Enter the employee’s annual salary ($) and the total months of pay received from the settlement into the Employment Settlement Calculator. The calculator will evaluate the Employment Settlement.

## Employment Settlement Formula

The following two example problems outline the steps and information needed to calculate the Employment Settlement.

**ES = AS / 12 * MP**

Variables:

- ES is the Employment Settlement ($)
- AS is the employee’s annual salary ($)
- MP is the total months of pay received from the settlement

## How to Calculate Employment Settlement?

The following steps outline how to calculate the Employment Settlement.

- First, determine the employee’s annual salary ($).
- Next, determine the total months of pay received from the settlement.
- Next, gather the formula from above = ES = AS / 12 * MP.
- Finally, calculate the Employment Settlement.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

employee’s annual salary ($) = 60,000

total months of pay received from the settlement = 3

ES = AS / 12 * MP** **= ?