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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Government-wide, employees have been pressured to resign with promises of eight months’ severance pay, while those who stay are given no job security. Walter Pavlo, Forbes, 26 Feb. 2025 Factor in emergency savings, severance pay, unemployment benefits or income from a partner or family member. Margaret Cirino, NPR, 25 June 2025 The Trump administration expects 5 to 10 percent of federal employees to accept Trump's eight months of severance pay offer, Axios reported. Matt Robison, Newsweek, 18 Feb. 2025 Former workers posted on social media that they were given 10 weeks of severance pay. Piper Heath, Los Angeles Times, 11 June 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

Browse Nearby Words

Cite this Entry

“Severance pay.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/severance%20pay. Accessed 25 Jul. 2025.

More from Merriam-Webster on severance pay

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!