How much severance pay is required in South Africa?

Section 41 of the BCEA requires at least one week's remuneration for each completed year of continuous service when an employee is dismissed for operational requirements (retrenchment).

Is notice pay separate from severance?

Yes. The employee is still entitled to the notice period in section 37, or payment in lieu of notice, plus any accrued annual leave that was not taken.

Can an employee lose severance pay?

An employee who unreasonably refuses an offer of alternative employment with the same or another employer may forfeit severance pay.

Severance & retrenchment pay calculator

Minimum amounts under the BCEA: 1 week's pay per completed year of service, plus notice pay and unused leave.

Monthly remuneration (R)

Years of service

Unused annual leave days

Working days per week

Part ways properly

A clear written employment contract sets out notice, leave and termination terms up front — and protects both sides if things change.

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Questions people ask

How much severance pay is required in South Africa?: Section 41 of the BCEA requires at least one week's remuneration for each completed year of continuous service when an employee is dismissed for operational requirements (retrenchment).
Is notice pay separate from severance?: Yes. The employee is still entitled to the notice period in section 37, or payment in lieu of notice, plus any accrued annual leave that was not taken.
Can an employee lose severance pay?: An employee who unreasonably refuses an offer of alternative employment with the same or another employer may forfeit severance pay.

General guidance, not legal advice.

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