South Africa severance pay calculator
Calculate statutory severance pay under the South African BCEA (1 week per year of service), notice pay, leave payout and R550,000 tax exemption.
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About this tool
Calculate statutory severance pay entitlements under Section 41 of the South African Basic Conditions of Employment Act (BCEA) following operational retrenchment. Computes 1 week's pay per completed year of service, untaken leave payout, notice pay, and verifies the SARS R550,000 lifetime tax-free exemption threshold.
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 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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