PA UC severance pay delay - how many weeks deducted from benefits & calculation method?

I went through this exact situation last year. The formula they use is: (Your total severance amount) ÷ (your weekly benefit rate) = number of weeks your benefits are delayed. So if your weekly benefit rate is $700, and you got $22,500, that would be about 32 weeks of delay. It's absolutely ridiculous - they basically penalize you for getting severance by making you wait until your severance would have 'run out' if it had been paid weekly. The 40% state average wage thing doesn't apply to severance calculations - that's for something else.

wat the guy above said isnt right. my cousin got severance in december and PA takes your WEEKLY severance amount (total divided by weeks of severance coverage) and only delays benefits for weeks where that weekly amount exceeds your UC benefit rate. they dont just add all the weeks up and make u wait. better check with someone who knows for SURE

THE WHOLE SYSTEM IS RIGGED!!!! I waited 16 WEEKS last year because of severance and even then they messed up the calculation and I had to appeal. They make these rules complicated ON PURPOSE so people give up. My neighbor works at the unemployment office (not telling which one LOL) and she says they're understaffed by like 40% right now and claims are piling up. Good luck ever getting someone on the phone!!!!

Here's the accurate information about PA UC and severance pay: 1. PA exempts severance up to 40% of the state average annual wage (currently $29,450 for 2025) 2. Since your severance ($22,500) is below this threshold, it should be FULLY EXEMPT and cause NO DELAY in your benefits 3. This is according to Section 404(d)(1.1) of the PA UC Law I'd recommend getting this clarified immediately because it sounds like whoever reviewed your claim made an error. Your severance should not be delaying your benefits at all based on the figures you provided.

Yes, I'm certain. The PA UC law specifically states that severance pay is only deductible from UC benefits if it exceeds 40% of the state average annual wage. Since your $22,500 is below the current threshold of $29,450, none of your severance should be deductible. Unfortunately, many claims examiners make errors with these calculations. You need to speak directly with a claims examiner to get this resolved, not just a regular call center rep.

Yes, they fixed it during that same call. The examiner admitted they're seeing a lot of miscalculations with severance cases since they changed the threshold amount for 2025. She removed the severance hold on my claim and released my payments, which I received within 2 days. Just make sure you have your severance documentation ready when you call so you can prove the amount is under the threshold.

UPDATE: You guys were right! I finally got through to an actual claims examiner yesterday and they confirmed my severance is under the threshold and shouldn't delay my benefits at all! The examiner said there was an error in how my severance was coded in the system. They're removing the hold and said I should see payments within 5-7 business days. Thanks everyone for your help - especially the clarification on the 40% threshold. What a relief!

glad it worked out for you! question - did you have to pay taxes on that severance? i just got laid off and getting severance next month but not sure how taxes work with that and unemployment

This thread is so helpful! I'm in a similar situation - got laid off in February and received $18,000 in severance. PA UC put a hold on my claim for "severance review" but based on what you all are saying, my amount should be well under the $29,450 threshold too. I've been calling for weeks trying to get through to someone who actually knows the rules. Did anyone else have luck with that Claimyr service that was mentioned? I'm getting desperate here - it's been 6 weeks with no payments and my savings are running low.

Just wanted to add my experience for anyone else dealing with this issue. I was laid off in December 2024 and received $25,000 in severance pay. PA UC initially put a severance hold on my claim for "review" that lasted 12 weeks! After reading threads like this one, I realized my severance should have been exempt since it was under the threshold. When I finally got through to a claims examiner (took multiple attempts over several days), they admitted there had been a processing error and my severance was incorrectly flagged as deductible. They removed the hold immediately and I received all my back payments within a week. The key is persistence - don't accept vague answers from general customer service reps. Keep pushing to speak with an actual claims examiner who can review your specific case and the severance calculations. Document everything and have your severance letter/stub ready to prove the exact amount. It's incredibly frustrating that so many people are experiencing the same systematic errors, but there is hope if you keep fighting for the correct determination!