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

Leave Calculation, Based on ordinary earnings

Kavya avatar
Written by Kavya
Updated over a week 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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