LayOff – Calculator – Pollo Digital

Layoff in Germany calculator

Plug your numbers and go ahead! If you don’t know it all – no worries, you will still be able to get better at understanding your options anyway.

❗Caution: this might not be specific, but this is intended to give you a feel for the calculation. In order to make it very specific, you’ll need to run proper calculations based on your own tax class and situation.

❗I usually advise not to sign Mutual Agreements if you don’t want to leave. It is surprising, but many people do exactly that. Only sign it if you truly want to leave and it aligns with your personal goals, plus the severance will keep you afloat for 3 months in case you get a benefits block.

Your details

Monthly gross salary (€) Net estimated using German tax brackets

Years at company Enter as decimal — e.g. 3.5 = 3 years 6 months. Used for Abfindung (severance) calculation.

Aufhebungsvertrag (mutual termination) bonus — if applicable (€ gross) Any lump sum bonus offered on top of Abfindung (severance). Leave at 0 if none.

Abfindung (severance) base factor 0.5 conservative · 1.0 typical · 1.5 strong negotiation

Remaining salary months — notice period (Kündigungsfrist) How many paychecks until your last day if you sign now? Add your best guess of how many more salaries before termination arrives.

Assume 3-month Sperre (ALG1 / unemployment benefit block) for Aufhebungsvertrag (mutual termination) scenarios — the Arbeitsagentur (employment agency) blocks ALG1 (unemployment benefit) for 3 months if you sign a mutual agreement. Leave on unless you have specific grounds to avoid it.

Health insurance (Krankenversicherung) during Sperre: In most cases, AfA covers your KV during the Sperre period. Exception: if your Abfindung is high enough to trigger a Ruhenszeit (a period where the Arbeitsagentur considers your notice period “compensated”), you lose AfA coverage and must self-insure. The minimum voluntary GKV contribution is around €220/month — PKV holders pay more. Ask your Arbeitsagentur whether Ruhenszeit applies before signing anything.

Scenario comparison

Lump sum vs. extended tenure

Both options may apply when you sign an Aufhebungsvertrag (mutual termination agreement). Both might trigger the Sperre (ALG1 block). The choice is about when you receive your money (with your last pay check) and how long you stay formally employed (you can use the money to stay employed longer).

Option A — Lump sum

Bonus and Abfindung (severance) paid with your last paycheck. Employment ends on your notice date. You start ALG1 (unemployment benefit) after the Sperre period.

✓ Clean break and certainty
✓ ALG1 starts as soon as possible
✓ Fünftelregelung (one-fifth rule) tax benefit on Abfindung via tax return

✗ Lump sum taxed heavily upfront (40–50%)

Option B — Extended tenure

You stay employed beyond your notice date. Your bonus and Abfindung (severance) effectively fund your continued salary. Useful for visa timing or job search runway.

✓ Longer formal employment status
✓ Helpful for Niederlassungserlaubnis (permanent residence) or Blue Card timing

✗ You pay employer’s Sozialabgaben (social contributions) yourself (~20% of gross extra per month)
✗ Actual net pay much lower than normal salary
✗ Delays ALG1 start further

⚠️ Educational only — not legal or financial advice. Net salary estimated using approximate German tax brackets (actual depends on Steuerklasse / tax class, Kirchensteuer / church tax, etc.). Bonus and Abfindung (severance) taxed at ~42% flat estimate — actual rate varies. ALG1 (unemployment benefit) = 60% of estimated net (67% with children — reduce your gross by ~10% to simulate). Health insurance (Krankenversicherung): AfA covers KV during Sperre and ALG1 for GKV members — except when Ruhenszeit applies (triggered by a high Abfindung), in which case you self-insure at ~€220/month minimum. PKV (private health insurance) holders pay the difference above the GKV-equivalent contribution. Fünftelregelung (one-fifth rule) reduces Abfindung tax but is claimed retrospectively via your Steuererklärung (tax return) — not reflected here. Always consult a Fachanwalt für Arbeitsrecht (specialist employment lawyer) before signing anything.

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