South African Airways (SAA) plans to lay off its close to 5,000 workforce after the government declined to provide more funds for rescue efforts.

The state-owned carrier has tabled severance packages to its staff, a move seen to be the final act in the airline's existence.

The proposal has already been put to trade unions though an agreement has not been reached, and more talks are scheduled for Monday.

The woe-plagued SAA entered a form of bankruptcy protection in December, and has since had to suspend all its passenger flights due to the COVID-19 pandemic that has left the world's aviation industry in jeopardy.

Even before the pandemic however, SAA was already reducing routes and considering job cuts.

In a tumultuous decade for the carrier, at least nine chief executive officers were brought in to try and change its course, all with little success.

The South African government earlier this week told administrators that it wouldn't provide more funds, lending guarantees or allow foreign financing of a business rescue plan.

The SAA proposal to its workforce entails that employee contracts would be terminated by mutual agreement on April 30. They would be entitled to one week's pay for every year of service, one month's pay in lieu of notice pay and pay for outstanding annual leave.

The proposal said it seemed "unlikely that the company will be successfully rescued as a result of the business rescue process."

"In order to make payment of the severance packages ... the company is required to sell and dispose of its assets," it added.