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Disclaimer

This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in these articles is for guidance only and should not be relied upon without obtaining professional advice having regard to your direct circumstances.

 

Understanding Employee Holiday Entitlements

Under the Australian Fair Pay and Conditions Standard all employees (except casual employees) can get paid annual leave based on the nominal hours they've worked.

• A permanent or part time staff member accrues holiday leave at a rate of 4 weeks per year. For example:

  • An employee that works 40 hrs per week accrues 160hrs of leave per year
  • An employee that works 38 hrs per week accrues 152hrs of leave per year
  • An employee that works 20 hrs per week accrues 80hrs of leave per year

• To calculate the amount of leave accrued take the total amount of hours worked for the period and multiply by 0.0769 and this will give you the leave amount. For example:

  • An employee that has worked 520 hrs YTD will have accrued 40hrs of leave (520 x 0.0769 = 39.988)
  • An employee that has worked 494 hrs YTD will have accrued 38hrs of leave (494 x 0.0769 = 37.988)

• Remember to take off any leave taken when calculating what is owed

• Employees continue to accrue leave whilst they are on leave

• Holidays are paid at the standard rate of pay

• Holiday leave loading may or may not be paid according to what is stated in the original employment agreement.

  • If leave loading is stated as included in the package or award it is paid at a rate of 17.5% of gross holiday pay
  • For example, 40hrs leave x $20.00 per hr = $800.00 x 17.5% = $140.00. Therefore gross holiday pay including leave loading is $940.00

• Holiday leave loading does not attract the superannuation guarantee of 9% (current rate)
 
• Holidays are taxed according to the general weekly tax rates (see tables)

• Any unused annual leave in a period continues to accumulate and is payable on resignation or termination

• Holidays can only be taken at an agreed time between employer and employee

• Employers can instruct an employee to take leave in certain circumstances, for instance:

  • During a shut-down period, such as between Christmas and New Year’s
  • If the employee has accumulated a lot of leave (more than 8 weeks for a full-time employee)

• Employees employed on a casual basis do not accrue annual leave

 


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