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Terminal Benefits Calculator Severance Pay Calculator
Calculate severance pay and termination benefits based on the Employment Act. Accurate calculations for 15 days salary per year of service.
Employment Details
Results Summary
Terminal Benefits Amount
K0
Total severance pay based on years of service
Monthly Equivalent
K0
Monthly salary equivalent of your benefits
Calculation Details
| 15 Days Salary | K0.00 |
| Years of Service | 0 |
| Terminal Benefits | K0.00 |
Understanding Terminal Benefits (2025)
- According to the Employment Act, section 40 (1) (g), severance pay is calculated at not less than 15 days pay for each completed year of service.
- Terminal benefits are lump sum payments made to employees on termination of employment on medical grounds.
- Permanent employees are entitled to severance pay in the form of gratuity at 25% of basic salary earned at end of employment.
- For redundancy, employees are entitled to a minimum of two months' pay for every year served.
- With effect from 1st April 2001, lump sum payments made on termination of employment on medical grounds are exempt from tax.
- Benefits only accrue from 9th May 2020, which is one year from when the Employment Code Act came into effect.
Types of Terminal Benefits
- Severance Pay: Minimum 15 days pay per year of service
- Gratuity: 25% of basic salary for permanent employees
- Redundancy: Minimum 2 months pay per year served
- Leave Pay: Payment for unused annual leave
- Medical Termination: Tax-exempt lump sum payment