Employment Settlement Calculator

Calculate Employment Settlement



Formula

The formula to calculate the Employment Settlement is:

\[ ES = \frac{AS}{12} \times MP \]

Where:

What is Employment Settlement?

An Employment Settlement is a compensation structure where an employee receives a lump sum payment based on their annual salary and the total months of pay agreed upon in the settlement. This type of settlement is often used in cases of employment termination or severance agreements.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ ES = \frac{60,000}{12} \times 6 = 5,000 \times 6 = 30,000 \text{ dollars} \]

The Employment Settlement is $30,000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ ES = \frac{80,000}{12} \times 3 = 6,666.67 \times 3 = 20,000 \text{ dollars} \]

The Employment Settlement is $20,000.