Other Leave Rates

For FBAPS leave types (Family Violence, Bereavement, Alternative, Public Holidays, Sick), the rates used are slightly different to Annual Leave Rates. 

Relevant Daily Pay - The amount the employee would have earned if they'd worked that day, including any additional earnings such as commission. An employee should usually be paid their Relevant Daily Pay for FBAPS leave, if the Relevant Daily Pay is known.

Average Daily Pay - The daily average of an employee's earnings over the previous 52 weeks. If it's impossible or impractical to determine the Relevant Daily Pay for an employee, or if the employee’s daily pay varies within the pay period when the holiday or leave falls, the Average Daily Pay can be used instead. 

Relevant Daily Pay

If the employee has a Work Pattern set on their Employment tab with standard hours per day, PayHero will pay those hours at the employee's normal rate.  

Clicking the  button on the pay line will provide additional information on the calculation.

If you don't feel the hours and rate used are accurately indicative of their Relevant Daily Pay for the day they took leave, you can change the hours and rate paid to the employee to reflect what they would have been paid that day. Note that the Days field is still important, as it determines how much the employee's leave balance will be reduced by for Sick Leave or Alternative Leave. 

If you're unable to determine the Relevant Daily Pay for the employee and wish to pay the Average Daily Pay instead, simply change Hours in the drop-down list to Days. 

Average Daily Pay

For employees with no clear hours set in their Work Pattern, PayHero will default to using their Average Daily Pay, based on their 52-week pay history. Alternatively, if you add leave directly to the draft pay rather than using Leave Requests, then PayHero won't know which day the leave is for so may default to Average Daily Pay. 

Clicking the  button on the pay line will provide additional information on the calculation.

If you know the Relevant Daily Pay that the employee would have earned that day, you can change Days in the drop-down list to Hours and specify the hours and rate to pay. Note that the Days field is still important, as it determines how much the employee's leave balance will be reduced by for Sick Leave or Alternative Leave. 

Work Days

An accurate historical record of the gross earnings and Work Days recorded on each employee's pay is crucial for accurate calculation of Average Daily Pay.

Whenever you run a pay there is an option to enter Work Days for the employee. This is a whole number and represents how many days were worked in the pay period. This number will include any days the employee has taken as paid leave.

It's important this is recorded correctly to ensure the Average Daily Pay calculations are accurate.

PayHero does what it can to default this correctly and will enter an amount dictated by the Work Pattern set for that employee. If there is no regular schedule, recorded timesheet entries will be used. 

If you find your employees' Work Days have been incorrectly set in the past, you can update those on their Pay History tab.