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How does the leave calculation basis "based on ordinary earnings" work?

Leave Calculation, Based on ordinary earnings

Kavya avatar
Written by Kavya
Updated over 3 years ago

Leave calculation type based on Ordinary Earnings – A relative number of hours the employee accrues each pay period, based on an employee’s ordinary earnings for the pay run. Payroo will calculate the leave accrual accordingly on a pro-rata basis.

If you choose based on ordinary earnings and if the employee's work hours are changed inside the pay run the leaves accrual rate changes on pro-rata basis.

Below is the description of how to create leaves with a calculation basis as "Based on Ordinary earnings" and how it works

Step 1 - Click on "Settings"

Step 2 - Click on "Payroll"

Step 3 - Click on "Leaves"

Step 4 - Click on "Add New"

Step 5 - Add all the required details (Leave Name, Leave Type, ATO reporting Categories, Calculation Basis, Hours Accrued Annually)

Step 6 - Click on Save

Step 7 - Once the leave category is saved, assign the leave to the employee

Step 8 - Create a pay run

Step 9 - Verify the leave accrued rate

NOTE - Here, if the number of working hours is changed the leave accrual will be changed on a pro-rata basis.

Step 10 - Publish and file the pay run

If you have any questions or feedback, please email us at support@payroo.com.au

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