Being ‘let go’ will become a reality for thousands in the coming year. Here’s what to do if it happens to you.
SA has seen many large-scale retrenchments in the past year, and more can be expected.
Here’s what you should do:
1. Take stock
2. Have the awkward conversations
3. Sign up to claim from UIF
4. Contact your creditors
5. Check your numbers
How are retrenchment payouts taxed?
Tsimane says the tax applicable to retrenchment packages is similar to that paid upon retirement. “You get the first R500 000 of your payout free of tax [assuming no previous withdrawals],” he says, adding that the balance will be taxed as detailed below.
Source: South African Revenue Service