Ministry of Labour Ontario Severance Pay Calculator

Calculate your Ontario severance pay using the Ministry of Labour's official guidelines. This calculator helps employees determine their entitlement based on employment duration and salary.

How to Calculate Ontario Severance Pay

Ontario severance pay is calculated based on the length of your employment and your average weekly earnings. The Ministry of Labour provides specific guidelines for determining eligibility and the amount of severance pay owed.

Eligibility Requirements

To qualify for severance pay, you must meet the following criteria:

Be an employee of an Ontario employer
Have worked for the employer for at least 12 months
Have been laid off or terminated without just cause
Have earned at least the minimum average weekly earnings

Calculation Steps

Determine your employment duration in months
Calculate your average weekly earnings
Apply the severance pay rate based on your employment duration
Multiply your average weekly earnings by the severance pay rate

Note: The maximum severance pay amount is limited to 26 weeks of average weekly earnings for employees with 10 years or more of service.

Severance Pay Formula

The formula for calculating Ontario severance pay is:

Severance Pay = (Average Weekly Earnings) × (Severance Pay Rate)

The severance pay rate is determined by your employment duration:

12-23 months: 1 week
24-35 months: 2 weeks
36-47 months: 3 weeks
48-59 months: 4 weeks
60-71 months: 5 weeks
72-83 months: 6 weeks
84-95 months: 7 weeks
96-107 months: 8 weeks
108-119 months: 9 weeks
120+ months: 10 weeks (up to 26 weeks for 10+ years of service)

The average weekly earnings are calculated by dividing your total earnings by the number of weeks worked during the employment period.

Worked Examples

Example 1: 24-month employment

An employee with 24 months of service and an average weekly earnings of $1,200 would receive:

Severance Pay = $1,200 × 2 weeks = $2,400

Example 2: 60-month employment

An employee with 60 months of service and an average weekly earnings of $1,500 would receive:

Severance Pay = $1,500 × 5 weeks = $7,500

Example 3: 120-month employment

An employee with 120 months of service and an average weekly earnings of $1,800 would receive:

Severance Pay = $1,800 × 10 weeks = $18,000

Frequently Asked Questions

What is the minimum employment duration for severance pay?

The minimum employment duration is 12 months. Employees must have worked for at least one year to be eligible for severance pay.

How is average weekly earnings calculated?

Average weekly earnings are calculated by dividing your total earnings by the number of weeks worked during the employment period.

What happens if I have more than 10 years of service?

For employees with 10 years or more of service, the maximum severance pay is limited to 26 weeks of average weekly earnings.

Can I receive severance pay if I was terminated for just cause?

No, severance pay is not available if you were terminated for just cause. The termination must be without just cause to qualify.

Where can I find official Ministry of Labour guidelines?

You can find official guidelines on the Ontario government website.