Extra severance pay
If you have turned 40 and have at least 12 years’ seniority in the organisation, Finansforbundet’s collective agreements entitle you to extra severance pay if your contract is terminated.
How much severance pay am I entitled to?
The amount paid increases with age as shown in the table:
|
Age |
Extra severance pay |
|
40-44 years |
1 month's salary |
|
45-49 years |
2 months’ salary |
|
50-54 years |
3 months’ salary + 8 months’ pension contributions |
|
55-59 years |
5 months’ salary + 20 months’ pension contributions |
|
60 years and older |
6 months’ salary + 20 months’ pension contributions |
What about pension and the state pension age?
Finansforbundet has made sure that you will be paid your extra severance pay whether or not you retire in continuation of your contract termination or you have reached the state pension age – provided you fulfil the above-mentioned age and seniority requirements.
Not bad, huh? Am I entitled to more?
Yes, you are. In addition to the extra severance pay provided for by the collective agreements, you are entitled to a notice of termination of 1-6 months with pay – and to severance pay equivalent to 1-3 months’ pay stipulated in the Danish Salaried Employees Act – depending on your seniority in the organisation.
Can you give me an example?
Sure! Say you are 60 years old and are terminated after 17 years' service in the organisation, you will be entitled to:
- a 6 months’ notice period with full pay [Danish Salaried Employees Act]
- 3 months’ severance pay [Danish Salaried Employees Act]
- 6 months’ severance pay [Collective Agreement]
- 20 months’ pension contributions [Collective Agreement]
Total: 15 months’ salary and 20 months’ pension contributions.