severance pay

noun

: an allowance usually based on length of service that is payable to an employee on termination of employment

Examples of severance pay in a Sentence

Recent Examples on the Web
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The new wording also gives the council wiggle room in deciding the city manager's annual salary, contract term and amount of severance pay. Maritza Dominguez, AZCentral.com, 4 Oct. 2025 When the workforce is in flux, for instance, severance pay and related expenses can quickly add up. Jasmin Malik Chua, Sourcing Journal, 8 Sep. 2025 Employees sued, alleging that 6,000 former Twitter employees were owed $500 million or more in collective severance pay. PC Magazine, 23 Aug. 2025 New York Reuters — Elon Musk’s social media company X Corp has reached a tentative agreement to settle a lawsuit filed by former Twitter employees who said they were owed $500 million in severance pay. Reuters, CNN Money, 22 Aug. 2025 See All Example Sentences for severance pay

Word History

First Known Use

1943, in the meaning defined above

Time Traveler
The first known use of severance pay was in 1943

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Cite this Entry

“Severance pay.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/severance%20pay. Accessed 7 Oct. 2025.

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