Severance: one day per month, then two after five years

Botswana calculates severance differently from most countries — by month of service rather than by year, and the rate doubles after five years.

The formula

• First 60 months (five years): one day's basic pay for each completed month of service
• Beyond 60 months: two days' basic pay for each completed month

Expressed annually, that is 12 days per year for the first five years, then 24 days per year after that.

A worked example

An employee with ten years — 120 months — of service is entitled to 180 days of basic wage:

• 60 days for the first 60 months
• 120 days for the next 60 months

The doubling after five years makes long service considerably more valuable.

The pension rule

Here is the point that decides most cases: 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.

So the first question in any severance discussion is not how long you worked, but whether you are on a pension or gratuity arrangement.

When it applies

Severance is generally payable on redundancy, retirement, or termination for reasons other than serious misconduct.

Dismissal for serious misconduct removes the entitlement.

Basic pay, not gross

The calculation uses basic pay. Allowances and variable payments do not form part of the base unless the contract provides otherwise.

What else is due at termination

• Final salary for work performed to the termination date
• Payment for accrued but unused annual leave
• Notice pay, where notice was not given and worked
• Any outstanding bonuses, commissions or allowances

Deductions

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

Before you accept

Establish whether you are on pension or gratuity, confirm your start date in months, and check that the two-day rate was applied to service beyond 60 months.