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How much should I expect for tax on leave payment?

Posted 30 March 2022

Q: How much tax would I pay on my leave payment

Dudu says:
30 March 2022 at 14:55

Hi I am not sure if this is relevant to you but I would want to know how leave payment is calculated.

I work 5 days a week from 8-5 and am entitled to 20 days annual.

My Gross is 15800, and I have 16.85 leave days. If I were to resign how much will be payable?

TaxTim TaxTim says:
30 March 2022 at 19:07

 
A: Your leave payment will be added to your final salary and taxed at the same rate (subject to the tax tables).
Based on the details you supplied:
  • your leave pay-out will be approximately R12,325 (R15,800 / 21.6 X 16,85)
  • and it would be taxed at the marginal rate of 26%.
  • You would therefore net approximately R9,120 leave pay in addition to your final salary,
  • this is an estimated calculation, and it would be best to check with your HR to find out exactly how they calculate your cost to company and leave payout.
Please note:
  • The average number of working days per month is '21.6’ which is used to work out the rate per day.
  • It doesn't matter how many hours are worked - the calculation will be the same.
This is an approximate calculation based on the figures which you have provided.

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