If you’ve ever heard the term "gratuity" and wondered if it’s just a fancy word for a tip, you’re not alone. In South Africa, gratuity is a statutory benefit that employers must pay to employees when they leave a job after a certain period. It’s meant to act as a safety net, giving workers some cash to fall back on while they look for their next role.
Most people think gratuity only applies to senior staff, but the law treats all permanent employees the same once they’ve served at least one year. Interns on short contracts usually don’t qualify, but if an internship turns into a full‑time position, the gratuity clock starts ticking. That’s why it’s useful for anyone starting out in their career to understand how the system works.
The calculation is straightforward: you take one month's salary for every year of service, then multiply by a factor based on your length of employment. If you’ve worked between 1 and 5 years, you get one month’s pay per year. Between 6 and 10 years, it jumps to 1.5 months per year, and beyond that it goes up to two months per year. The salary used is the basic wage, not bonuses or overtime.
Let’s say you earned R15 000 a month and stayed with the company for four years. Your gratuity would be 4 × R15 000 = R60 000. If you reach eight years, you’d get 8 × (1.5 × R15 000) = R180 000. The formula ensures that longer service means a bigger payout.
You’re entitled to collect gratuity when your contract ends, you resign, or you are retrenched. The employer must pay it within 30 days of the termination date. If they don’t, you can take legal action through the Department of Labour or a labor court.
To claim, request a statement of earnings from HR showing your total months worked and salary details. Double‑check that the amount matches the calculation rules above. Keep all correspondence in writing; it makes any dispute easier to resolve.
For interns who transition into permanent roles, make sure you get an official contract that states when your gratuity starts. This can prevent confusion later if you decide to leave after a few years.
Understanding gratuity helps you plan financially. Knowing the exact amount you’ll receive on exit lets you budget for job hunting or further training. It also gives you leverage in salary negotiations—if an offer doesn’t include a clear gratuity policy, you can ask for clarification before signing.
In short, gratuity is more than a legal requirement; it’s a tool that protects workers’ futures. Whether you’re an intern eyeing a full‑time spot or a seasoned professional changing jobs, keep the calculation method and claim process in mind. It could make a big difference to your next paycheck and give you peace of mind as you move forward in your career.
Former Public Protector Busisiwe Mkhwebane has taken her successor, Kholeka Gcaleka, to court to claim a R10 million gratuity. Despite her impeachment, her legal team, led by advocate Dali Mpofu, insists she is entitled to the payment. The case examines the legality of Mkhwebane's claim, sparking a significant legal conflict over her post-office benefits.