SAA staff severance packages -how much money they will Get

Filed in Latest News by on July 10, 2020 0 Comments

SAA staff severance packages -how much money they will Get

Almost all of South African Airways’ (SAA) labour unions have agreed to the terms of a company-wide severance package deal, which will ensure that thousands of workers get a fair financial payout once the airline goes out of business. The Department of Public Enterprises confirmed that over 2 700 workers will be compensated.


The only stumbling block remains with the pilots of SAA. They are seeking advice from Business Rescue Practitioners before agreeing to take the payouts. Elsewhere, some staff members will be kept on SAA’s new training scheme, which allows workers an immediate route back to employment when a new airline is created.

“We are delighted that unions and staff have agreed to accept the voluntary severance packages. This will be supported by a social plan and skills development scheme for employees who will be retrenched. We appreciate this level of commitment to accepting a fair and reasonable deal during the COVID-19 crisis”.

“Meanwhile, a further 1 000 employees will be placed on the Training Layoff Scheme for 12 months. They won’t receive a salary, but SAA will continue paying into their UIF and pension funds. These employees will receive ‘special preference’ when a new state airline emerges from the business rescue process.”

Department of Public Enterprises


The terms and conditions of the severance packages were laid out on Wednesday morning:

  • Each worker will be paid one week’s salary, per year they have worked at SAA (eg; an employee of five years gets five weeks wages paid out).
  • Workers will also be paid a full month’s wage, as part of them “serving their notice”.
  • All remaining leave dates will be paid out.
  • Employees are set to receive a pro-rata 13th cheque.
  • The minimum payout that a staff member can expect to receive is R200 000. Those who are paid less will be topped-up.


Furthermore, the ministry also revealed how much money each employee can expect to receive in their severance package. Pilots are set for a windfall of nearly R2 million each, but they are still hesitant to accept this offer. SAA management and those who work in flight simulation are also in line for a generous payout:

Position Average severance package for each worker
Pilots R 1 960 068
Management and specialists R477 192
Simulators R476 976
Back office workers R379 245
Contractors R376 538
Cabin Crew R352 588
Cargo staff R351 674
Ground operations R351 209
Total cost to payout all employees R2.27 billion
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