Calculating an employee's Average Daily Pay

In most cases, when an employee takes public holidays, sick leave, alternative holidays or bereavement leave, they are paid their Relevant Daily Pay, which is basically the payment they otherwise would have received for that day.

In cases where this cannot be calculated, the Average Daily Pay calculation can be used. This calculation, introduced by the Holidays Amendment Act 2010, looks at the last 52 weeks earnings and divides by the number of full or part days worked to calculate the Average Daily Pay for the employee. This method is likely to be most useful for temp agencies, people working on piece rates, people with a variable work pattern, companies with peak and off peak seasons amongst others.