Final pay: four components, and one question that comes first

When employment ends in Botswana, several payments may be due — but one question determines the largest of them.

The first question

Are you registered with the social insurance system, or receiving a pension or gratuity?

If yes, severance does not arise. If no, severance is calculated on the day-per-month formula.

Establish this before examining anything else, because it changes the whole shape of the settlement.

What should be paid

• Final salary for all work performed to the termination date
• Accrued leave — payment for unused annual leave
• Severance pay, where applicable under the circumstances
• Outstanding benefits — bonuses, commissions or allowances due
• Notice pay, where notice was not given and worked

Deductions

Employers may only deduct amounts authorised by law or by written agreement, such as loan repayments or uniforms owed.

If a deduction appears that you did not agree to in writing, question it.

Timing

Final payments must be settled promptly upon termination.

The severance checklist

If severance does apply:

1. Is the calculation in completed months, not rounded years?
2. Was the two-day rate applied to months beyond 60?
3. Is it based on basic pay as the contract defines it?
4. Does your contract provide more generous terms than the statutory formula?

Get it itemised

Ask for the settlement calculation in writing, broken down by component. Clear documentation matters for both sides and lets you check each figure.

If something is wrong

Raise it in writing before accepting. The Ministry of Employment, Labour Productivity and Skills Development handles employment matters.

Keep your records

Contract, payslips showing basic pay, evidence of your start date, and the termination letter. Severance turns on months of service and basic pay — those documents prove both.