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  • Calculating payroll accrual percentages (Australia only)

This information applies to MYOB AccountRight version 19. For later versions, see our help centre.


 

 

ANSWER ID:9157

AccountRight Plus, Premier and Enterprise, Australia only

When setting up leave accruals, if you select the Equals [x] Percent of option as the calculation basis, you'll need to specify the percentage rate to calculate the correct number of entitlement hours.

Entitlements Information window with 7.6923 percent entered

The National Employment Standards specify that as a minimum, full-time and part-time employees get 4 weeks of annual leave, based on their ordinary hours of work. Also, the minimum personal leave entitlement is 10 days per year for full-time employees, or pro rata of 10 days for part-time employees, depending on their hours of work.

If your employees are entitled to 4 weeks of annual leave per year (or pro-rata for part-time employees), the percentage to use is 7.6923%.

If your employees are entitled to 10 days of personal leave per year (or pro-rata for part-time employees), the percentage to use is 3.84615%.

If your employee entitlements are different to these, see below to calculate the right percentage.

Have more questions about minimum leave entitlements? See the Fair Work website.

To calculate the accrual percentage

To calculate this percentage, you need to know two things:

  • Total annual entitlement hours (the total number of leave hours accrued per year)
  • Total annual work hours (the total number of hours worked per year)

You can then use this formula to calculate the percentage rate:

(Total annual entitlement hours / total annual work hours) X 100 = %

Let's look at some examples.

 

To calculate the percentage rate for 20 days leave per year

Let's say an employee works 40 hours per 5-day week (8 hours a day) and they're entitled to 20 days (4 weeks) leave per year.

The entitlement percentage formula is:

(Total annual entitlement hours / total annual work hours) X 100 = %

  • Total annual entitlement hours = 20 days X 8 hours a day = 160 hours
  • Total annual work hours = 40 hours per week X 52 weeks = 2080 hours
  • So the entitlement percentage is (160 / 2080) X 100 = 7.6923%

So if an employee is entitled to 20 days holiday leave per year, the percentage to use in their entitlement category is 7.6923%

Entitlements Information window with 7.6923 percent entered

This means that for every hour the employee works, they will accrue .076923 hours of holiday leave.

To calculate the percentage rate for fewer than 20 days per year

Example: 8 days personal leave entitlement

Let's say an employee works 38 hours per 5-day week (7.6 hours a day) and they're entitled to 8 days personal leave per year.

The entitlement percentage formula is:

(Total annual entitlement hours / total annual work hours) X 100 = %

  • Total annual entitlement hours = 8 days X 7.6 hours a day = 60.8 hours
  • Total annual work hours = 38 hours per week X 52 weeks = 1976 hours
  • The entitlement percentage is (60.8 / 1976) X 100 = 3.0769 %

Example: 10 days personal leave entitlement

Let's say an employee works 40 hours per 5-day week (8 hours a day) and they're entitled to 10 days personal leave per year.

The entitlement percentage formula is:

(Total annual entitlement hours / total annual work hours) X 100 = %

  • Total annual entitlement hours = 10 days X 8 hours a day = 80 hours
  • Total annual work hours = 40 hours per week X 52 weeks = 2080 hours
  • The entitlement percentage is (80 / 2080) X 100 = 3.8461 %