Is leave worked on Gross Daily Rate Equivalent or Basic Daily Rate?

Note that from mid 2019, Leave-Pay-Taken has to be based on the daily equivalent of the Gross-Pay and NOT the Basic-Pay of the particular month that the leave is cashed. However, there may be a Collective agreement that you have that could supersede this National Employment Act which allows for leave to be paid using the normal Daily pay-rate. According to the in the new Employment Act (JULY-2019): The only extra that is NOT included for the Daily Rate equivalent for "cashing of Leave" is the Bonus or Gratuity or Terminal Benefit End-of-Contract payments. If you enter any value in the Bonus field or a value in Terminal Benefit or Gratuity payout, then the leave Daily-Payout-Rate won't increase for leave pay out. All other extras are used to increase the basic daily pay rate when an employee cashes their leave. To work out how its calculated in a typical scenario after you have processed the payslip: Take the gross wage on the payslip and then subtract the Leave-Pay and then subtract the Bonus amount and subtract the Terminal Benefit or Gratuity payout(if any) and divide the result by the "default work days" set for your company to get the leave Daily-Payout-Rate. Normally this is set to 26 standard days per month. eg $grossdayRate = ((grossWage - Bonus - gratuityPaid - termBenPaid) /workdays-default). If you are sure your Collective agreement is ratified by an official Labour Officer and that it is still valid, then you may change Harvester to work out "cashed leave" for Daily-Paid employees on the Basic Daily pay-rate. Please go to Settings and then Company Settings and on the bottom right of the page tick the check-box for "Leave Rate on Basic". This will ensure that if an employee is not of the employee type Fixed but is of the type "Daily" and the employee wants to cash their leave then when you enter the "leave-days-taken" then it will multiple this by the Daily pay-rate and NOT the Gross-Equivalent Daily pay-rate. Don't forget to recalculate by re-submitting any payment again where Leave-days were taken in order that the system works out leave on basic Daily rate. Please check with your local Labour officer if your collective agreement will supersede the National Labour law. Some officers do not accept this. NB note concerning the time an employee is cashing most of his/her leave: Even if leave is set to be based on "gross", in certain circumstances it will revert back to being worked out on "basic". An employee may be cashing most of his/her leave and may have a small basic amount and therefore a smaller gross-wage. Note that the Gross for leave calculation purposes does NOT include the "Kwacha leave payout" itself. ie Take the gross wage on the payslip less the Leave-Pay and subtract the Terminal Benefit or Gratuity payout(if any) and divide the result by "workdays-default" to get the leave Daily-Payout-Rate. So the "gross-wage less the leave payout" is divided by the default days in the month(eg 26) to get the actual gross-pay-rate for leave purposes. If this rate is less than the normal-day-rate then the day rate used for cashing leave will NOT be the gross-day-rate but the normal-day-rate. ie the gross-day-rate (in this case the lesser of the two rates) will NOT be used. The Harvester program will correctly calculate the leave based on the normal daily rate. The law states that the Leave-pay that is cashed is based on the "gross daily-rate-equivalent" but this gross MUST NOT be based on the gross including the leave-pay-taken but rather gross less leave pay taken. (The gross-day-rate is worked out on gross less the leave-pay-taken divided by the standard days in the month.)