Eritrea Severance Pay & Termination Calculator
Calculate statutory severance pay (2 weeks/year for years 1-2, 1 month/year thereafter), unused leave encashment, and notice indemnity in Nakfa (ERN).
๐ผ Separation Parameters
Excludes discretionary bonuses; includes regular base pay.
Under 1 full year yields no statutory severance unless agreed.
Encashed at daily rate = Monthly Basic ÷ 26 working days.
Labour Proclamation 118/2001 Statutory Ledger Article 35 & 28
Statutory Notice Periods (Article 28 Reference)
Eritrea Labour Proclamation 118/2001 Terminal Benefits Matrix
Statutory entitlements across separation grounds codified under Eritrean national labour jurisprudence.
| Termination Ground | Severance Entitlement | Notice Obligation | Leave Encashment | Social Security Pension |
|---|---|---|---|---|
| Redundancy / Retrenchment | 100% Statutory Article 35 | 1 - 3 Months Notice | Full (100%) | Vested / Refundable |
| Enterprise Bankruptcy / Closure | Priority Creditor Claim | Statutory Notice Due | Full (100%) | Vested / Refundable |
| Certified Medical Invalidation | 100% Statutory Article 35 | Exempt / Waived | Full (100%) | Disability Pension Annuity |
| Voluntary Resignation | 0% (Ineligible) | Employee Serves Notice | Full (100%) | Preserved in Fund |
| Summary Misconduct Dismissal | Forfeited (0%) | No Notice Required | Full (100%) | Employee Share Preserved |
Frequently Asked Questions: Eritrea Severance & Labour Law
How is statutory severance pay calculated under Eritrean labour law?
Under Article 35 of the Transitional Labour Proclamation No. 118/2001, an employee with at least one year of continuous service who is lawfully separated is entitled to: (a) two weeks' wages for each of the first two years of service, and (b) one month's wages for each subsequent year of continuous service, calculated on the basis of the employee's last drawn basic wage.
What termination grounds qualify an employee for severance pay in Eritrea?
Severance pay is mandatory in cases of redundancy / organizational restructuring, business closure or bankruptcy, constructive dismissal resulting from substantial employer breach of contract, retirement due to permanent disability or certified ill-health, and death in service (payable to statutory dependents).
Is there a statutory ceiling on severance pay in Eritrea?
Yes. Article 35 stipulates that the aggregate statutory severance pay shall not exceed 12 months' wages of the employee, unless a more favorable collective agreement, company handbook, or individual employment contract establishes a higher maximum.
How is accrued unused annual leave encashed at end-of-service?
Accumulated unused leave days must be settled in cash at separation. The daily leave wage is computed using the statutory 26-day working divisor: (Last Monthly Basic Wage รท 26) multiplied by the number of accrued unused leave days.
Does an employee who resigns voluntarily receive severance pay?
Under ordinary voluntary resignation without employer breach or health grounds, statutory severance pay is generally not mandated under Proclamation 118/2001, although the employee remains entitled to 100% of accrued unused annual leave pay and accumulated pension fund entitlements.
Engr. Muhammad Shahzad Lead Systems Engineer
Principal Hardware & Web Systems Engineer • appsforpc.net
Standardized strictly in compliance with Article 35 of the Transitional Labour Proclamation No. 118/2001 of the State of Eritrea, Ministry of Labour and Human Welfare directives, and statutory 12-month severance ceiling benchmarks. All computations run in-browser with zero telemetry.
๐ State of Eritrea Inland Revenue Department (IRD) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (ERN) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 Nakfa |