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Terminal Benefits Calculator
Calculate everything owed when employment ends - notice pay, leave pay, gratuity, and redundancy.
Enter employment details
Set your basic pay, contract duration, and reason for leaving to see your terminal benefits.
Terminal Benefits - Key Facts
Entitlements by Reason for Leaving
| Reason | Notice | Leave | Gratuity | Severance |
|---|---|---|---|---|
| End of contract | Yes | Yes | Yes | No |
| Resignation | Yes | Yes | Yes | No |
| Redundancy | Yes | Yes | Yes | Yes |
| Summary dismissal | No | No | No | No |
| Death in service | No | Yes | Yes | 2mo/yr |
Key Rules - Employment Code Act
Frequently Asked Questions
What are terminal benefits in Zambia?
Terminal benefits are all payments owed to an employee when their employment ends. This includes accrued leave pay, notice pay (if notice was not served), gratuity (typically for contracts over 12 months, though shorter contracts may include it), and redundancy pay where applicable.
How is notice pay calculated?
Notice pay equals your daily rate multiplied by the number of unserved notice days. Daily rate = monthly basic pay / 26 working days. Under Section 53, the minimum notice is 24 hours for contracts up to 1 month, 14 days for 1-3 month contracts, and 30 days for contracts over 3 months.
Do I get terminal benefits if I resign?
Yes, but with conditions. On resignation you are entitled to gratuity (if your contract includes it) and payment for accrued leave days. You must serve your notice period or forfeit notice pay. Summary dismissal forfeits most entitlements.
What happens with terminal benefits on summary dismissal?
On summary dismissal, the employee is only entitled to wages up to the date of dismissal. Leave pay, notice pay, and gratuity are generally forfeited. However, the employer must give the employee an opportunity to be heard before dismissal.
What happens to terminal benefits if an employee dies in service?
Under Section 54(1)(e), the employer must pay a severance of 2 months' basic pay for each year served. The employee's estate also receives accrued leave pay and pro-rata gratuity. Payment goes to the estate under the Intestate Succession Act or the Wills and Testate Estates Act.
What is the minimum redundancy pay in Zambia?
Under Section 55(3)(a), the minimum redundancy payment is 2 months' basic pay for every year served, plus any other accrued benefits. The employer must pay this by the last day of duty. If they cannot pay, the employee continues to receive full wages until the package is paid.
When must terminal benefits be paid after leaving?
Under Section 66(4), the employer must pay all wages, overtime, and allowances on the date of termination. Redundancy pay must be paid by the last day of duty (Section 55(3)(b)). Delays mean the employer continues paying full wages until the package is settled.
Can my employer offer more than the statutory minimum?
Yes. Section 127 states that where a contract, collective agreement, or other law provides conditions more favourable to the employee, those more favourable terms prevail. The Act sets minimum floors, not caps - employers can and often do offer better terms.
How are terminal benefits calculated? Show me an example.
Example: K10,000 basic pay, 3 years service, end of contract, 30 days notice unserved, 20 leave days taken, 25% gratuity. Daily rate = K10,000/26 = K384.62. Notice pay = K384.62 x 30 = K11,538.46. Accrued leave = 36 x 2 = 72 days, outstanding = 72 - 20 = 52 days. Leave pay = K384.62 x 52 = K20,000. Gratuity = K10,000 x 36 x 25% = K90,000. Total = K121,538.46.
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Learn
How to Calculate Terminal Benefits in Zambia (2026)
How to calculate terminal benefits in Zambia - notice pay, accrued leave, gratuity, redundancy pay, and tax deductions under the Employment Code.
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Sources
Governs gratuity (s.73), notice (s.53), leave (s.36), and redundancy (s.55).
Section 21(1) - gratuity taxation. Section 21(5) - first K2,000,000 of compensation for loss of office is exempt.
Governs distribution of death in service benefits to the employee's estate.
Zamcalc results are estimates only. Figures are based on rates published by official sources. Verify with the relevant authority or a licensed professional before taking any action. Zamcalc is not liable for decisions based on these figures.