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How Does Annual Leave Work in South Africa

How Does Annual Leave Work in South Africa?

How Does Annual Leave Work in South Africa?
How Does Annual Leave Work in South Africa?

What exactly is annual leave?

Annual leave is paid time off from work offered to employees by their employers as part of their employment contract.

How does annual leave work in South Africa?

In South Africa, an annual leave cycle is a term of 12 months with the same employer, calculated from the employee’s start date or beginning at the end of the preceding leave cycle. Section 20 of the Basic Conditions of Employment Act (BCEA) states that an employee is entitled to 21 consecutive days of paid annual leave in each leave cycle.

Does annual leave include weekends in South Africa?

Weekends are included in the 21 days annual leave as an employee who works a five-day week job is entitled to 15 working days leave or 18 working days leave for a six-day week job.

How much must the employer pay to the employee during the annual leave?

An employer must pay at least the remuneration that the employee would have received for working for a period equal to the period of annual leave.

What payments are included in an employee’s remuneration during annual leave?

1. Car allowance.

2. Employer’s contributions to medical aid, pension, provident or similar funds or schemes.

3. Employer’s contributions to funeral benefit schemes.

Is leave pay taxable in South Africa?

Leave pay are subject to tax at normal rates applicable to individuals.

What happens if a public holiday falls during an annual leave period?

The employee is entitled to an additional day of annual leave for each public holiday that falls during the employee’s annual leave period.

Which employee is not entitled to an annual leave in South Africa?

In South Africa, an employee who works less than 24 hours per month for an employer is not eligible to annual leave.

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