Switch to TaxTim and WIN R10,000  T&C's apply
How do you currently do your tax?
SARS eFiling Tax Practitioner Auto-assessment New to tax


How do you calculate leave days when paying out your employees



Q: How do we calculate leave days?

Scenario 1: An employee who works 40 hours per week and who has a monthly basic salary of R17933.00 and has carried over 20 leave days of which we would need to pay out.  

Scenario 2: An employee who works 37.5 hours per week not 40 hours who has the same basic salary of R17933.000 and had 20 leave days to be paid, how would you calculate leave days?

 

A: You can calculate leave days as follows:

Take the gross monthly salary divided by 21.67 multiplied by leave days ie:  (R17933.00 ÷ 21.67) x 20

Please note:

  • The average number of working days per month is '21.67'  which is used to work out the rate per day.
  • It doesn't matter how many hours are worked - the calculation is the same in both scenarios. 
  • This is an approximate calculation based on the figures which you have provided.


This entry was posted in Tax Q&A and tagged , . Bookmark the permalink.



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.