Since the beginning of 2026, the severance pay paid in connection with an employee's retirement has been exempt from income tax within the limits of three average monthly salaries. However, this benefit does not apply automatically and not in the case of any dismissal.

The main condition is the collective agreement

Back in March, the Ministry of Taxes and Collections clarified that the norm established in Article 208 of the Tax Code: severance pay upon retirement is not subject to income tax within the limits of three average monthly salaries of the employee.

The key point, which was emphasized by the department, is that the severance pay must be paid in the manner and on the conditions provided for by the collective agreement or agreement. If the organization does not provide for such a payment at all, the new tax norm in itself does not give the employee the right to demand three salaries upon dismissal. It only determines which part of the already provided benefit can be exempt from tax.

What does not fall under the benefit?

The norm applies specifically to the benefit in connection with retirement. It does not extend to:

state pension itself;

ordinary salary for the last month;

compensation for unused vacation time;

any dismissal at the employee's own discretion;

severance pay for a different reason.

Thus, the basis for payment and the conditions of the collective agreement are of decisive importance.

If the benefit fits within three salaries

Let's consider the practice of applying this norm to specific examples. Suppose: the employee's average monthly salary is 2.5 thousand rubles, which means that three average monthly salaries together amount to 7.5 thousand rubles. If the employer, according to the collective agreement, pays a severance benefit of 7.5 thousand rubles, then the entire amount is fully exempt from income tax. In this case, the phrase "three salaries without tax" is literal.

If the benefit is larger – a second benefit applies

The situation becomes more complicated when the organization pays the pensioner more than three average monthly salaries. The Ministry of Taxes and Collections explains: severance pay is not related to compensation for performing labor duties. Therefore, another benefit from Article 208 of the Tax Code may be applied to the amount exceeding the limit.

In 2026, income that is not considered compensation for labor and is received from an organization or individual entrepreneur at the place of primary employment is exempt from tax, within the limit of 3910 rubles per calendar year. This category may include some gifts, material assistance, and other similar payments. It is essential to understand that 3910 rubles is the overall annual limit, not an additional amount exclusively for pension benefits.

This implies that a larger amount of severance pay for a pensioner may also be exempt from tax.

To be or not to be taxed?

Let's analyze another situation. The employee's average monthly salary was 2.5 thousand rubles, and they received a severance pay of 10 thousand rubles. Tax legislation exempts three average monthly salaries from income tax, i.e., 7.5 thousand rubles. This means that tax will have to be paid on the remaining 2.5 thousand rubles. However, if the employee has not used up the annual limit of 3910 rubles for other payments from the employer in 2026, the remaining amount will cover this. As a result, all 10 thousand rubles may be exempt from income tax.

But if the severance pay exceeds the established threshold of three average monthly salaries plus the exemption of 3910 rubles, then income tax of 13% will still be withheld from the part of the benefit that exceeds the limit.

For example, with an average salary of 2.5 thousand rubles and a severance pay of 16 thousand rubles, tax may be withheld from the employee.

Let's calculate: 16 thousand minus 7.5 thousand equals 8.5 thousand rubles. If the employee has not used the exemption of 3910 rubles, we subtract this amount from 8.5 thousand rubles – the remaining 4590 rubles will be subject to tax at a rate of 13%. This amount will be 596 rubles and 70 kopecks.

Thus, the new norm gives employers and employees an additional tool, but only on the condition that the corresponding payment is stipulated in the collective agreement.