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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 when leave is paid out instead of taken. In South Africa, this is calculated based on the employee's monthly salary and the number of leave days owed.
The calculator uses the 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 per month), then multiplies this daily rate by the number of leave days to determine the total payout amount.
Details: Accurate leave payout calculation ensures fair compensation for employees and compliance with South African labor laws. It helps prevent disputes and ensures proper financial planning for both employers and employees.
Tips: Enter the monthly salary in ZAR and the number of leave days to be paid out. Both values must be valid (salary ≥ 0, days ≥ 0).
Q1: Why is 21.67 used as the divisor?
A: 21.67 represents the average number of working days per month in South Africa, calculated as (365 days ÷ 7 days × 5 working days) ÷ 12 months.
Q2: Are all types of leave calculated the same way?
A: While annual leave is typically calculated this way, other types of leave (sick leave, family responsibility leave) may have different calculation methods according to South African labor laws.
Q3: Does this calculation include bonuses or allowances?
A: The calculation should be based on the employee's regular monthly remuneration. Some allowances may be included, but this can vary based on employment contracts and company policies.
Q4: Is this calculation method legally required?
A: The Basic Conditions of Employment Act provides guidelines for leave calculations, but specific calculation methods may vary. This formula represents a standard industry practice.
Q5: How are partial days calculated?
A: Partial days are calculated proportionally. For example, 0.5 days would be half of the daily rate.