When you are retrenched in South Africa, you are typically entitled to several types of payments:

1. Severance Pay: According to the Basic Conditions of Employment Act, you should receive at least one week’s remuneration for every full year of service¹.
2. Notice Pay: If you have been employed for more than a year, you are entitled to at least four weeks’ notice pay.
3. Leave Pay: Any accrued but unused leave must be paid out to you.
4. Pro-rata Bonuses: If your employment contract includes bonuses, you may be entitled to a pro-rata portion of these.
5. Gratuities: These are negotiable payments that go beyond your contractual obligations.

Regarding taxation, the first R550,000 of your severance benefit is not subject to tax. However, leave pay, notice pay, and pro-rata bonuses are taxed at normal rates.