Terminal dues calculator

What the Employment Act provides when a job ends in Kenya — notice, severance and leave not taken. Severance is fixed at fifteen days’ pay a year, and the Act does not define a day’s pay — so this gives the figure on each of the two bases in use, and the difference between them.

Built from the Employment Act (Cap. 226) · checked against the Act on 26 October 2026

Monthly pay

Completed years of serviceWhole years only — the Act says “each completed year”, so 4 years and 11 months counts as 4.Days of leave you are owed · optional

Your payslip or exit letter will say. Leave it blank if you are owed none.The job ended by redundancySeverance under s. 40 is for redundancy only, not for resignation or dismissal for causeYou were given, or worked, your notice periodTick this and pay in lieu of notice drops out of the total

Enter a monthly pay and your completed years, and the figures appear here.

The provisions this rests on

Employment Act (Cap. 226), s. 35(1)(c)

where the contract is to pay wages or salary periodically at intervals of or exceeding one month, a contract terminable by either party at the end of the period of twenty-eight days next following the giving of notice in writing.

Employment Act (Cap. 226), s. 40(1)(f)

the employer has paid an employee declared redundant not less than one month’s notice or one month’s wages in lieu of notice.

Employment Act (Cap. 226), s. 40(1)(g)

the employer has paid to an employee declared redundant severance pay at the rate of not less than fifteen days pay for each completed year of service.

Employment Act (Cap. 226), s. 28(1)(b)

where employment is terminated after the completion of two or more consecutive months of service during any twelve months’ leave-earning period, to not less than one and three-quarter days of leave with full pay, in respect of each completed month of service in that period, to be taken consecutively.

What this figure is not

It is the floor, not the ceiling. The Act says “not less than”. A contract, a collective agreement or a company policy can give more, and where it does, the better term applies.
It is before deductions. PAYE, NSSF, SHIF and any housing levy come off these figures, and a loan owed to the employer may be set off against them.
It says nothing about whether the dismissal was fair. Compensation for unfair termination is separate, discretionary, and capped at twelve months’ pay. That is a claim, not an entitlement, and it is not in this total.
Service pay is a separate question. Section 35(5) gives it “for every year worked” where a monthly contract is ended on notice, but section 35(6) disapplies the whole section for anyone in NSSF, a registered pension or provident fund, or a gratuity scheme under a collective agreement — which covers most formal employment. The Act fixes no rate for it either: the terms “shall be fixed” elsewhere. So it is named here and not counted.

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