Do i have to tick include in every hour worked leave accrual when setting up annual & personal leave
Hi
in setting up personal and annual leave in payroll items, do i have to tick the ''include in every hour worked leave accrual''
Thanks
Best Answer
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@miriane Leave accrual rates are based on your workplace's standard work week - eg 38 or 40 - & the particular leave entitlement - eg 4 weeks for AL / 2 weeks for personal leave - NOT on the hours each (FT v PT) employee specifically works.
The usual rate for Personal Leave (PL) is: 0.03846 (This is based on a standard 38-hr week x 2 week/10 working days entitlement):
38 hrs x 2 wks = 76 Hrs entitlement p/yr
76 Hrs / 52 wks / 38 hrs p/wk = 0.03846 Hrs accrued p/hr worked.
The usual rate for Annual Leave (AL) is: 0.07692 (This is based on a standard 38-hr week x 4 week/20 working days entitlement):
38 hrs x 4 wks = 152 Hrs entitlement p/yr
152 Hrs / 52 wks / 38 hrs p/wk = 0.07692 Hrs accrued p/hr worked.
NOTE: Reckon will round both of these accrual rates to 0.03833 & 0.07694 respectively. This is NOT an issue (as we're talking minutes!) & is just due to the fact that the accrual rate is calculated to 5 decimal places, whereas the leave hours displayed is only to 2.
If leave is set to every hour accrual, the rates are then the same for all employees, regardless of hours worked. That's why hourly is preferable as it's a default that allows for all/any variables 😁
eg when set to hourly, leave will accrue based only on the specific hours entered on the Paycheque …whether that's 1 or 38 😊
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Answers
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Hi @miriane
Yes, leave accrues whilst on paid leave also 😁
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when i entered paid annual leave it will accrue the personal leave and deduct annual leave and when entered personal leave it will accrue annual leave and deduct personal leave.
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it should also be accruing leave when it is taken as well as deducting it. I usually look at the balance as I process the pay and manually calculate the leave accrued for those hours and deduct the hours taken and see if that is the correct figure in the pay window
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so personal and annual leave considered as working hours.
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If you don’t include the 4 weeks leave in leave accruals, the employee won’t accrue the full leave entitlement for the year if you are accruing by hour, which is the best way to do it
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Yes, if an employee takes paid leave, this is part of their ordinary time earnings (OTE)
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Thank you. I would like to know if an employee works 8hrs a day, 4 days = 32hr/week
which accrual rate i have to put in personal: 0.04807 or 0.03846
32hr/wk x52 =1664hr/yr
10 days x 8 hrs = 80 hrs/yr
80 ÷ 1664 = 0.04807 or this 0.03846
i am not sure if my formula is correct.
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Thank you so much Shaz for your help! an employee argued that because she works 8hrs a day the accrual rate should be different. i calculated her personal and annual leave manually based on the total number of hours worked x accrual rate 0.03846 personal and 0.07692 as they're not entered by the former manager from the start of employment. But she argued that she used the leave calculator in fair work site and that my calculation of accrual is wrong.
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If you multiply her average number of hours a week and multiply by 4, that’s her annual leave hours per year. It works exactly the same as when you use the figures Shaz posted. If she works 8 hours a day that’s 40 hours a week and so 160 hours per year
160 divided by 52 = 3.076 hours a week
3.076 divided by 40 = .07692 per hour
Might be easier for her to understand, and as Shaz says if it’s entered by hour the leave is exact and fair
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yes i entered the leave by hour. she only argued the personal leave accrual rate as she works 8hrs a day.
Thank you Kris and Shaz, i have to tell her of what i have learned today.
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Personal leave is normally half of annual leave, and it doesn’t always accrue from year to year. Depends on the award
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Personal Leave has carried over (like AL) for many years now.
However, the amount of leave entitlement can be more than the standard, in some Awards / Regd Agreements 😬0 -
I didn’t realise it carried over, thought it was up to the employer and award. Thanks Shaz
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@Kris_Williams It changed as part of the Fair Work Act's introduction of the NES (National Employment Standards) in 2009 😊
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Hi,
In manual calculation, in total the number of hours worked do i have to add the P/L and A/L used plus hourly work then multiply the accrual rate and after that i have to deduct the leaves used? then I would get the P/L and A/L available/balance?
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yes correct @miriane
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Thank you so much Kris! big help! Have a Merry Christmas!
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Same to you 🎅🧑🎄🤶🎄🎁. …
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