1.NounA sum of money paid regularly to support the dependents of a member of the military while he or she is serving away from home.
2.NounMoney paid as compensation to someone whose employment has ended.
"The Mayor and Council will be entitled to a separation allowance upon completion of their term in office.; Workers who resign within thirty days after receiving a layoff notice are eligible for a separation allowance of two weeks’ salary for each year of service."