Entitled, Accrued and Advanced leave – what is the difference?

We get a lot of questions around the labels used in payroll to describe Annual Leave so the following will hopefully help.

Entitled, Accrued, and Advanced are used to define the different elements of Annual Leave.  To understand them you first must remember that an employee’s Annual Leave year runs for a 12 month period annually from when they started (or a Company Anniversary Date if used).  At the end of each year, the balances are changed from one definition to another.

The leave that you accrue during the year (within your current holiday pay year) is called Accrued (or Accruing) Leave and every pay this keeps increasing based either on hours worked or days paid (depending upon setup) so that at the end of your 12 months you will have accrued your total minimum entitlement of Four Weeks (might be shown in hours or days), note however that the Holiday’s Act does not recognize the concept of ‘accrued leave’, it only references ‘entitled leave’.  The Accrual of leave is mainly done for Accounting (to record liability) and for the employees so they can have some understanding of their leave balance

At the end of your holiday pay year, the total Accrued Leave should be transferred to Entitled (or Outstanding Leave) and your accrual starts all over again from zero.  So on the date of your anniversary, your Entitled balance should show 20 days (weeks or hours), less any leave taken already and Accrued should be reset to zero.

If during the year you take leave (and you have no days left in Entitled as you have taken them all) then the leave you take is called Advanced as it is effectively an advance of your current year’s entitlement as strictly speaking you are not entitled to your leave until you have completed each 12 month period.

Most payrolls will draw down leave from your Entitled balance first and then from Accrued so you cannot have a situation where there is a figure in Entitled and Advanced.

185 thoughts on “Entitled, Accrued and Advanced leave – what is the difference?

  1. Annual Leave O/S from last year = 98.5
    Annual Leave Accrued this year = 46.15
    Annual Leave Total = 144.65
    Can I take advance leave with pay. Been told from work that I have no annual leave. But figures above show otherwise, do I have a misunderstanding on my behalf of these figures ?

    1. Hi Terence,

      On the face of it you have 98.5 hours Entitled/Outstanding Leave which you are allowed to take upon mutual agreement with your employer. Many employers also allow employees to use up their Accrued leave progressively as well, but this is at your employer’s discretion.

      It also looks like you are accruing leave in Hours. There is no basis under NZ Legilsation to accure any leave in Hours. Should be in Days or Weeks (Annual Leave).

      If you have more specific questions then give the Labour Department a call, they are there to assist you and employers on employment matters. You can find them at online by clicking HERE!

  2. Hi our holidays are our payslip in hours not in days or weeks which is hard to work out if we are getting what we’re entitled to. Are we only allowed to take outstanding leave when we take holidays. Just been told we’re not allowed to take accruing hours anymore(these also are on our payslip). Do we have to use lieu days when the company says we have to take them by a certain time. Thanks

    1. Hi there,

      My response to the question on 13/04/2015 would aplly to you as well regarding your leave. As regards when you have to use Alternative Leave this will depend on your employment contract or company policy, either of which you would have to had agreed to. It is not uncommon for companies to say Alternative Leave must be used prior to taking any Annual Leave, but the day taken must be by mutual agreement.

      Suggest you give the Department of Labour a call or have a look at their website. http://www.dol.govt.nz


  3. If for example I had –
    AL outstanding: 0.00 hours
    AL accrued: 88.75 hours
    AL taken from accrued: 41.50 hours
    AL OWING: 46.85 hours

    What is the maximum entitlement of payout for when I leave the business??
    Have handed 2 x weeks notice.
    I don’t understand the figures above…
    Basically what am I entitled too as an employee??

    1. Hi Manawa,

      When it comes to a Termination Pay then the hours are not taken into account at all. The Termination Pay calculation is just 8% of your current years Gross Earnings less any leave in Advance you have received.


    1. Hi Eve,

      Assuming you are based in New Zealand then I would have to say there is some major issues with the payroll that your employer is using, so let me explain.

