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Severance calculator
Severance calculator for dismissal.
Estimate severance pay for length of service for a dismissal without cause under Art. 245 of Argentina's Labor Contract Law (LCT), and see how the number breaks down.
Free, instant estimate. · Based on Art. 245 LCT · No sign-up · Not a substitute for professional advice
Estimator
Estimate your severance pay for length of service
Enter the three figures and calculate the core component of Art. 245 LCT. This is an approximate estimate, not a definitive legal calculation.
Estimated severance for length of service
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⚠ An estimate only, based on Art. 245 LCT (severance for length of service). It does NOT include:
- the collective-bargaining cap (Vizzotti doctrine)
- the notice period
- month-end integration
- the prorated 13th-month bonus (SAC) or vacation pay
- special cases (pregnancy, marriage, union representation, etc.)
How it's calculated
What Art. 245 of the LCT says
Art. 245 of Argentina's Labor Contract Law (LCT) sets the severance for length of service on a dismissal without cause: one month of the employee's best regular monthly compensation for each year of service or fraction over three months, with a minimum of one month. That's the component this calculator estimates.
A dismissal without cause usually also adds other items this calculator does not estimate: the notice period (or its substitute payment), month-end integration, the prorated 13th-month bonus (SAC) on those items, and unused prorated vacation pay.
How XNómina helps
Your data ready to calculate with your accountant
XNómina runs and documents payroll under each collective agreement, period after period. When an employee leaves, you already have the best monthly compensation, length of service, and item-by-item detail for each employee at hand — so you and your accountant can work out the final settlement with the right numbers, without rebuilding anything from scratch.
Data ready when someone leaves
Each employee's best compensation and length of service are one click away, so the final settlement calculation goes fast and without data-entry errors.
Frequently asked
What people usually ask about severance pay for dismissal
How is severance pay for dismissal calculated?
Under Art. 245 of the LCT, severance for length of service equals one month of the employee's best regular monthly compensation for each year of service or fraction over three months, with a minimum of one month. This calculator estimates that core component.
What is "best regular monthly compensation"?
It's the highest gross monthly pay the employee received during the last year (or over the whole employment, if it lasted less), considering the usual taxable earnings. It does not include extraordinary or non-taxable payments.
Does a fraction of a year count toward the calculation?
Yes. If the fraction of the last year worked is over three months, it counts as a full year. If it's three months or less, it isn't added.
Does this calculator include the notice period and the 13th-month bonus?
No. This calculator estimates only the severance for length of service (Art. 245). The notice period, month-end integration, the prorated 13th-month bonus (SAC) and prorated vacation pay are separate items also typically paid in a dismissal without cause.
Is this calculator legally valid?
No. It's an approximate estimate of the stable core of the calculation, meant as a quick reference. It doesn't account for the collective-bargaining cap, special cases, or the particulars of each employment relationship. For a definitive calculation, consult your accountant or a labor lawyer.
Does XNómina replace my accountant or legal advisor?
No. XNómina is a management tool that gives you the data and documents in order; it does not replace your firm's accounting or legal advice.
Keep payroll and offboarding in order from day one.
Run payroll by collective agreement, keep every figure on record, and when someone leaves, the calculation with your accountant is fast.