The voluntary retirement program includes a health bridge to Medicare, influencing Social Security claiming decisions for affected employees.
Microsoft has offered approximately 8,750 U.S. employees, about 7% of its domestic workforce, a voluntary retirement package including up to 39 weeks of base pay. This marks the company’s first such program in over 50 years, with employees given 30 days to decide on the offer.
The severance calculation provides one week of pay for every six months of service, capped at 39 weeks. For example, an employee with 12 years of service would receive roughly 24 weeks of pay. The package also includes a health bridge covering ages 60 to 65, reducing pressure to claim Social Security early.
Delaying Social Security claims until age 70 can increase monthly benefits by over $1,500 compared to claiming at 62, potentially outweighing the immediate cash severance. The program aims to balance short-term financial support with long-term income optimization for retiring workers.