      Firstly, in our opinion, there is no basis under New Zealand legislation for any statutory leave (Annual, Sick, Alternative) to accrue in hours. Annual should be in Weeks or Days at least. So working with the hours, and assuming you work 8 hours a day, 5 days a week and you are entitled to 4 Weeeks leave per year then the problems I see are as follows:

      1. Having 892 Accrued Hours is impossible as based on the above assumptions the absolute maximum hours you can ever have under Accrued is 160 (40 hrs x 4 Wks) so the payroll is not transferring leave correctly from Accrued to Entitled on your anniversary. This needs to be fixed first as there is a difference in how Entitled and Accrued Leave are treated when Terminating.
      2. Taking the hours and dividing them by 8 we get 94 Days Entitled and 111.50 Accrued (total of 205.50 days) which must mean you have not taken any Annual Leave in 10.27 years (205.50 / 20) which sounds unbelievable but I guess you can confirm that.

      Anyway, the calculations on Termination would be as follows:
      1. All Entitled Leave must be paid at the Higher of your 52 Week Average or your Normal Pay – plus you gat an additional 8% (assuming 4 weeks leave per year) on top of that
      2. All Accrued leave hours are ignored and you are paid 8% of your Gross Earnings since your last Anniversary Date.

      You can find mre information here – Calculating Termination Pay

      1. Hi

        Hrs accrued but not entitled is 353.50
        Anniversay april 2018

        Lieu days entitled 6

        Hrs per week 168 24/7 care of disabled son

        How cum im not entifled to cash out any accrued

        1. The law does not allow you to cash up Accrued Annual Leave but by the looks of things your payroll is not splitting leave into entitled on your anniversary.

  4. Hi,

    I have just handed my 2 week notice into my current employer and was wanting to know how much I could expect on my final pay. I just want to make sure they pay me correctly as the have a tendency to be quite “dodgy” and I really don’t know what I’m doing when trying to calculate my final pay entitlement lol. So on my payslip it says:
    Outstanding Anual Leave: 16 hours
    Accruing Annual Leave: 103.89 hours
    Total Balance: 119.89 hours

    Alternative Days: 2
    Sick leave Days: 2

    I have been working there for over a year and a half and my hire date was the 20/01/2014.

    I saw you mentioned above that annual leave should be calculated in days not hours so this has added to my confusion haha plus maths has never been my strong point lol any advice would greatly appreciated.


    1. Hi Tyler,

      The best place for definitive answers for all payroll related questions is the Department of Labour, or now called the MBIE. Have a read of this article – http://www.dol.govt.nz/workplace/knowledgebase/item/1647 as it explains it well.

      In the termination pay you should get paid for all your Annual Leave and Alternative Leave but Sick Leave does not feature in Termination Pay.

      Re the leave in Hours, many companies do it but it is something we keep well away from as nothing in legislation to support it.


  5. Hi,
    My employer is frustrating the hell out of me to take leave. I have 16 days owing and have been asked to take time off as by the end of the month my leave days will be 18 and we are not allowed to accrue more than 15 days. I don’t mind taking time off! But to be constantly hounded seems ridiculous. Where do I stand on this matter?

    1. Hi Clinton,

      You will need to refer to your Employment Contract and/or Company Policy document to answer this or discuss with your employer.


  6. Just need clarification of AL entitlements

    Started work Jan 2014 – used 22days during that first year

    So i start jan 2015 with – 2 AL owing – i accrue 20 during that year but use another 22

    So i start jan 2016 with – 4days and no leave owing is that right or do i start with a new set of four weeks at jan 2016 minus the -4.

    So question do i start the year 2016 with -4 AL owing and have to accrue again or do istart with 16 days AL to use that year?

    1. Hi Nick,

      Most payrolls accrue leave from the day you start (called Accruals) and then on the anniversary of your start, it should transfer any remaining balance from Accrued to Outstanding or Entitled and starts accruing from zero again.

      This is repeated every year on your anniversary.


  7. Hi,

    My payslip shows my annual leave hours entitled-221 hours and hours accrued-228 hours.Does it mean I can use all of them like 221+228=449 hours.thanks

    1. Hi Hazel,

      That’s what the maths add up to but you need to discuss with your employer regarding what leave can be taken when.


  8. Hi, my boss is saying I have no leave to use but I don’t understand? Below is what is showing on my payslip. I would have thought I could take the total balance showing which is a positive not a negative?

