Good day Pervash. Yes, generally severance pay is calculated on week for every completed year in service. I would take the annual salary and divide by 52 weeks (which comes to 4,333). Yes, you need to apply for a tax directive, this is done via eFiling and you will select IRP3(a) Form. You can read more here on the SARS website.

Thank you for the assistance. Much appreciated

Pleasure!

How to calculate several pay