When you are handed a severance agreement, the immediate question is: Is this fair? The short answer is that fairness is relative to your industry, role, and tenure, but typically a fair package exceeds the basic statutory minimum and offers at least 1-2 weeks of enhanced pay per year of service.
What Counts as a Fair Severance Package?
Fairness in severance (or redundancy pay) isn’t just a feeling—it’s a math equation based on market precedence. A standard package in 2026 usually consists of three parts:
- Notice Pay: Paid out or worked.
- Statutory Minimums: If legally mandated (like in the UK/AU).
- Enhanced Ex-Gratia Payment: The discretionary bonus portion.
Based on our dataset, the median white-collar ex-gratia enhancement is 1.5 to 2 weeks per year of service. If you’re receiving exactly 1 week per year without a floor, you are likely in the bottom 30% of market offers.
How Do I Compare My Offer?
The best way to determine fairness is to look at data from professionals like you.
- Tenure: Are they recognizing your full years of continuous service?
- Seniority: Directors and VP-level roles typically receive significantly higher multipliers than entry-level roles.
- Benefits: Did they include extended healthcare (COBRA) or outplacement?
| Factor | Below Average | Fair / Average | Excellent |
|---|---|---|---|
| Weeks per Year | < 1 week | 1-2 weeks | 3+ weeks |
| Minimum Floor | 0 weeks | 4 weeks | 8+ weeks |
| Healthcare | 0 months | 1-3 months | 6+ months |
What’s the Average by Role and Tenure?
Seniority plays a huge role in what is considered “fair.” To see exact averages based on your title, read our breakdown: How Much Severance Pay Should You Get?
Action Step: Audit Your Offer
Don’t guess in the dark. You can enter your specific numbers into our Audit My Offer tool. It compares your package against thousands of others in our database to give you an immediate “Fairness Score.”
For a complete overview of your rights, return to our main guide: Severance & Redundancy Pay: The Complete Guide.