    Tran Type Days Entitled/(Advanced) Days Accrued. Total Balance
    Annual Leave -6.96 13.40 6.49

    Thanking you

  9. Hi there, I am 5 months into my current role and at my acceptance of job meeting they accepted I had a pre-booked two week vacation. I was given leave in advance and I was paid this leave while I was away (2 weeks ago) I am now back at work and a new manager has approached me telling me I need to choose either a) not get paid this cycle as I have no annual leave or b) not get paid over the three week Christmas close down period as I wasn’t meant to be paid while I was away? Does this make sense? Any help appreciated

    1. Hi Penny,

      You should get arrangements in writing (e-mail etc) at the time as verbal agreements are hard to prove. Also you should read the Company Leave Policy regarding leave in advance.


  10. Hi

    I have been made redundant and finished on the 28th September. I am based in Hawkes Bay and I have 18.36 Days Annual Leave on my payslip. Judging from NZ government website I calculated that with the finishing date and the 18 days leave then technically my I would have finished on 24th October. The 21st October is Hawkes Bay anniversary and the 24th is Labour Day. I queried my former employer whether I would be compensated for these days in my final pay?

    The reply I got back was this:

    “That only applies to your accrued leave (leave from the previous year), which takes you to 18th October, before the public holidays”.

    Is this correctly legal? Clearly my payslip stated 18.36 days which I calculated from finishing 28th September until the 24th October.

    1. Hi there,

      Yes your employer is correct, only Entitled Leave is taken into account when looking forward from a termination date.


  11. Hi there, I have started in a new job doing to start to middle payroll for them, in my time there I have noticed they have been accruing leave by taking their 8% holiday pay from their contracted hourly rate, which is in breach of the agreement, they should be paying the contracted rate + 8% holiday, this as been going on for so long, any way what I wanted to ask is can the employer acrue a persons leave as a dollar amount instead of days/hours, the end side of payroll says that this is only for permanent employees which is not correct at all. Can you make any sence of why they think it is correct to do this for fixed termers? we need to acrrue as days incase we need to calculate leave days for shut down periods, if the employee asks to take A/L in Advance or if the employees employment ends.

    Would you agree??

    1. Hi there,

      An Employer can pay our your Leave each pay for Fixed Term Contracts of less than 12 months. Equally the law does state that for the first year of entitlement the accrual can be a percentage but this is very unusual. In our opinion, all leave should be accrued in Days to best meet the requirements of the Holidays Act.


  12. Hi,

    My partner is having disagreements with her past employer paying out the annual leave due after she resigned and worked her notice period.

    She has as follows:
    Holiday balance: -8.00 hours
    Advance Holiday Entitlement: 54.36 Hours
    YTD Ordinary Hours: 552.00

    Would this mean they should be paying her out for 46.36 hours based on the holiday balance off the advanced entitlement?


    Blake Elliott

    1. Hi Blake,

      No, Termination pay is a different calculation to normal leave payments. The caulcations is simply 8% of Gross Earnings, less any holiday pay Advanced. The units accrued are totally ignored, unless they realte to Entitled Leave.


  13. I have zero hours of outstanding leave and my start date of work was 31 may 2012, now it is 14 December 2016. Am i able to take advanced leave at my employers discretion?. Problem is the only show AL hours as zero and sick days on payslip and nothing else

    Outstanding 0
    Accrued ? There is no indication of any hours on payslip
    Advanced ?

    1. Hi Semaka,

      You are legally entitled to 4 Weeks Leave per year so to have nothing accrued is very strange. I would discuss this with your employer and if still not satisfied get in touch with the Labour Department.


  14. I am 2 months into a job and have found out that the employer takes hours from accrued annual leave to make the hours up to the contracted 85 per f/n if not here for the full 85, even if it’s only 1 hour he does it. I am on salary. I am not even out of my 3 months. I have told him that this is not to happen however he continues to do this. I had a sick day but there is nothing on the payslip showing any sick pay balance should that be on there.

    1. Hi there,

      What your employer is doing is not allowed at all under current legislation. I would advise you to put it in writing to them to stop immediatetly. If they persist then contact the Labour Department.

