💰 Net Terminal Pay (After Tax)
K 0.00
After PAYE deduction
Calculate what you're legally owed when your contract ends. Gratuity (25% minimum), leave pay, notice pay, and redundancy — all sourced from the Employment Code Act No. 3 of 2019. Includes PAYE tax on your terminal package.
Select your termination type, fill in your details, and click Calculate Terminal Benefits.
What you're owed depends on how your employment ends. Here is every type of terminal benefit, the legal basis, and its tax treatment.
Paid at the end of a fixed-term contract (long-term >12 months: Section 73; short-term ≤12 months: Section 54). Calculated on total basic pay earned during the contract period — not allowances.
Payment for unused annual leave at end of employment. Accrues at 2 days per month (24 days/year). Calculated on full pay (basic + allowances), not just basic. Must be paid on last working day.
If employer terminates without serving the required notice period, they must pay wages equivalent to the notice period. For contracts over 3 months: 30 days' pay. Treated as normal emoluments for tax.
Paid when an employee's position is eliminated. Calculated at 2 months' basic pay for each completed year of service. Enjoys a significant K2,000,000 tax exemption — the most tax-efficient terminal benefit.
Where an employee is medically discharged (unable to work due to illness or injury), they receive a lump sum of at least 3 months' basic pay for each completed year of service.
Paid to the estate of an employee who dies while in employment. Calculated at 2 months' basic pay for each completed year of service. Payable to the named next of kin or estate administrator.
A step-by-step walkthrough of the official formula under the Employment Code Act No. 3 of 2019, with a worked example.
The formula depends on whether you are on a short-term (<12 months), long-term (>12 months), or permanent contract, and whether you are completing the contract, being made redundant, medically discharged, or terminated. Use the tabs in the calculator to select the correct scenario.
Gratuity is calculated on basic salary only — not allowances.Total Basic = Monthly Basic Salary × Contract Months
The Employment Code Act sets the minimum at 25%. Your contract may specify a higher rate.Gratuity = Total Basic × Gratuity Rate%
Example: K240,000 × 25% = K60,000
Leave pay uses the Fifth Schedule formula on full pay (basic + allowances):Leave Pay = (Full Monthly Pay × Unused Days) ÷ 26
Example: (K12,000 × 8) ÷ 26 = K3,692.31
If your employer failed to give 30 days' notice (for contracts over 3 months), they owe you an additional 30 days' salary:Notice Pay = Monthly Basic ÷ 30 × 30 = 1 month basic
Terminal benefits (gratuity, leave pay, notice pay) are added to your final month's salary and taxed together using the standard 2026 ZRA PAYE bands. The combined total is what determines your tax bracket for that final month. This is why large gratuity payments often attract the top 37% rate.
Everything Zambian employees need to know about gratuity and terminal benefits.