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When an employee takes leave, you need to include it when you do a pay run. The process for doing this is different in Australia and New Zealand, as shown below.

Entering unpaid leave

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.

Entering leave on a pay run (Australia)

Entering leave on a pay run (Australia)

When completing the employee's pay run, 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.

annual and personal leave fields on the pay run

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 remain the same.

annual leave and normal hours highlighted on pay

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.

negative annual leave available

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.

Leave loading

Some federal and state awards provide for annual leave loading for employees taking annual leave. Check out Leave loading for information on setting this up and paying it.

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.

example setup for public holiday earning

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).

pay with 8 hours entered against public holiday earning

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

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

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 .

Adding leave to the pay run

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

  1. Click Add holidays or leave.
    Add holidays or leave button on pay
  2. On the Holidays & leave popup window, select the type of leave you want to include in the employee’s pay.
    Holidays and leave popup window
  3. 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 calculations.
  4. Click Save to return to the Pay run page where the leave is now included.
  5. Repeat 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.

Example pay with 3 entries for annual leave

We also have help for setting up the following types of leave:

Rostered days off (RDOs)

Time off in lieu

Long service leave

Paid parental leave (Australia)

public holiday on pay run