      It is at the Employer’s discretion what balances they elect to show on payslips. It is your right to request a copy of your Wage Record at anytime.


  15. Hi, I keep asking the same question, but keep on getting the same answer each year from my employer. Below is a copy of an email that I sent one year. Can you please confirm that I actually do have an ‘anniversary’ date? I commenced working for my employer on 10 October 2004. Below is the email:

    “Hi Karen,

    your leave balance doesn’t start from your anniversary with 25 days but builds up each year to 25 days on your anniversary. Currently you are only sitting around 6 days.

    This means that you will only have 13 days accrued by 18 December this year.

    You won’t have sufficient leave.”

    1. Hi Karen,

      everyone has an anniversary date be it their Original Start Date (and annualy thereafter) or a Company Anniversary Date. The notion of an Anniversary Date is that during the year, your Leave accrues upt to your contracted maximum (25 days by the sound of things). Once you reach your anniversary date you should have reached your full accrual (provided you have not taken any during the year) and on your anniversary date the Accrued Leave moves to Entitled Leave and your Accrual starts again at zero and builds up again to 25 days over the year.

      This is repetaed every year on the Anniversary Date.


  16. My wife has been doing part time work for 2 years.. however from March 2016 she doubled her hours (and pay) from $200/week to $400 a week. There is a forced shut down over Christmas and my wife took A/L. However when she was paid, she was only paid $300. I’ve read the DOL websites that state the amount paid is the greater of the avg wage earned last 12 months or the avg amount of last 4 weeks before pay period. This info suggests she should be getting the $400/week for her holidays? Thoughts?

    1. Hi John,

      Based on what you have said then the answre is yes, she should be paid the HIGHER OF her Normal Pay (if the normal cannot be determined then you use the 4 Week Avg) and her Avergae Pay (52 weeks). If she has been working at the $400 a week rate for some time then that is the New Normal.


  17. Hi,

    I have had my hours cut by 9 hours per week as well as my hourly rate. I had 315 hours aAL outstanding units on my last payslip with full hours. On my new payslip with my new hours it has reduced to 245.2 on my new hours. Can my employer reduce my AL hours that I have already accrued.


    1. Hi Shirene,

      As a rule No, but depending on what payroll they are using it may have done it automatically as it does not lock in the hours at the point your contract conditions have changed.

      I suggest you dsicuss this with your employer and ask that the original hours be reset (and locked in), before changing the way the payroll is setup.


  18. Hi there, hubby’s payslip says
    Annual leave O/S : 25.79
    Accrued leave : 89.23
    Annual leave Total : 115.02
    Sick leave: 96

    I thought you couldn’t have a figure in both sections at same time. Why would the hours not be rounded to a whole figure.


    1. The accrued leave is a constanly moving item as each week he works it increases by a small amount upt to his anniversary year when it gets transferred to Entitled Leave.

      It is standard to have leave split between Entitled and Accrued


  19. Hello
    15/03/17 makes me 6 years with the company I work for. My leave Entitledment is as follows.
    Outstanding 0.00 Accrued 16.05 Advanced 7.23. Balance 8.82
    My understanding is my outstanding will change in March is that correct

    1. Hi Robyn,

      That is correct, once you reach your Anniversary Date – 15/03/2017, the balance in Accrued will shift to Entitled (outstanding) and the Accrual will start at zero again.


  20. Hi there, this is an interesting column, question-question answer type forum. I am hoping to get a hourly
    payrise within the next few days, but will probably leave within the next few months – my question is
    will my annual leave entitlements – 90hours, be paid at my new hourly rate – when I leave, OR my old
    hourly rate they were accrued in?

    1. Hi there,

      The law stipulates that any annual leave you take whilst still employed mist be paid at the Higher of your Ordinary Pay or your 52 Week Average so Ordinary will be based on your new rate.

      Termination Pay is a different calculation.

  21. Hello

    My last payslip before my final pay says I have 16 days accrued – 7. days advanced and 8.87 balance but on my final payslip has nothing to do with this figures and paid me with the days I have worked for my last week only. They told me there’s no payout since they are only accrued annuals and not actual days. Is that right, that I cant get anything? Thanks

    1. Hi there,

      By the sounds of it this is not correct, you are entitled to 8% of your Gross Earnings less any holiday pay already paid. On termination the accrued days are ignored but you are certainly entiled to a Holiday Pay payout on the dollars earned.

