Payroll Concepts > Leave Pay
Employees are entitled to be paid when they take certain types of leave.
Salaried employees’ leave pay is included in their salary as the amount is fixed, irrespective of actual hours worked.
Hourly-paid workers only receive income for actual hours worked, so they must be paid extra when they take paid leave – this leave pay is based on the employee’s ordinary hourly rate e.g. one day’s annual leave should be paid at the same rate as one regular day of work.
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