: 1 week under a year of employment, 2 weeks from 1 to 3 years, then a week per year up to 8. Severance pay adds a week for each year and part year, up to 26, for employees with 5 or more years whose employer has a $2.5 million payroll.
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- No watermark, no file limit
How it works
- 1
Enter the dates
Type the first and last day of employment.
- 2
Enter the regular weekly wage
Type the regular wage for a regular work week, before deductions.
- 3
Set the employer test
Leave the box ticked if the employer's global payroll is $2.5 million or more, or the closure test is met.
- 4
Read both lines
Termination pay and severance pay appear separately, with the total and the length of employment.
Termination pay and severance pay are different
Termination pay is pay instead of written notice. Every employee continuously employed for at least three months is owed notice or termination pay, from 1 week under one year to 8 weeks at eight years or more. Severance pay compensates for the loss of a long job and is owed only to employees with five or more years whose employer meets the payroll or closure test. An employee can be owed both, and the calculator shows them as two lines because they are paid under different parts of the Act.
The notice chart
The Ministry's guide sets the notice owed after at least three months of continuous employment: less than 1 year, 1 week; 1 year but less than 3, 2 weeks; 3 but less than 4, 3 weeks; 4 but less than 5, 4 weeks; and so on, one week per year, up to 8 weeks for 8 years or more. During the notice period the employer cannot cut the wage rate and must keep benefit contributions going. Termination pay is the regular wages the employee would have earned over that period.
The $2.5 million payroll test
Severance pay is owed only if the employer has a global payroll of at least $2.5 million, or severed 50 or more employees in six months because all or part of the business closed permanently. Global payroll includes wages paid everywhere, not only in Ontario, so a small Ontario office of a large company usually meets it. Employment counted for severance includes all time with the employer, continuous or not, and whether active or not.
How severance is counted
Severance pay is the regular weekly wage times the completed years of employment plus the completed months of an unfinished year divided by 12, up to 26 weeks. Someone with 8 years and 6 months gets 8.5 weeks. The Ministry's example uses an employee working 40 hours at $25 an hour, a regular wage of $1,000 a week. The calculator follows that method from the dates you type.
Why common law matters
The ESA sets a floor. An employee whose contract does not validly limit their rights is also entitled to reasonable notice at common law, which courts set by age, length of service, role and the job market, and which can run to many months. A termination letter that offers only the ESA minimum without a valid contract clause invites a claim. The calculator does not estimate common law notice; it gives the statutory minimum that is owed in every case.
Limits
- Law checked on 21 October 2026 against the Ontario Ministry of Labour's guide to the Employment Standards Act 2000. This is arithmetic, not legal advice.
- Statutory minimums only; common law reasonable notice for a non unionized employee is often much higher and is not worked out here.
- No mass termination rules for 50 or more employees in four weeks, and no special cases such as construction workers.
- The tool counts employment from the dates you type; breaks and earlier periods of employment can change the ESA's counting.
What it does not do
- It does not tell you whether a contract's termination clause is enforceable.
- It does not add vacation pay or benefits continuation.
- It does not store the dates or wage.
Questions people ask
How much severance pay am I entitled to in Ontario?
One week of regular wages for each completed year of employment, plus a part week for an unfinished year based on completed months, up to 26 weeks, if you have five or more years and your employer has a global payroll of at least $2.5 million or the closure test applies.
What is the difference between termination and severance pay?
Termination pay replaces the notice an employer must give and is owed after three months of employment. Severance pay is an additional sum for employees with five or more years at larger employers. They are separate entitlements, and someone can be owed both at once.
Does common law notice replace the ESA?
No. The ESA is a minimum that always applies. Common law reasonable notice can be higher and applies unless a valid contract limits it to the ESA. An employer can never give less than the ESA minimum, even with a contract.
Is severance pay owed if I resign?
Generally no, because severance pay is owed when the employer severs the employment. Some situations, such as resigning during a notice period after being given notice, or a constructive dismissal, can still lead to severance; the Ministry's guide sets out those cases.
Is termination pay paid as a lump sum?
Yes. Termination pay is a lump sum equal to the regular wages for the notice period, paid by the later of seven days after the employment ends or the next regular pay day. Severance pay can, with agreement, be paid in instalments over up to three years.
What counts as the regular weekly wage?
For someone with a regular work week, it is the wage for that regular week, usually hours times the hourly rate. For someone without a regular week, the Act uses an average of the weeks worked in the 12 weeks before the employment ended.
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Background reading: the question page on this.
Written and checked by the OneCraft team. Last checked .