Reviewed By: Scott Hickam (MBA, Finance)
Enter the employee’s annual salary ($) and the total months of pay received from the settlement into the Employment Settlement Calculator. The calculator will evaluate the Employment Settlement.
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Employment Settlement Formula
The following two example problems outline the steps and information needed to calculate the Employment Settlement.
ES = AS / 12 * MP
Variables:
- ES is the Employment Settlement ($)
- 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 = ?
