Severance Pay Calculator South Africa (2026)
Enter your completed years of continuous service and your pay to estimate the statutory minimum severance owed on retrenchment under s41 of the Basic Conditions of Employment Act 75 of 1997. Free, instant, and calculated entirely in your browser; no email or phone number required.
Remuneration for this calculation follows BCEA s35(5): it includes the cash value of payments in kind, but excludes gratuities, allowances that enable you to work (like a tool or travel allowance), and discretionary payments not tied to hours or performance.
Statutory Minimum Severance
R20 769,25
5 weeks of remuneration (1 week per completed year)
How Severance Pay Is Calculated
The South African statutory severance formula is short: the BCEA requires severance pay equal to at least one week's remuneration for each completed year of continuous service with the employer (s41(2)). There is no weekly-pay cap, and the Act counts completed years only; it does not prescribe a pro-rata share for part of a year.
- "Remuneration" follows s35(5): it includes the cash value of payments in kind, but excludes gratuities, allowances that enable you to work, and discretionary payments not linked to hours or performance
- A monthly wage converts to a weekly wage under s35(3): monthly pay is four and one-third times weekly pay
- "At least" makes this a floor: a contract, collective agreement, or the retrenchment consultation can improve on it, never undercut it
Severance applies to dismissals for operational requirements(retrenchment) and, since 2002, to contracts terminated under s38 of the Insolvency Act. It is paid on top of notice pay (or payment in lieu) and accrued leave. See the full retrenchment guide for the consultation process an employer must follow before any retrenchment takes effect.
Who Is Eligible
Severance under s41 is owed to an employee dismissed for the employer's operational requirements, or whose contract ends through the employer's insolvency. An employee who unreasonably refuses an offer of alternative employment with that employer or another employer forfeits the statutory entitlement (s41(4)). Disputes about severance pay go to the CCMA or a bargaining council for conciliation and, if unresolved, arbitration. This tool only computes the amount the statutory formula produces from the inputs you give it; it does not decide any dispute.
Frequently Asked Questions
How much is severance pay in South Africa?
The statutory minimum is at least one week of remuneration for each completed year of continuous service with the employer (BCEA s41(2)). Ten completed years at R4,000 per week produces at least R40,000. Contracts and collective agreements can provide more.
Do part years count toward severance?
The Act counts completed years of continuous service and does not prescribe pro-rata severance for part of a year. Nine years and eleven months therefore produces nine weeks under the statutory floor, though an employer may agree to more.
Is severance pay the same as notice pay?
No. Notice pay (or payment in lieu of notice) under s37 and s38, accrued leave under s40, and severance under s41 are separate amounts, and a retrenched employee is owed all of them.
Can I lose my right to severance pay?
Yes. An employee who unreasonably refuses an offer of alternative employment with the same or another employer is not entitled to statutory severance (s41(4)). Whether a refusal was unreasonable is decided on the facts, ultimately by the CCMA or the courts.
What pay counts as remuneration for the calculation?
Section 35(5) includes the cash value of payments in kind, and excludes gratuities, allowances paid to enable you to work, and discretionary payments not related to hours worked or performance. A monthly wage is converted at four and one-third weeks per month.
Does this tool store or send my information anywhere?
No. All of the maths runs in your browser. Nothing you type into this calculator is saved, transmitted, or used to contact you.
This calculator estimates the statutory minimum under s41 of the Basic Conditions of Employment Act 75 of 1997. It is general legal information, not legal advice, and RecordingLaw.com is not affiliated with any South African government body. Your employer, a bargaining council, the CCMA, or the Labour Court makes the binding calculation; consult an attorney, or Legal Aid South Africa (0800 110 110), about your own situation.
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