What are Severance Benefits in North America?

North American countries (USA, Canada, Mexico) have different systems for termination benefits. Gratuity as known in other regions doesn't exist, but severance pay may be offered.

In the USA and Canada, severance pay is generally not mandatory but may be offered by employers. Mexico has mandatory severance pay requirements.

Our calculator helps you understand these benefits for North American countries.

How Severance Benefits Work in North America

USUSA Severance

Severance pay is not mandatory but may be offered. Typically 1-2 weeks per year of service, varies by state and employer.

Minimum service: 0 year

CACanada Termination Pay

Termination pay varies by province. Generally 1-2 weeks per year of service, subject to provincial employment standards.

Minimum service: 0 year

MXMexico Severance

Mandatory severance pay (indemnización) typically 3 months salary plus 20 days per year of service.

Minimum service: 0 year

Tips & Best Practices

📋 Check Employment Contract

Review your employment contract and company policies for severance pay terms.

💰 Understand State/Provincial Laws

Laws vary by state (USA) and province (Canada). Check local employment standards.

Negotiate Severance

In USA and Canada, severance can often be negotiated. Understand your entitlements.

Why Use Our Calculator?

Multi-Country Support

Calculate benefits for USA, Canada, and Mexico with their specific regulations.

Frequently Asked Questions

Severance pay is generally not mandatory in the USA unless specified in an employment contract or company policy. Some states may have specific requirements.
In Mexico, mandatory severance pay typically includes 3 months salary plus 20 days per year of service, plus other benefits as per labor law.