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An employee’s annual leave cycle is the 12 months since the beginning of employment, and every 12 month period thereafter. You are required to provide at least the following amounts of paid annual leave to employees:

1. 21 days of consecutive leave per leave cycle, or
2. 1 day for every 17 days worked / entitled to be paid, or
3. 1 hour for every 17 hours worked / entitled to be paid.

The last two are only valid on agreeement. It is therefore important to stipulate how annual leave will be calculated in your employment contract.

SimplePay defaults to using method 3, as it’s generally the fairest method of calculating leave.

The BCEA further specifies that leave pay is at the rate of pay the employee was entitled to right before taking the leave.

You are using the help system of SimplePay, a payroll system that simplifies the payroll process. Designed just for South Africa, it's a fully online solution. Read more.