Gratuity for 24 months
K60,000.00
before tax · 25% of K240,000 basic pay earned
Each square is a month. Every month worked adds K2,500.00.
Employment Code Act 2019, section 73. Gratuity up to 25% of basic pay is treated as gratuity for tax.
25% gratuity · full contract{}
{}
{"rate":25}
Gratuity
Zambia · TapTip Tools
No. 9F7DB4
11 Oct 2026 09:07
Gratuity for 24 months
K60,000.00
- Basic pay
- K10,000.00 a month
- Months counted
- 24
- Basic pay earned
- K240,000.00
- Gratuity rate
- 25%
- Each month adds
- K2,500.00
- Before tax. Gratuity up to 25% of basic pay is treated as gratuity; anything above 25% is taxed as pay.
- Employment Code Act No. 3 of 2019, section 73.
Scan to open this calculation.
taptiptools.com/zambia/gratuity-calculator
Figures used
Straight from the source
Good to know
Questions people ask
How is gratuity calculated in Zambia?
Under section 73 of the Employment Code Act 2019, at the end of a long-term contract the employer pays gratuity of at least 25% of the basic pay you earned during the contract. On K10,000 basic a month for 24 months: K240,000 earned × 25% = K60,000.
What if my contract ends early?
If the contract is ended in line with the Employment Code, gratuity is prorated: 25% of the basic pay earned for the months you actually worked.
Is basic pay the same as my salary?
No. Basic pay is the standard rate of pay before allowances and bonuses. Gratuity is worked out on basic pay only, so housing, transport and other allowances are left out.
Is gratuity taxed?
The Income Tax Act treats gratuity of up to 25% of basic pay as gratuity, and anything above 25% as ordinary pay, taxed under PAYE. Ask your employer or ZRA how your gratuity is taxed; this calculator shows the amount before tax.
Who gets gratuity?
Employees on long-term contracts (fixed-term contracts of more than twelve months). Permanent and pensionable employees get pension benefits instead.