Severance payments are a critical component of employee compensation in many countries. These payments, often mandated by local labor laws, are provided to employees when their employment is terminated, whether due to redundancy, layoffs, or other eligible reasons. The amount typically depends on factors like the employee’s length of service and the country’s specific legal requirements.

Ensuring compliance with these regulations is not just a legal obligation but also a way to foster trust and transparency in employment practices.

Severance accrual is the accumulation of money over the course of an employee's agreement to pay final severance obligations. These obligations are based on the length of the employee's service.

Each month, Multiplier will include a Severance Accrual charge in the client's monthly invoice. This amount is set aside to cover the employee's statutory severance entitlement in the event of termination.

Unlike the deposit invoice, the Severance Accrual is a separate charge that appears in the monthly invoices. By accruing this amount over time, we help clients avoid large, unexpected severance payments at the time of termination.

Severance accrual helps clients avoid unexpected financial burdens. Instead of facing a large, lump-sum payment at the time of termination, severance accrual allows for small, predictable contributions to be set aside monthly. This proactive approach ensures:

Severance accrual safeguards both your business and your employees, providing peace of mind and financial stability.
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Here is the list of countries where severance pay is a mandatory requirement. The accrual periods and payment amounts differ based on the specific regulations of each country.