In the name of “competitive market standards” PayPal has updated the US-ERISA severance document effective Feb 1, 2025.
It changes severance compensation from an effective base rate of 12 weeks for most employees (2 weeks for no notice + 10 severance weeks) to 10 weeks flat. Previously you would accrue an additional week every year beginning on your 5th anniversary but now you accrue 2 weeks every year beginning your 6th and ending your 13th. This means this updated plan effectively reduces severance for any employee who doesn’t have 7 years or more of service, impacting employees at the 5 year mark the most.
I am not sure if there are any changes to AIP severance off the top of my head so if anyone has the 2023 severance document, please compare it to the just issued one.
Even if US layoffs aren’t happening soon, it’s important to keep yourself informed on your severance benefits as an effective decrease for most employees like this shows you can’t rely on a company policy at a given time to protect yourself. At-will employment is so fun.