Annual Leave Rules in South Africa: Entitlement, Accrual & Payouts
The annual leave rules South Africa‘s employers must administer come from section 20 of the BCEA — simple on paper, but the source of endless payroll questions: accrual during probation, leave during notice periods, December shutdowns, and payouts on resignation. This guide answers all of them with the Act’s actual provisions, plus a worked payout calculation you can reuse.
- ✔21 consecutive days per leave cycle — 15 working days on a 5-day week, 18 on a 6-day week.
- ✔By agreement you may use accrual instead: 1 day per 17 days worked.
- ✔Leave must be granted within 6 months of the cycle end — ‘use it or lose it’ policies are unlawful.
- ✔Annual leave does not run during sick leave or maternity leave.
- ✔On termination you pay out all accrued untaken leave at the final daily rate.
The annual leave entitlement: 21 consecutive days
Every employee is entitled to 21 consecutive days of paid annual leave for every 12-month ‘annual leave cycle’ (a year from the start date or anniversary). On a 5-day week that equals 15 working days; on a 6-day week, 18 working days. Public holidays and weekends inside a leave period do not count as leave days.
By written agreement you may instead use accrual: 1 day of leave for every 17 days worked, or 1 hour for every 17 hours worked. Accrual suits irregular and part-time staff — the arithmetic self-adjusts to their pattern. The free Admin Boss Leave Days Calculator applies either method instantly.
When leave must be granted — and when you can say no
Leave is taken by agreement at a time that suits both parties — but the employer must grant it so that it can be taken no later than 6 months after the end of the cycle in which it accrued. You may refuse a specific date for operational reasons, but you may not make leave practically impossible to take, and ‘use it or lose it’ forfeitures are unlawful.
- Probationers accrue leave like anyone else — there is no waiting period in the Act.
- Shutdowns: you may require leave over a December shutdown if that is the established practice or agreed — but it consumes the employee’s entitlement, so track it.
- Notice periods: an employee serving notice may take leave by agreement, but you cannot force them to take leave instead of working notice (and vice versa).
- Sick during leave: if an employee falls ill during annual leave and produces a medical certificate, those days convert to sick leave.
Pay during leave
Annual leave is paid at the employee’s normal remuneration — the wage they would have earned for ordinary hours, including regular commission or performance pay where it forms part of normal pay. Leave pay is paid before the leave starts or on the normal pay day, per your practice or agreement.
You may not pay an employee money instead of granting leave — the BCEA allows pay-in-lieu only when employment ends. An ‘extra cash instead of December leave’ arrangement, even if the employee asks for it, contravenes the Act.
Payout on termination: the calculation
When employment ends — resignation, dismissal or retrenchment — the employer must pay out all accrued, untaken annual leave at the final rate of remuneration. Worked example for a monthly-paid employee:
Only lawful deductions (PAYE/UIF, written-agreement items, court orders) may come off a leave payout — see wage deduction rules. ‘Damage’ or ‘shortages’ deductions need the section 34 procedure first.
Records and common disputes
Keep a leave register per employee: cycle dates, days accrued, days taken, balance. The BCEA requires leave records for 3 years, and most annual-leave CCMA cases are won or lost on the register’s accuracy.
The related leave types — sick, maternity, parental and family responsibility — interact with annual leave (sick and maternity leave do not count as annual leave). See sick leave rules and maternity & parental leave for those rules.
Always confirm current requirements with the official source — rules and deadlines change.
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Frequently asked questions
How many days of annual leave must I give employees in South Africa?
21 consecutive days per 12-month leave cycle — 15 working days for a five-day week and 18 for a six-day week. Alternatively, by agreement, employees can accrue 1 day per 17 days worked or 1 hour per 17 hours worked.
Can an employer force employees to take leave over December?
Yes, if a shutdown is the established practice or agreed — the leave comes out of the employee's entitlement. You must still track the days properly and cannot force leave that exceeds the accrued balance.
Can I pay employees cash instead of giving them leave?
No. The BCEA prohibits pay in lieu of annual leave while employment continues — even if the employee requests it. Leave may only be converted to cash as a payout when employment ends.
How is annual leave paid out when an employee resigns?
Pay all accrued untaken leave at the final daily rate: monthly salary ÷ 21.67 gives the daily rate, multiplied by the accrued days (pro-rata for the current cycle). The payout appears on the final payslip and is taxable through the normal payroll.
Do employees accrue annual leave while on maternity leave?
Yes. Maternity leave is not annual leave and does not interrupt the annual leave cycle — the employee continues accruing annual leave during the four months of maternity leave.
Last reviewed: July 2026 · How we research our guides
EmployerGuide.online provides general information about South African employer obligations — not legal, tax or professional advice for your specific situation. Laws, rates and deadlines change; confirm current requirements with the official sources linked above, or ask Admin Boss. See our disclaimer.