Annual Leave Encashment

I have a question regarding annual leave calculation when an employees resign. Annual leave given to an employee is until the day that he resigned/his last day of work?

If an employee resigns of the 2nd May 2012, his last day will be 1st June 2012. If he has an eligibility of 21 days in a year, the annual leave that I must be paying him will be 21 days/ 12 months * 4 months/5 months??

Annual Leave computation is until the Last Day of Service.

For the employee Last Day of Service on 01 June 2012 (assuming no carried forward leave from previous year and he has served for more than 1 year), his annual leave for Year 2012 can be prorated as:

(No. of months in service/12) * Annual Leave Entitlement
= 5/12*21
= 8.75 (9)


(No. of calendar days served)/(No. of calendar days)*Annual Leave Entitlement
=8.78 (9)