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South Africa Leave Payout Calculator (2024)

Calculate your accrued leave payout on resignation, retrenchment, or end of contract under the BCEA 1997.

πŸ‡ΏπŸ‡¦ South Africa βœ” BCEA Compliant ⚑ Instant

πŸ“… Leave Payout Calculator

Results update instantly

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days
BCEA minimum: 21 consecutive days (15 working days) per year
months
Total Leave Payout
R 0
Gross β€” before PAYE deductions
Leave Days Value
R 0
Daily Rate
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Hourly Rate
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ℹ️ Leave payout on termination is taxed as normal income (PAYE applies). It does not qualify for the severance pay tax exemption.

Leave Payout in South Africa β€” What the BCEA Says

Under Section 20 of the BCEA, every employee who works a 5-day week is entitled to 21 consecutive days (15 working days) of annual leave per leave cycle. For 6-day week employees, this is 18 working days. Your employer may not pay you in lieu of annual leave while you are still employed β€” the leave must be taken. However, on termination of employment (resignation, retrenchment, dismissal, retirement, or end of contract), any accrued and untaken annual leave must be paid out.

What Happens to Sick Leave on Termination?

Unlike annual leave, sick leave is not paid out on termination under the BCEA. Sick leave can only be used for actual illness and cannot be converted to a cash payout unless your employment contract specifically provides for this (unusual). The 36-day sick leave entitlement over a 3-year cycle simply lapses on termination.

Pro-rata Leave on Resignation or Retrenchment

If you leave before completing a full leave cycle, you are entitled to pro-rata leave payout. The formula is: (months worked in cycle Γ· 12) Γ— annual leave entitlement Γ— daily rate. This calculator handles both full-cycle and pro-rata scenarios.

πŸ“ Leave Payout Formula

Leave Payout = Accrued Days Γ— (Monthly Salary Γ· 21.67)
21.67= Average working days per month (260 days Γ· 12)
Pro-rata= (Months Γ· 12) Γ— Annual entitlement Γ— daily rate
Full cycle= Total accrued days Γ— daily rate
πŸ“ Example β€” R20,000/month, 15 accrued days: Daily rate = R20,000 Γ· 21.67 = R923.40
Leave payout = R923.40 Γ— 15 = R13,851
Pro-rata (8 months worked): 8/12 Γ— 15 Γ— R923.40 = R9,234

Frequently Asked Questions β€” SA Leave Payout

Yes. On resignation, your employer must pay out all accrued and untaken annual leave. The amount is based on your daily rate multiplied by the number of days outstanding. This payment is subject to normal income tax (PAYE).
No. The BCEA requires employers to pay out all accrued annual leave on any termination of employment, including retrenchment. Failure to do so is a contravention of the BCEA and the employee can report the matter to the Department of Employment and Labour.
The BCEA minimum for a 5-day week employee is 21 consecutive days (which equals 15 working days) per annual leave cycle. For a 6-day week employee, it is 18 working days. Your contract may provide more β€” you are always entitled to the higher amount.
Leave payout on termination is taxed as normal income at your marginal PAYE rate. It does not qualify for the special severance pay tax exemption (which only applies to the statutory severance pay component). Your employer must include it on your IRP5.
⚠️ Legal Disclaimer This calculator is based on BCEA 1997 minimum requirements. Actual entitlements depend on your contract and specific circumstances. This is not legal advice.