Many employees negotiate a severance payment when they are fired.
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Dusseldorf Whether through dismissal, a settlement before the labor court or through a termination agreement: When an employment relationship ends, there is often a great deal of uncertainty. The possible unemployment and impending financial difficulties cause negative thoughts. Many employees negotiate a severance payment so that they do not get into trouble if they are fired.
Depending on the amount of the original salary and the years of service, this can be lavish. In order to determine the severance payment, half a month’s gross monthly salary is usually multiplied by the number of years in the company. But what many initially ignore: Even a severance payment must be taxed – and that can be expensive.
“Anyone who acts in good time before a severance payment is paid can often save several thousand euros,” says Florian Fischer, partner at the tax consultancy Fischer & Reimann. Together with attorney Pascal Croset, he reveals six tips that can help you get more net from the gross of a severance payment.
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