      I suggest you discuss this with your employer again and refer them to the Labour Department website for aclification.

  22. Hi ,I am very much surprised for my first time working for a company that does not pay me a leave pay(13th cheque) ,so I just want to know that is it Right for a mine not to pay leave pay or 13th cheque, or maybe the employer is robbing us?
    Where must I ask ?
    Any information is appreciated.

    Thank you.

    1. There is no such thing as a 13th pay in New Zealand, do you come from Switzerland?

      Everyone is entitled to be paid Holiday Pay in New Zealand, first step is review your Contract, then discuss with your Employer and if not happy with their answer get in touch with the Department of Labour, now called MBIE.

  23. Hi ya,

    A tad confused, I had handed in my 4wks notice my balance is 110.90 and accured is 142.90, so does this mean my final pay will only be the balance of 110.90 and accured is not paid? I leave couple weeks before my anniversary zzz didn’t really think resignation out lol.

    1. No, you will be paid your Entitled balance of (110.9 I assume) at the higher of your Ordinary Pay and 52 Week rate, plus 8% of your current year earnings (the accrued hours are ignored on termination but you get the value of those hours as 8% of gross)

  24. Hi there
    My last pay slip says I have
    Annual leave entitled -83.00
    Annual leave accrued 118.43
    Sick leave -0.03

    What does the negative sign mean? How do I work out how many hours I have left of annual leave from these two figures?

    1. It will be 118.43 minus 83 (I assume these are hours taken in Advance) so 35.43.

      The Ezypay Team

  25. Hi all – so much confusion around something that is in actual fact very simple and has been law since 1 April 2004 (and amended April 2007 for 4 weeks leave).

    The Holidays Act stipulates that annual leave accrues 4 weeks for each year of service (not days, not hours, not $ and not as-you-go – these methods must all be regarded as estimates only as they do not comply with the fundamental principles of the Act).

    Even if your agreement stipulates an alternative method of accrual deemed to be what a “week” represents (and I’ve never seen one that implements an alternative method of accrual that meets the requirements of the Act) you are still entitled to be paid at least what the Act would produce.

    In all cases it can easily be demonstrated that employees paid using such systems are underpaid for their leave entitlements, both at the time they are paid during service and when they terminate. This is the primary cause for the huge annual leave underpayment (and daily leave types as well) ballooning to an estimated (MBIE) tune of $2 billion.

    There would be no problem with balances etc if the payroll’s being used complied with the Act. An employee’s “hours” would not have reduced when they switched roles – they would have retained their termination value and eligibility for time off regardless, though the value of any time off will diminish over time (the 52-week average falls over 52 weeks to the equivalent of the new ordinary weekly earnings).

    It’s no wonder people are confused – there’s a law in place to protect employees’ entitlements and payments, yet the law continues to be blatantly disregaded by all but a few payroll systems.

    I’m not here to advertise our payroll (I develop payroll for a living), merely pointing out the futility of continuing to express annual leave values in terms of hours and days – they mean nothing under the Act and the constant recalculation of averages etc is so complex (and generally incorrect) that it’s no wonder everyone is confused. If your payroll expresses balances in these terms then it does not comply with the Holidays Act.

  26. Can I use my holiday pay or alternative holiday pay for the 2 days I was off? Cause i have no sick days left. Can my manager decline me from having my holiday pay?

    1. You will need to refer to your Employment Contract or Payroll Policy re this.

      The Ezypay Team

  27. Hi
    On my last payslip it says that I have 178 hrs. I have been at my job for 2 years and taken a total of 113.5 hrs annual leave since starting. Our payroll clerk is telling me I only have 55 hrs avaliable to me, is this correct or am I owed the 178 hrs? I work a full 40hr week

    1. Hi Kelly,

      Well based on my maths 178 less 113.5 = 64.5 so I would be asking your employer how they get to 55 hours.


