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When an employee takes leave, you need to include it on the pay

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New Zealand only

For Australian help, click here.

If you've set up leave for your employees, you can pay them leave when you do a pay run. The process for doing this is different in Australia and New Zealand, as shown below.

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Entering Unpaid leave

If entering unpaid leave When when completing the employee's pay run, reduce their normal hours by the number of hours of unpaid leave. You can also add a note about the unpaid leave which will appear on the employee's payslip.

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title	Entering leave on a pay run (Australia)

Entering leave on a pay run (Australia)

If an employee is entitled to paid leave, additional lines will be available on the payslip for entering the number of hours of leave taken. The employee’s available leave balances are also shown.

To pay leave, just enter the number of hours of personal leave and/or annual leave the employee has taken during the pay period.

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Adjusting normal hours for leave taken

If you’ve entered a standard number of hours per week for the employee, you might need to adjust this amount to exclude the hours that were taken as leave. For example, if an employee normally works 40 hours per week, but has taken 8 hours of annual leave, you would need to change the number of hours in the Normal line to 32, so that their total hours remains the same.

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Negative leave balances

Note that if employee is taking more paid leave than they are entitled to, their leave balance will become negative. However, they will still be paid for all of the leave entered on the pay run.

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Leave pay rate

Leave is paid at the employee’s normal hourly pay rate. So, if an employee normally receives $25 per hour, they will be paid $25 for each hour of leave taken.

Public holidays

If an employee is entitled to paid public holidays, these days can be processed on their pay like any other paid workday. This means if an employee takes 5 days off work (4 days as annual leave and 1 day for a public holiday), simply process a regular pay with 4 days annual leave.

Learn more about public holidays on the Fairwork website

If you want public holidays to be shown separately on an employee's pay, set up a new earning based on the employee's regular hourly rate. Here's an example.

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You can then enter the number of public holiday hours on the employee's pay. Remember to reduce their normal hours to exclude the hours that were taken as a public holiday.

Here's an example 40 hour pay which includes 4 regular days (32 hours) and 1 public holiday (8 hours).

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This ensure's they're not overpaid.

Learn more about unpaid leave.

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title	Entering leave and holiday pay on a pay run (New Zealand)

Entering leave and holiday pay on a pay run

(New Zealand)

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Need more help? Check out our free Payroll webcast and let an MYOB expert explain what you need to do.
There are six different types of holiday and leave pay you can include in an employee’s pay:
Annual leave—pay your employee’s holiday pay.
Sick leave—pay your employee for days not worked due to illness.
Alternative holiday—pay your employee for a day off that they’ve taken in exchange for working on a public holiday.
Public holiday—pay your employee for a public holiday they didn’t work.
Public holiday worked—pay your employee for working on a public holiday.
Final pay—pay all owed entitlements to an employee who is leaving your employment. Learn more about processing a final pay.

Note that MYOB Essentials doesn’t keep track of how much of any types of leave your employee has accrued or used. You need to track these amounts manually. Also learn how leave is calculated .
When you pay leave, the Normal hours amount is used for annual leave calculations. The Days being paid this period amount is used for bereavement leave, alternative holidays, public holidays, public holidays worked and sick leave calculations. The Days being paid this period includes all days being paid, including normal days worked and any paid leave taken. Learn more about Leave calculations.
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Adding leave to the pay run

You When completing the employee's pay run, add holiday pay or leave to the pay run by clicking Add holidays or leave on the pay run screen for each employee when you’re processing their pay.

Click Add holidays or leave.
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On the Holidays & leave popup window, select click the type of leave you want to include in the employee’s pay.
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In the calculation popup window, specify the details of the leave. If necessary, you can make any required changes to the amounts in the calculations, or enter additional data to make sure the employee is paid the correct amount. For

more information, see

leave that's measured in days, like sick leave, you can enter a part day, for example half a day is 0.5. Learn more about leave calculations.

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Paying leave which spans multiple pay periods

If the employee's daily rate drops from the first period of paid leave, you'll need to change their pay rate to match. For all the details, see Leave calculations.

Click Save to return to the Pay run page where the leave is now included.
Repeat from step 1 for from step 1 for any additional types of leave, or if you need to add more of this leave type at a different rate.

You can add as many different lines of each type of leave as you want. If you need to pay a particular type of leave at more than one rate (for example, if you need to pay sick leave for a Sunday and a Monday, where the employee usually receives a higher rate for working on Sunday), you need to add an additional line of leave to the payslip for each pay rate by clicking Add holidays or leave again, and choosing an appropriate calculation to give them the different rate required.

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The Days being paid this period includes all days being paid, including normal days worked and any paid leave taken.

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You can enter any details of the leave, such as dates leave taken, in the Notes to appear on payslip field when completing the pay run.

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Do a pay run Set up leave

Leave calculations

Leave loading (Australia only)

Paying your employees

Edit or delete a pay

Managing your employees’ leave

Unpaid leave

Paid parental leave (Australia)

Paid parental leave (New Zealand)

Rostered days off (RDOs)

Time off in lieu

Long service leave

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Key

Entering leave on a pay run (Australia)

Adjusting normal hours for leave taken

Negative leave balances

Leave pay rate

Public holidays

Entering leave and holiday pay on a pay run

Adding leave to the pay run

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