Annual leave is the paid leave the Basic Conditions of Employment Act (BCEA) entitles employees to take each year, accruing progressively over the course of their employment.
What it means
The BCEA sets a statutory minimum - 21 consecutive days, or by agreement one day for every 17 days worked, or one hour for every 17 hours worked - and an employer's leave policy or contract can be more generous but never fall below it. Leave accrues over an annual leave cycle, typically aligned with the employee's employment anniversary.
Where it fits in
Accrued but untaken annual leave must be paid out when employment ends, calculated against the employee's current rate of pay, making accurate leave balance tracking a precondition for a correct final payslip on termination. Leave taken during employment is paid at the employee's normal rate, with no deduction beyond the usual statutory deductions.
Key rules
- BCEA minimum is 21 consecutive days per annual leave cycle, or the equivalent accrual rate.
- Employers may not require forfeiture of leave that has lawfully accrued.
- Unused accrued leave must be paid out on termination of employment.
- Leave pay is taxed through ordinary PAYE the same as regular salary - no special exemption applies.