  28. Hi all, i have been on a part time (20 hrs a week) contract for last two years , but from june 2016 ,i have been working full time. Now i want to leave the job but all my annual leave for last two years have been calculated according to the part time contract. So i have a total 160 hrs of annual leave for last two years and it has always been on my payslip regularly. Should i be getting paid more considering i was working full time for last 10 months? totally CONFUSED!

    1. Hi Sam,

      From June 2016 your leave accruals should have been adjusted to reflect your new full time role, and inf fact, according to the Holidays Act, any outstanding leave (especially when the accruals are in hours) must be adjusted to refelct your current position so on the face of it the accruals look wrong. Ask your employer for a full breakdown of your accruals.


  29. I worked a full year anniversary rolled around end of January, by the way have been there 19 years and my hours were accrued to 259 hours, I reduced my hours to 23 hrs a week from 32 hours in April 2017 and they have reduced my accrued hours by 73 hours can they do this, when I questioned this they said they pay more than my pay rate when I take leave per hr but it still doesn’t make up for the hours I’ve lost

    1. Hi Marilyn,

      It would be very improper for an Employer to reduce your leave accruals without sitting down with you first and discussing why they are doing so. I would suggest you request such a meeting with them and to have a follow up letter outlining what was discussed and the agreed outcome.


  30. The replies in this content is amazing and really helpful! Ive known some who have the same problems with you. Im glad they were able to help you out.

  31. Hi,
    I have handed in my 2 weeks notice to my current job but my job requires 4 weeks notice as it is monthly salary I was on, In my final pay they have only paid me my annual leave and no weeks I’ve worked for the month? I’ve been there for about 8 months just trying to understand if they have ripped me off

    1. Hi Javann,

      You will need to refer to your Employment Contract as to what it states in relation to a reduced Notice Period.

      The Ezypay Team

  32. Hi, I have 0.92 days out standing and 6.68 accrued so balance is 7.60. I handed in my two weeks notice.. just wondering what my final pay should have included. Hope someone can help! They only payed me my weeks work and 0.92 days outstanding. Whats the 6.68 days for?

    1. Hi Shilo,

      That does not sound correct. You should be paid the .92 days at the greater of your Ordinary Pay or 52 Week Average, plus 8% of your gross earnings since your last anniversary (what the 6.68 days relates to in days) plus your weeks work plus 8% on your weeks earnings.

      See this link – Calculating Termination Pay

  33. Hi there. So on my payslip it shows. Available entitlement=annual leave 84hrs.
    Accrued entitlement=annual leave 43.74hrs.
    I’ve been with my job for 17 months (started nov 2015) and have never taken annual leave. From the figures above, please correct me but in my head I’m thinking 84hrs is from nov 2015-nov 2016 =84 and 43.74hrs is what I’ve gained so far since nov 2016-1 June 2017? Is this correct? My boss confuses me and tells me that I can only take 43.74hrs of leave and deduct off the 84 which would leave me with 40.26 till my next anniversary. I’m wanting to know who is right as I feel like I’m being confused by my boss himself as I’m abit young. Thank you

    1. Hi Shandie,

      The law states that you are entitled to 4 Weeks Annual leave per year. A week been what you would normally work the period before you take the leave. You must also be allowed at least 2 uninterrupted weeks leave if you request it.

      On the face of what you say it seems you have 84 Hrs entitled leave to take and the Accrued leave will become Entitled leave on the anniversary of when you started.

      Have a read of this – Minimum Employee Rights and don’t be scared to call MBIE for advise as well.

      There is heaps of information on the above website.


  34. Hello I’m wondering if anyone can help, I recently left my job and I was told I would be paid any outstanding annual leave I didn’t take from April which was around 2 weeks. On my payslip it has ‘historical annual leave’ as -£95? So my wage was cut by almost £100. I asked them about this thinking it must be an error and they replied ‘This is what you would have overtaken to the date when you left you have to work to accrue your full entitlement.’ What does that mean?? I didn’t know they could take away money. Thanks in advance

    1. Hi Rebecca,

      As you are talking in pounds, we have no idea what the legal requirements are in the UK. I would suggest if are unhappy with their answer, ask for greater clarity.

