How to Calculate Severance Pay in Botswana

Severance Pay is calculated by rounding up the employee’s years of completed, continuous service to the next higher year. If the layoff occurs on the employee’s service anniversary date, the calculator may overstate the employee’s severance pay.

Professional staff, like managers and executives, receive severance pay after 60 consecutive months of employment. This is calculated as a day of pay for each month served up to 60 months, and then two days for every further month.

How is severance payout calculated?

How is severance pay calculated? The one week’s severance pay per completed year of continuous service is the minimum amount the employer must pay by law. This is based on the gross (before tax) remuneration of the employee.

How is severance normally calculated?

The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.

How does severance pay work in Botswana?

Severance is paid at the rate of 1 day per month of service (12 days per year) up to 5 years of employment and 2 days for each month worked (24 days per year) beyond 5 years.

Is severance pay compulsory in Botswana?

What is compulsory is the payment of severance pay or gratuity at the end of the contract period, which is not normally less than the severance pay otherwise payable.

Is severance pay calculated on basic salary?

Severance pay – this should be at least one week’s remuneration per completed year of service. Remuneration is calculated including basic salary and payments in kind. Outstanding leave must be paid out in full.

How much is a domestic worker’s severance pay?

One week, if employed for six months or less • Four weeks if employed for more than six months. The notice must be explained orally by or on behalf of the employer to a domestic worker if he/she is not able to understand it.