What is the correct code for tax return completion for a severance package received if retrenched?

By Marc Sevitz · Updated

Should a package offered by an employer to an employee that gets retrenched (un-voluntarily) be recorded in the IRP5 under code 3901 or a different code?
TaxTim Marc

TaxTim Marc said:
3 July 2013 at 21:31

Yes the code to be used is 3901:

"Gratuities paid by an employer in respect of retirement, retrenchment or death"
Salary / IRP5
Retirement