13/07/2026
In relation to Vacation Leave Entitlement, it is common practice that the full annual entitlement is visible on the payslip, with effect from the first one issued in January.
However, this does not mean that the employee has a right to the full amount. Vacation leave is availed of on a pro-rata basis, depending on the number of days the employee has worked in a full calendar year.
Let's say the employee resigns on the 30th June. Irrespective of what balance was indicated on the May payslip (the previous month), the employee shall only be entitled to half of the full annual entitlement (subject to the employee not having unpaid leave during the first 6 months of the year).
In such cases, we have to understand that both the Employer and the Payroll Software were not aware of the employee's resignation between January and May, and thus indicated the full entitlement on the payslip till May.
MG Consulting Malta
HR | Payroll | Tendering
[M] +356 7905 3988
[E] [email protected]
