Employee Lifecycle

Final Payslip Guide: What Must Be Included

A final payslip covers more than just the last few days worked. Missing an item is one of the most common sources of CCMA disputes after an employee leaves.

What must be included

• Outstanding salary — pro-rata pay for days worked in the final period
• Unused annual leave payout — all accrued but untaken annual leave, paid at the employee's current daily rate
• Notice pay — if notice was not worked, it must be paid out (or, if the employer waives notice, still generally payable)
• Severance pay — for retrenchments only, at least 1 week per completed year of service
• Any outstanding bonuses or commission already earned
• Pro-rata 13th cheque — if contractual, calculated for the portion of the year worked

What is deducted

• PAYE on the full final payment (leave payouts and notice pay are taxable)
• UIF, up to the normal monthly ceiling
• Any outstanding staff loans or advances, if agreed to in writing
• Leave taken in excess of what had accrued (negative leave balance), if applicable

Sick leave is not paid out

Unlike annual leave, accrued but unused sick leave is not paid out on termination under the BCEA — it simply falls away.

UIF documentation

Issue a UI-19 form (or the equivalent digital record via uFiling) confirming the employee's dates of employment and earnings, so they can claim UIF benefits if eligible. See our UIF After Resignation guide for what employees can and can't claim.

Timing

There's no single statutory deadline for final pay in the BCEA, but best practice — and most contracts — require it on or before the employee's normal payday for the period in which they left. Delaying final pay without good reason is a common cause of CCMA referrals.

People Also Ask

Is sick leave paid out when an employee leaves?

No — unused sick leave has no cash value and simply falls away on termination.

Is a final payslip taxed differently?

No — PAYE and UIF still apply in the same way as any other payslip, though leave payouts and notice pay are included as taxable remuneration.

When must a final payslip be paid?

There's no single BCEA deadline, but best practice is on or before the employee's normal payday for the period they left.

Related Resources

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