Calculating Relevant Statutory Entitlements

Relevant statutory entitlements:

  • Holiday allowance.

  • Annual leave pay.

  • Sick leave pay.

  • Maternity leave allowance.

  • Wages in lieu of notice.

Relevant statutory entitlements are calculated on the basis of his 12-month average wage (OE VR ROLLAVG ).

If an employee is employed for less than 12 months, the calculation is based on the shorter period

To avoid deflating the average wages and hence reduce the amount of statutory entitlements in calculating the 12-month average wages, you have to:

  1. Identify those situations in which an employee is not paid wages or full wages.

  2. Exclude the periods (EO AC DISRGRD UNIT) together with the wages paid (EO AC DISREGARD WG ) from OE VR ROLLAVG and other such periods.