ANSWER ID:4440

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Maintaining an employee's details is completed in the Maintenance command centre by clicking Maintain Employees. Under the Leave Details tab are the following fields:

  • Normal hours/day
  • Normal hours per week

These fields are used to calculate the annual leave allocation.

Example

An employee with 8% holiday pay will earn 4 weeks of annual leave. If their Normal hours per week is set to 40, their Annual leave entitlement will be 160 hours, in other words 4 weeks.

When deciding what an employee's Normal hours per week are, it is helpful to ask the question: "If this employee has a day or a week off sick, how many hours would they get paid?" The answer generally indicates what the normal, or standard, hours per week would be.

The Normal hours/day and Normal hours per week amounts also affect the calculation of the annual leave rate as well as the Ordinary Weekly Pay.

<h2><i class="fa fa-comments"></i>&nbsp;&nbsp;FAQs</h2><br>
No. An employee who works overtime will have their annual leave rate calculation adjusted to compensate for this.
If the Normal hours per week are over-estimated then the average rate will be lower, but the rate of annual leave will never drop lower than the current ordinary rate. If you are concerned about the Normal hours per week and its effect on the leave rate calculations whenever leave is paid, check the calculation by clicking Leave on the Enter Pay Details window. If this calculation seems wrong you might need to establish what the employee's average normal hours have been and adjust the Normal hours per week accordingly. You can do this through the Maintenance command centre.
 

Annual leave rate calculation

Payroll user guide