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Leave Payout Formula:
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Leave payout calculation determines the monetary value of unused leave days when an employee leaves a company or takes paid time off. In South Africa, this is typically calculated based on the employee's monthly salary and the number of accrued leave days.
The calculator uses the standard South African leave payout formula:
Where:
Explanation: The formula calculates the daily rate by dividing the monthly salary by 21.67 (the average number of working days in a month), then multiplies this daily rate by the number of leave days.
Details: Accurate leave payout calculation ensures fair compensation for employees and compliance with South African labor laws. It helps both employers and employees understand the financial value of accrued leave days.
Tips: Enter your monthly salary in ZAR and the number of leave days to be paid out. Both values must be positive numbers. The calculator will compute your leave payout amount.
Q1: Why is 21.67 used as the divisor?
A: 21.67 represents the average number of working days in a month, calculated as (365 days ÷ 7 days × 5 working days) ÷ 12 months = approximately 21.67 days.
Q2: Is this calculation method specific to South Africa?
A: Yes, this formula follows the standard practice in South Africa for calculating leave payouts based on the Basic Conditions of Employment Act.
Q3: Are there different calculations for different types of leave?
A: This calculator is designed for annual leave payout. Other types of leave (sick leave, family responsibility leave) may have different calculation methods.
Q4: Does this include bonuses or allowances?
A: This calculation is typically based on basic salary. Additional payments like bonuses or allowances may need to be calculated separately according to your employment contract.
Q5: Is this calculation taxable?
A: Leave payouts are generally subject to normal income tax deductions as per South African tax laws.