Hi Philip
By standard processes and procedure, any income or earning by a worker is subject
to some amount of taxation or the other. Depending on the state of your operation you may
have a different rate.
kindly ask for the tax manual from a tax office near you and get more details.
In some instances it is subjected to withholding
tax but if it can be properly managed it may be processed as PAYE.
Hope this helps?
Regards

Hi Stephanie,
Thanks for your questions.
HR is right because you were not due for leave when you took it. It is appropriate that approval
for such leave should be granted by HR. By deducting from your salary HR has treated your
leave as unauthorized and the deduction was for absenteeism.
When you become due on the anniversary of your employment you will be granted your full leave
days since the penalty for the one earlier taken had been paid for.
I hope this helps
Regards

Hello, i started work in an organization 20th of January 2018. i went on leave July 25th 2018(when i read in my contract that i could take leave earlier than 12months if granted by some key people) however upon resumption, HR deducted my salary for those days i was on leave and said i was not yet entitled to leave. now my question is this 21st January 2019 makes it one year. do i get my complete leave days for 2018 since my salary was deducted last year? and as at 2019, will i still get any days as leaave

Thanks for the compliment Kikilomo,
Kindly note that the percentage of annual leave allowance is different for different organizations.
I believe this should ideally be stated in your contract of employment or the company’s handbook. Once
you are sure of the rate the calculation becomes a lot easier. Generally, leave allowance is a percentage
of the staff annual basic salary. For example, a staff whose basic salary is N 50,000 and have
a leave allowance given as 10% will have his leave allowance computed as 50,000*12*10/100 = N 60,000.
The key criterion is that it is a percentage of the staff annual basic salary.
Hope this helps?
Best regards

I work in an organization where leave allowance is not properly calculated. Please can you help me with the standard percentage for leave calculation. Also I appreciate your patience and response to people’s question and for taking out time to write such an insightful article. Thank you so much

Hi Kingsley,
Thank you, kindly rephrase your question I don’t really get the point.
Regards

Your analysis on annual and related matters is very educative. However, I don’t understand it when you said “Intelligently too, since annual leave is earned what I advised is that you build annual leave pay into your staff salary.” How does this work?

Please explain in details.

Hi Austin,
The standard practice is to pay upon the commencement of the leave. However, a lot of flexibility is observed by the organizations for financial planning purposes. Some organization pay on a monthly basis so as to reduce the burden of paying a lump sum ( Divide the total allowance by 12 and make it part of the employee’s salary per month), others pay at the anniversary of the employee’s employment whether the staff is going on leave right away or not ( Operational reason). The standard practice, however, is to pay upon the commencement of the leave. Hope this helps? Regards

Hi Ivan,
Your comment is quite motivating.
Thank you
Kayode Ibukunoluwa-Micah

Hi Dela,
In that case, go ahead and press for it encashment or better still trade it for the notice period.
Regards

Hi Kayode,

Sorry, I was not paid leave encashment but I was paid my leave allowance

Hi Kayode,

thank you so much for the swift response.

I was on able to proceed on the leave because of business demands. There was not formal agreement to defer my outstanding leave. the assumption is that, I am entitled to it but did not enjoy the benefit. I was paid leave allowance for the unused leave period.

I really do appreciate your insight and feedback.

God bless you!!!

Hi Dela,
On your questions, I would like to know if the deferment of your outstanding leave were at the instance of your organization? Also, were you paid leave encashment for the unused leave period? If such requests were approved and you were not paid encashment you have the right to demand payment for the outstanding leave earning days. On the issue of notice, the reasons for such demand is to ensure that you did a proper handover and make sure that operation is not negatively affected by your resignation. However, since you have the option of payment in lieu of notice you can discuss with HR to trade the outstanding leave period for the 3 months notice. But please ensure that it is documented and agreed to.