Notice Pay Calculator
Calculate cash payouts in lieu of notice periods according to your contract guidelines.
How Pay in Lieu of Notice Is Calculated
Pay in lieu of notice is what an employer owes when ending a contract immediately instead of letting the employee work out their contractual notice period. It's calculated as your basic monthly salary multiplied by the length of the notice period in months, as set out in your employment contract. This payout is taxed as ordinary income in your final payslip, alongside your usual PAYE, NSSF, SHIF and Housing Levy deductions.
Is notice pay taxed the same as normal salary?
Yes. Pay in lieu of notice is treated as ordinary employment income and is subject to the same PAYE, NSSF, SHIF and Housing Levy deductions as your regular salary.
This calculator gives an estimate for guidance only and is not tax or legal advice — confirm final figures with your HR/legal team or a licensed employment law advisor.