      The Ezypay Team

  35. Hi

    I have 30days annual leave owing to me. I have been employed for almost 3 years and my 3rd year falls on the day I leave (last day)

    Started 23/06/2014 / Last day 23/06/2017

    What will my final pay consist of??

    1. Hi Tania,

      It will consist of all Outstanding/Entitled Leave been paid at the Higher of your Normal Pay or 52 Week Average, plus 8% All Accrued leave will be paid at 8% of Gross Earnings for the current year.

      The Ezypay Team

  36. PAYSLIP_20170703_4YI0JYE89.PDF
    Hi this is my payslip
    Can u help me to understand how many holidays I have got

    Cheers atish

  37. hi there
    re final pay leaving company

    i have accrued leave hrs 64 ( as 8 days)
    and annual leave not taken balance as 45 hrs (5.62 days)

    please advise final pay entitlement
    is it 8 days + 5.62 days =16.62 days final payout

    1. Hi Mukesh,

      Assuming the 5.62 days is Entitled Leave, this should be paid at the higher of your normal pay and 52 week average, plus an additional 8% on top of that. The 8 days of accrued leave are ignored on termination and you are paid 8% of your gross earnings for the current leave year.

      The Ezypay Team

  38. Hi there,

    I am confused, on the payslip it says the following date for the period of 19/6/17- 30/6/2017 and Pay Day: 30/6/2017.

    Then it says the information below regarding annual leave. I was told the I only have 4 day owing not 42. It is probably as simple as that. However I am planning my maternity leave and now I need to rethink my situation.

    Annual Leave Accrued (days) 42
    Annual Leave Balance (days) 4

    I am confused. Please help!

    1. Hi Zania,

      I think what it is saying is you have 4 Days of Entitled Annual Leave and there are 42 Days Accruing (this seems crazy high btw), in fact not sure how you could have 42 accruing as on the anniversary of your start date each year, your Accruing Leave should transfer to Entitled Leave, but this has possibly not been happening.

      I would ask if your leave has rolled over from accruing to entitled each year.

      Word of advise, it is in your interest to take as much of your Annual leave as possible before commencing the Government Parental Leave payments as your leave is worth more now than it will be later.

      The Ezypay Team

  39. Dear Sir / Madam

    My query is simple yet I do not know if this is right concerning my accrued annual leave,

    Before July 1st, I had accrued hours of 158
    My anniversary date turns over 21/7/17, I have been with the same employer for 9 years

    On my first pay sheet with my NEW rate, my accrued annual leave went to 139

    On asking my employer why has this happened, since I haven’t used any annual leave, she replied, “now that your on a new rate of 21 per hour, your accrued leave decreases, yet it’s monetary value is more”

    Is this right? Quite frankly i don’t know why my accrued annual leave was even touched.

    Please can you give me some understanding, I work really hard to accumulate these hours, and to lose such a hefty figure although to some it may seem small, means alot so it’s only me wanting a resolving of mind.


    Ms A Stevens

    Care worker / Resthome

    Look forward to your answer

    1. Hi Amber,

      Well that is not one I have heard before. I can see no reason why your Balance would be affected by an hourly rate change as this should only affect the value of the leave. I would request further information as what is happening here does not make any sense at all.

      Sit down with your employer and ask them to explain their answer and ask them how that relates to the Holidays Act.

      The Ezypay Team

  40. Hi,
    I started with a company in Feb 2016, I have used 5 days sick and also used 20 days paid leave. Can you tell me when i would start acrue holidays again, and how do i work this out – I only work 25 hours a week now .. Thanks

    1. Hi Kay,

      You become entitled to Annual Leave every year on the anniversary of your Start Date, so Feb 2017, 18, 19 etc.

      With Sick (assuming minimum terms) you get 5 Days after Six Months – August 2017 and then annually thereafter from the August Date, but check your contract for any variations on this.

      The Ezypay Team

  41. Hi how are you?

    I have a couple of questions regarding holiday accrual. The company I work for have contracts where the work schedule is set out for 40 hours per week but during peak season guys can work more than this. Some months people will work 180+ while others they may only work 130 as there isn’t priority work. All of these months are still accruing at a full time rate of approx 13.5 hours regardless of hours worked. Is there a true way to figure out exactly what the guys holidays would be if they are not working 40 every week? Can you use an average of all hours worked for the year?

