How To Calculate Service Pay In Kenya
Severance pay in Kenya is the compensation or benefits issued to an employee by an employer after employment is over. There are several severance packages available. These are, for example, health insurance, life insurance, disability insurance, and outplacement assistance to help an employee get another job position.
In this article Keweb. co tries to answer the question by publishing the ways one can calculate service pay in Kenya
Below are the most helpful ways to calculate service pay in Kenya
Severance pay in Kenya is equivalent to 15 days of basic wages for each completed year of employment. Calculating the severance pay is dividing the employee’s monthly pay by 30 days to get the pay per day. Similarly, multiplying the pay per day by 15 days and finally by the total number of years in service.
If, on the other hand, the contract of employment provided a higher severance pay than the one under the Act. The employer must pay a higher amount. If the contract provided a lower pay, then the employer pays the one stipulated under the Act.
Final Thoughts
To sum up, severance pay in Kenya is an obligation that every employee must honor if they declare a redundancy. The pay is equivalent to your salary for 15 days for every year you worked in the company.
What is the law on severance pay in Kenya?
Before termination of an employee’s contract on account of redundancy, the employer is required to pay the affected employee his severance pay which is calculated at fifteen (15) days’ pay for each completed year of service, in addition to all other terminal dues.
How much is termination pay in Kenya?
An employer is allowed by Kenyan law to terminate an employee without notice. However, an employer is required to pay you a sum equal to the salary you would have received during the notice period.