For the purpose of estimating the dismissal cost, it is not sufficient merely to know what indemnities are due, but the reference income on which these indemnities are to be calculated needs to be clear. When analyzing the aggregated data, it is apparent that, in most cases where a severance indemnity or indemnity in lieu of notice is payable, it concern indemnities to be calculated on the sum of the annual base salary, the annual variable salary, and the annual benefits.
In only 17 out of the 52 countries that provide for a severance indemnity, there are also social security charges due on top of the indemnity. In eight of these countries, the charges are, however, capped.
In the table below, which you can click on to zoom in, you can find an overview of the calculation base of the indemnity in lieu of notice, severance indemnity, and other legal indemnities for every country analyzed. It also shows whether social security charges are due on such payments, and whether such charges are capped.