Seychelles severance pay calculator 2026

In the Employment Act the payment is called compensation, and it is due when a worker is made redundant or the contract ends for a reason that is not the worker's fault.

Workers who resign or retire after at least 5 years years of continuous service are paid on the same scale.

How it's calculated

Work out one day's wage, which is the monthly wage divided by the number of paid days in a month.
Multiply it by 0.83 days for each completed month of service.
On a fixed-term contract the rate is doubled (multiplier 2). The wage includes any responsibility allowance or duty allowance.

An example

A worker earning SCR 22,000 a month is made redundant after 60 completed months. One day's wage is SCR 1,000 using 22 paid days. Compensation is 1,000 × 5/6 × 60, which is SCR 50,000, the same as 50 days of wages.

Frequently asked questions

Who decides the amount?

The competent officer decides after the negotiation procedure. If the cause is partly or wholly attributable to the worker, the officer may award a lower rate or none.

Does service with a previous employer count?

It does when the new employer continues the service without a termination by the previous employer (section 47(3)).

Is interest due if the payment is late?

Yes. Section 63A says interest at the rate the Minister prescribes runs from the day the compensation becomes payable until it is paid.

Key terms

Redundancy: A job that ends because the employer closes, restructures, or brings in new technology.
Negotiation procedure: The step an employer must start with the competent officer before ending a contract.
Compensation: The payment for length of service set by section 47(2) of the Employment Act.