Wolverhampton City Council is offering staff an average of one-and-a-half times their weekly salary up to a maximum of 26 weeks’ pay if they choose to go.
But they have to volunteer by the Monday deadline in order to get the best terms.
Bosses have warned workers that if they have to make compulsory redundancies the packages will not be as generous. The council has announced plans to scrap 1,000 posts over the next 18 months.
It has been forced to make £89 million of savings over five years following government funding cuts and four years’ worth of council tax freezes.
The announcement was made just over two weeks ago, but around 400 people have called a helpline asking about the option to go over the course of two days.
Staff are able to enter details about themselves and length of service on an internal website which gives them a calculation of what they could expect to receive.
Councillor Paul Sweet, who is overseeing the staffing cuts for the controlling Labour party, said: “We want as many volunteers as possible to come forward in order to minimise the number of compulsory redundancies. Depending on age and length of service, the majority of employees who opt to go voluntarily will receive a more beneficial redundancy payment.
“A multiplier of 1.5 times actual weekly pay is used to calculate the redundancy payment, with the payment being capped at a maximum of 26 weeks’ pay.
“There is no multiplier used in calculating a compulsory redundancy payment. There may be a few circumstances where older, longer-serving employees might receive a higher payment if made compulsorily redundant.
“We know staff are giving the scheme serious consideration.
“The helpdesk set up to advise staff on the council’s redundancy scheme dealt with more than 400 enquiries last Thursday and Friday alone.
“Already, scores of staff have applied to go voluntarily and we expect many more applications by the deadline.”
The council is facing the prospect of a strike by members of the Unison trade union.
It is set to ballot its members after it accused the council of ‘haemorrhaging money by making ineffective spending decisions’.
It has been especially critical of plans to spend up to £15 million on a refurbishment of the Civic Centre.
However the council has rigorously defended the proposal, saying it involves vital maintenance work needed to bring the 1970s building up to date, as well as allowing it to bring staff over from other offices in the city.
The council owns or rents 13 buildings for office-based staff and wants to cut this to two so it can sell off land or save money on rent.