A leave payout earning component allows you to process leave payouts through payroll. Configure the component settings to ensure the earning is taxed correctly and appears on employee payslips and payroll reports.
Add a leave payout earning component
Go to Settings.
Select Pay Components.
Select Add Payslip Component.
Select Earning as the payslip component category.
Enter the required details:
Component Name
Payslip Description
Tax Calculation Method
Input Type
Include in OID Report
Include in Payroll Transactions
Select Save.
Input types
Input types
Choose the input type that best suits how you process leave payouts.
Amount input
Use Amount Input when you know the leave payout value and want to enter it manually.
Example:
An employee is entitled to a leave payout of R5,000
Enter 5,000 as the amount
The system pays the exact amount entered.
Unit input
Use Unit Input when the leave payout is based on the number of leave days or hours.
Example:
Leave days to pay out: 10
Rate per day: R500
The system calculates the payout as:
10 × R500 = R5,000
Fixed input type
Use the Fixed input type when the leave payout amount is a predetermined value and does not depend on hours worked or an hourly rate. The system pays the exact amount entered.
Calculation example
Fixed amount entered: R5,000.00
Leave payout processed: R5,000.00
The system calculates the payout as:
R5,000.00 = R5,000.00 paid
Hourly input type
Use the Hourly input type when the leave payout is based on the employee's hourly rate and the number of leave hours being paid out. The system calculates the payout automatically.
Calculation example
Hourly rate: R120.00
Leave hours to be paid out: 40 hours
The system calculates the payout as:
R120.00 × 40 = R4,800.00 paid