BCEA severance pay calculator (South Africa)
Calculate retrenchment severance pay under BCEA rules in South Africa with notice pay, leave payout, and SARS R550,000 exemption. Free.
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About this tool
Calculate total retrenchment compensation under Section 41 of the Basic Conditions of Employment Act (BCEA) including statutory severance, notice pay, and leave encashment.
How to use it
- 1 Enter your gross monthly remuneration.
- 2 Enter completed full years of continuous service with your employer.
- 3 Input accrued untaken annual leave days and notice period weeks.
- 4 Review your gross retrenchment package and SARS lifetime tax-free threshold status.
Questions
What is the legal minimum severance pay in South Africa?
Section 41 of the BCEA requires employers to pay at least 1 week of remuneration for each completed year of continuous service.
What is the statutory minimum severance pay in South Africa?
Under Section 41 of the BCEA, an employer must pay an employee who is retrenched at least 1 week's remuneration for each completed year of continuous service.
Is severance pay taxable in South Africa?
Severance payments are subject to the SARS Retirement Fund and Severance Benefit Lump Sum tax table. The first R550,000 of a lifetime qualifying severance benefit is 100% tax-free.
Is my data uploaded?
No. This tool runs in your browser, so your text and files never reach our server.
Is this tool free?
Yes. It’s free to use with no sign-up and no limits for normal use.
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