Annual Leave Rates

When an employee is paid for Annual Leave Taken the rate will automatically be paid out at the highest of their Ordinary or Average Weekly Pay Per Day. The option for Normal Daily Pay is also available when using a quantity of hours.

Ordinary Weekly Pay Per Day - The average weekly rate over the last four weeks, divided by the number of days normally worked per week, this rate will usually be the highest.

Average Weekly Pay Per Day - The total gross earnings over the past 12 months, divided by the number of weeks worked and then divided by the number of days normally worked per week.

Normal Daily Pay - The regular hours per day paid at the employee's normal rate.

The exception to these rates are for the 12 months after an employee returns from parental leave you pay the Average Weekly Pay Per Day for any Annual Leave that became due during parental leave or in the 12 months following.

In The Pay

From the draft pay you'll see the Annual Leave Taken pay item on any employees taking leave in the pay period.

For a further breakdown on these rates you can click the  button on the Annual Leave Taken pay item to see exactly how these rates are being calculated. The highlighted option in green is the rate currently applied.

Changing The Rates

If PayHero doesn't have enough history to calculate these leave rates, or if you disagree with the calculated rates, you can change them using the Quantity drop-down list to change the payment units to Hours from Days. Doing so will allow you to manually set the total days, hours, and rate the leave should be paid for. 

For more information on Annual Leave payments see this article from MBIE.