How is redundancy pay calculated in Zambia?

Redundancy benefits for those that are protected by the statutory instruments under the minimum wages are calculated at two months’ pay for each year served and at least one month’s pay for those whose notice was not given.

How is redundancy package calculated in Zambia?

Severance Pay

  1. Termination of employment contract of a fixed duration: at least 25% of the employee’s basic pay earned during the contract period;
  2. Termination of employment due to redundancy: 2 months’ basic pay for each completed year of service;


How is redundancy pay calculated manually?

Calculating employee redundancy

You need to multiply the employee’s weekly wage by the number of full years’ continuous employment with the company, according to their age when they’re made redundant.

Is redundancy pay taxable in Zambia?

Salary and Leave Pay are taxed under P.A.Y.E in the month in which payment is made. Repatriation Pay, Severance Pay, Accrued Service Bonuses, and compensation for loss of office are added together and taxed as follows: Note: The first K35 million is exempt from tax and the balance is taxed at 10%.

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How much do you get paid out for redundancy?

How much is paid?

Length of service​ Redundancy payment
Less than 2 years, but more than 1 4 weeks
Less than 3 years, but more than 2 6 weeks
Less than 4 years, but more than 3 7 weeks
Less than 5 years, but more than 4 8 weeks

Who is entitled to gratuity in Zambia?

Vulnerable workers who earn very little compared to other workers in Zambia should have the compulsory gratuity benefit of 25% of the salary they earned during their employment if they have worked for 10 or more years.

What is the minimum wage for domestic workers in Zambia?

The statutory minimum wage for domestic workers in Zambia is K520 per month (US$53). A worker whose duty is beyond a three kilometre radius from the place of work is also entitled to be paid a monthly transport allowance of K102.

What is the minimum redundancy payment?

For each full year you’ve worked for your employer, you get: up to age 22 – half a week’s pay. age 22 to 40 – 1 week’s pay. age 41 and older – 1.5 weeks’ pay.

What is the notice period for redundancy?

The statutory redundancy notice periods are: at least one week’s notice if employed between one month and 2 years. one week’s notice for each year if employed between 2 and 12 years. 12 weeks’ notice if employed for 12 years or more.

What are you entitled to when you are made redundant?

If you are an employee with at least two years’ service in your job, you are entitled to a statutory redundancy payment. The law sets a minimum payment. This is normally paid by your employer, but the State will pay if your employer has gone bust. … one week’s pay for every year of service between 22 and 40; and.

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What are the highest paying jobs in Zambia?


  • Teaching jobs. …
  • Pharmacist. …
  • Human Resources Personnel. …
  • Sales managers. …
  • Veterinarian. …
  • Mechanical engineer. …
  • Public Relations Officers. …
  • Surgeon.

Is tax payable on gratuity?

The exemption for gratuity from tax is covered under Sec 10(10) of income tax Act 1961. Any Gratuity received during service is fully taxable.

Is gratuity payable on termination?

Gratuity to be paid on termination of employment only after 5 years of service. As per the Code on Social Security 2019, employees will become eligible for payment of gratuity only after their employment is terminated after completing five years of continuous service.

When should you receive redundancy pay?

This payment is a form of financial compensation for your loss of employment. You are entitled to statutory redundancy pay if: You are an employee (someone who works under an employment contract) Have been working for your current employer for two years or more.

What is the maximum weeks redundancy pay?

one week’s pay for each year of employment between the ages of 22 and 40; one and a half week’s pay for each year of employment over the age of 41; a maximum of 20 years’ employment can be taken into account; and. there is a statutory maximum limit to a week’s pay.

What is a reasonable redundancy package?

You have to have worked for your employer for two years to qualify for statutory redundancy pay. … 0.5 week’s pay for each full year worked when you’re under 22; 1 week’s pay for each full year worked when you’re between 22 and 41; 1.5 week’s pay for each full year worked when you’re 41 or older.

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