Severance & Redundancy Pay Calculator

Calculate your legal redundancy severance package (15 days per year of service) and estimate KRA tax.

Calculation Inputs

Calculating...

Basic Monthly Salary (KES) *required

Hire Date *required

Exit / Redundancy Date *required

Exit Reason

Estimated Gross Severance

KES 0.00

Complete the inputs on the left

Day Rate (Basic / 26) KES 0.00

Completed Years of Service 0 Years

Spread Calculations (Max 5 Years)	Value (KES)
Severance Tax Slice per Year	0.00
Estimated Annual Marginal PAYE	0.00
Total Estimated PAYE on Severance	0.00
Estimated Net Severance Payout	0.00

How Severance Pay Is Calculated Under Kenya's Employment Act

Under section 40(1)(g) of the Employment Act, statutory severance pay is owed only when an employee is declared redundant — not for resignation or dismissal. The formula is 15 days' pay for every completed year of service, where the day rate is your basic monthly salary divided by 26 working days. For tax purposes, the payout can be spread over the last 5 years of service (or fewer, if you've worked less than that) to estimate the marginal PAYE impact.

Do I get severance pay if I resign?

No. Statutory severance under section 40 of the Employment Act only applies to redundancy exits. Resignations and dismissals for cause do not attract severance pay.

This calculator gives an estimate for guidance only and is not tax or legal advice — confirm final figures with KRA or a licensed employment law advisor.

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