Payroll Concepts > Pay-Related Calculations > Leave Pay
Employees are entitled to be paid when they take certain types of leave as discussed in the following section:
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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