Severance pay calculator for The Gambia

Section 104 of the Labour Act, 2023 sets severance pay when a contract is terminated or ends. Choose how the job ended to see the minimum amount.

For a terminated contract, death in service, insolvency or a transfer of the business, it is 2 months of basic pay for each year served. On a fixed-term contract it is a gratuity of at least 25% of the basic pay earned.

How it's calculated

Terminated contract, death, insolvency or transfer: monthly basic pay × 2 months × completed years served.
Fixed-term contract that ends or is terminated: basic pay earned during the contract × 25%.
Only basic pay counts. Allowances, overtime and bonuses are left out.

An example

A worker on D10,000 basic pay whose contract is terminated after five years receives at least D100,000 of severance pay.

Frequently asked questions

Who does not get severance pay?

Casual employees and employees serving a period of probation.

What happens if the worker dies before being paid?

The employer pays the severance to the worker's estate under the Intestate Estates Act.

Is there more to pay when a job ends?

Yes. The employer also pays wages earned, deferred pay, accrued annual leave and any compensation for sickness or accident, plus notice or pay in lieu of notice.