You get one or the other, not both

By Equipo Saplic Published on 11/08/2026 Updated on 11/08/2026

It is the single most consequential fact about your employment arrangement.

In this guide
  1. The rule
  2. Why the law works this way
  3. Which is better for you?
  4. The questions to ask
  5. If you were told you get severance
  6. If you were told you do not
  7. At the offer stage
  8. Where to raise it

Botswana law makes a clear choice between two forms of end-of-service provision, and understanding which applies to you determines what you receive.

The rule

Severance pay is payable only where the worker is not registered with the social insurance system.

Employees receiving a pension or gratuity, or both, are not eligible for severance payment.

Why the law works this way

The logic is the same one Malawi applies: the two mechanisms serve the same purpose — providing for the worker at the end of service — so the law avoids paying twice.

Which is better for you?

Generally a pension arrangement is the stronger long-term position, because it continues to provide after retirement rather than paying a one-off sum.

But the arrangements are not equivalent, and it is worth understanding what your specific scheme provides.

The questions to ask

  1. Am I registered with the social insurance system?
  2. Does my contract provide for a gratuity?
  3. If I am on a pension, what does it provide at retirement or termination?
  4. If I am not, has my severance been calculated on the correct month count?

If you were told you get severance

Check whether you are on pension. If you are, the entitlement does not arise, and a calculation that includes it is likely to be corrected later.

If you were told you do not

Check the reverse. If no pension or gratuity applies, severance should be calculated at one day per month for the first 60 months and two days per month thereafter.

At the offer stage

This is worth asking about before you accept a role, not when you leave it. The arrangement affects what your employment is worth over its whole span.

Where to raise it

The Ministry of Employment, Labour Productivity and Skills Development handles employment matters.

Frequently asked questions

Can I receive both pension and severance?
No. Severance is payable only where the worker is not registered with the social insurance system. Those receiving a pension or gratuity are not eligible.
Why does the law work this way?
Because both mechanisms serve the same purpose — providing for the worker at the end of service — so the law avoids paying twice.
Which arrangement is better?
Generally a pension is the stronger long-term position because it continues after retirement rather than paying a one-off sum, but schemes vary and it is worth understanding yours.
What should I establish first?
Whether you are registered with the social insurance system and whether your contract provides for a gratuity. That determines everything else.
When should I ask about this?
At offer stage, not when you leave. The arrangement affects what your employment is worth over its whole span.

Sources

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