Women and East Germans disadvantaged in terms of severance pay – careers

Women and East Germans are disadvantaged when it comes to severance payments. This is proven by data from the law firm Chevalier Rechtsanwälte in Berlin, which specializes in labor law, and which evaluated 1390 severance pay data in an internal analysis. The so-called severance payment factor was compared: The severance payment in euros is divided by the gross monthly salary and multiplied by the full years of employment. Accordingly, the average severance payment factor for men is 0.65 and for women 0.59. This means that men with a salary of 3000 euros and five years of employment would receive a severance payment of 9750 euros. For women it would be 8,850 euros, nine percent less. If you compare the absolute figures, the severance payment for women is significantly lower. They get an average of 7,800 euros when they leave the company, 41 percent less than men who receive 13,200 euros. This difference is related to the still low salary of women. The data also show that employers in eastern Germany pay their employees around 33 percent less severance pay than employers in western Germany. In the east (including Berlin) this is 8,600 euros, in the west an average of 11,100 euros is paid.

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