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Terminal Benefits Calculator
(Severance Pay Calculator)
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| 15 Days Salary | K0.00 |
| Years of Service | 0 |
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Understanding Terminal Benefits in Zambia (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