Microsoft is offering buyouts to 60,000 workers: How US employees can calculate their potential severance pay

Microsoft employees considering the company's latest buyout offers can estimate their potential severance using the payment formula tied to their internal job level and length of service. The offers vary by employee, with base pay determining the value of the severance weeks they are eligible to receive.

Around 60,000 employees are eligible for the program. The offers cover workers on select teams in the US, Canada, India and the UK, with eligible employees having until early December to decide whether to leave.

Amy Coleman, executive vice president and chief people officer said, "This is a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources," adding that, "Some organizations are providing the Voluntary Exit Offer, and some are not. Participation varies based on each business’s priorities, customer commitments and workforce needs."

How Microsoft's buyout payments are calculated

Microsoft's standard severance terms offer different payment formulas depending on an employee's level.

US employees at level 64 and below are offered one week of base pay for every six months of service. Those at levels 65 to 67 are offered two weeks of base pay for every six months of service, according to offers reviewed by Business Insider.

Microsoft's internal levels range from 59 for entry-level roles to 70 for vice presidents. The company individualizes buyout offers based on job level, location and tenure.

How much severance can MSFT employees receive

Microsoft caps standard severance at 39 weeks of base pay for employees at level 67 and below. Employees at level 68 are offered 12 months of salary under the standard severance plan.

These figures are the company's standard severance terms; an employee's specific offer determines the package available to them. The payment formulas can help eligible workers estimate their potential severance, but the amount will depend on their base pay and applicable terms.

Stock vesting and health insurance are included

The buyout offers also include continued regular stock vesting and health insurance.

For employees at level 67 and below, the standard stock-vesting severance offer provides six or 12 months of continued vesting, depending on years of service.

When Microsoft employees must decide

Eligible employees have until early December to accept the offer, with departures scheduled for the end of the year. A Microsoft spokesperson said there are no plans for another buyout at this time.

The program follows Microsoft's voluntary retirement initiative earlier this year, which was available to about 7% of its US workforce, or approximately 8,750 employees. That offer also followed the company's standard severance terms, including continued stock vesting for six or 12 months based on years of service.