Bengaluru CEO criticises tax on severance pay after Visa layoffs: ‘No unemployment benefits or income support’
A Bengaluru-based entrepreneur has criticised the practice of taxing severance payout that laid-off employees receive. Sanket Sheth, founder and CEO of business consulting firm Kreative Kode, took to LinkedIn to share his views on severance pay and taxation after Visa announced layoffs.An entrepreneur has criticised the practice of taxing a laid-off employee’s severance pay. (Representational image)“Hearing of Visa layoffs, my anger is less on the company but more on a completely non-related entity. It’s the government,” wrote Sheth.On taxing severance paySeverance pay is money that an employer gives an employee when their job ends, typically due to reasons such as layoffs. The money is meant to help employees financially while they look for a new job.The Bengaluru-based founder of Kreative Kode pointed out that salaried employees honestly pay tax every month and get no social security. Instead, even their severance pay is taxed the government.(Also read:
