In this section we explain how Personal Leave Accruals are calculated and displayed in a Payslip.
- Has an accrual calculation
- Personal Leave is accrued at the rate of 3.84615% for each applicable hour your employee works.
- This provides 10 days Personal leave each year based on a 38 hour week.
- Personal leave accrual balances are recalculated and updated for each payslip
- Personal leave should also be used to record any Sick Leave taken by your employee(s)
How does Easy Payslip calculate Personal Leave Accruals?
Leave accruals are calculated based on the following criteria
- The employee has been set up as having Personal Leave entitlements
- Refer Help Guide 'How to Edit Employee Entitlement Details' on how to do this
- The employee works 'Applicable' hours
Applicable hours that are included in the calculation of leave accruals are:
- Base Hourly Rate
- Additional Base Rate 1
- Additional Base Rate 2
- Additional Base Rate 3
- Additional Base Rate 4
- Annual Leave Pay
- Sick Leave Pay
- Personal Leave Pay
- Long Service Leave Pay
Hours and/or payments that are not included in the calculation for leave accruals are:
- Overtime (any option)
- Taxable Allowances (any option)
- Untaxed Allowances (any option)
- Annual Leave Loading
The Payslip example below shows this in more detail
As can be seen in the above example, 36.50 hours will be used in determining the hours accrued for this pay period.
Let's look at the Accrual calculation in more detail
Personal Leave (without Sick Leave) Accruals
Step 1 - Confirm Opening Balance of Accrued Hours
To demonstrate how Accruals are calculated and displayed in a payslip, we will assume the following details were entered at the time of setting up the Employee
Step 2 - Determine Applicable Hours
As shown in the example above, this is 36.50 hours this period.
Step 3 - Calculate Accrued Personal Leave Hours this period
As noted above Personal Leave is accrued at the rate of 3.84615% of each applicable hour your employee works. (This provides 10 days leave each year based on a 38 hour week).
For this particular period, the calculation for Personal Leave Accrual will be as follows:
= Applicable Hours x Accrual Rate = Accrued Hours this period
= 36.50 x 3.84615% = 1.40 Hours.
Therefore 1.40 hours of Personal Leave will have been accrued by the Employee this pay period.
Step 4 - Deduct Personal Leave Hours taken this period
As shown in the example above, the employee had 2.25 hours of Personal Leave this period.
Step 5 - Determine the Closing Personal Leave Hours Balance
The closing Personal Leave hours balance at the end of payslip 1 would be calculated as follows:
Therefore at the end of Payslip 1, the employee would have 7.15 hours of Personal Leave remaining.
This would be shown in the Payslip as:
Step 6 - Repeat from Step 1 next Payslip
Easy Payslip will continually calculate and display the updated accrued hours in each payslip.
For example, if we assume your employee works a 38 hour week for their second payslip (with no Leave taken), they will accrue 1.46 hours of Personal Leave (38 hours x 3.84615% = 1.46).
Their Personal Leave Closing Balance at the end of the Payslip 2 would therefore be 8.61 hours as shown below:
Other points to Note
- Your employee can have a negative Leave Entitlements Balance.
- The system will not stop you from adding more hours than recorded
- You are able to manage any negative leave hours with your employee
- There are no limits
- Your employees can accrue and/or take as much leave as you need