    Also is it a case if they have worked an average of at least 40, or more, per week for the year do they receive the 4 weeks but each week would then be a higher value as their average is above 40? Can you use an average amount of hours and accrue more than the 4 weeks if that is the agreed upon method?

    Thanks in advance for any info you can pass on

    1. Hi Gregory,

      It’s common for companies to accrue leave based on Contracted Days, eg you will work Mon to Fri so therefore 5 days a week (we recommend leave is always accrued in weeks or days, never hours). However, if the situation has changed significantly that staff are now working greater than 5 days a week, then their accrual must reflect this so possibly greater leave units should be tracked.

      If, as you say, greater hours are worked pay period, but the accruals are fixed, then the rate paid for an Annual Leave day will, and should be highly inflated compared to their normal rate. In addition, when paying for Stats, Sick, Ber etc you should be paying based on what the current normal day is, not what is stated in any contract.

      The Ezypay Team

  42. In a termination situation If the entitled leave balance is overdrawn. Due you calculate negative 8% annual leave on this (as well as of course deducting the value of this leave paid out in advance) from pay owing to the employee.
    I ask as see that if the employee has an entitled balance in a remaining amount they get an extra 8% added.

    1. Hi Mike,

      Not sure how Entitled Leave becomes overdrawn as if there is insufficient at the payment date then it would reduce the accrued leave. So to answer your question (I think), yes any overdrawn Holdiday PAy will reduce the final amount paid out on termination. No you would not calculate a negative 8% as in theory there is no Entitled Leave at Termination.

      The Ezypay Team

  43. Hi, I am leaving my current employer in 4 weeks time. I have no annual leave and my anniversary is 11 days before I leave. Am I still entitled to some annual leave? Maybe accumulated unseen annual leave? Thanks.

    1. Hi there,

      On your Anniversary Date you will be entitled to Annual Leave (perhaps the Accrued Leave is not shown but you can ask what the value of that is currently). As the leave will flow from Accrued to Entitled on your Anniversary and you are then terminating, you will also be entitled to 8% on top of the Entitled value.

      The Ezypay Team

  44. Hi there I have a situation at work where I have accrued 57.61 hours and have 2 alt days. I’m going on holiday which has been agreed by both parties I’m employed on a .4 part-time contract but work between 80 to 90 hours a fortnight picking up casual shifts.
    They are now saying because I work more shifts casual than my .4 part-time they won’t pay me both alt days and my accrued leave only 25 hours of it.
    I feel confused do can they do that or do they have to pay me the 2 alt days and 32 hours of accrued leave to cover my 6 days of holidays I’m on?

    1. Hi Brent,

      In our view, what your employer is attempting to do is really unethical (worth checking the legality of it as well). Essentially what has happened is that your were originally employed on a .4 contract which maybe 3 hours a day (as an example). Due to work conditions you have been working around 8 hours a day etc. You applied for leave in good faith, it was agreed etc but now that the employer has done the sums they are baulking as they now have to pay you at a much higher per day rate. Essentially all the extra hours you have been doing have been feeding into your Annual Leave rate, and any Alternative Leave paid must be based on the hours you are currently working.

      I believe what your employer is attempting to do is minimize their cost by only allowing you now to take reduced units of leave so they only have to pay based on a 3 hour day and not an 8 hour day. We had a similar situation with a client of ours, the employee was contracted (and did) 2 hours per day during the year, but over Christmas they worked on some projects so they were working fulltime, 8 hours a day. When it came time to pay the Stats and Public Holiday the client only wanted to pay based on a 2 Hour Day (same for Annual Leave) which we would not allow as in total breach of the Holiday Pays Act. In the end they backed down, paid the employee correctly, this is what I believe your employer is attempting to do and I would stick to your guns and request the original agreed leave stands, as there is no basis for them to do what they are trying to do.

      Again, Annual leave should not be accrued in hours for part-time variable employees, it just does not work effectively.

      Good Luck
      The Ezypay Team

  45. My pay slip shows annual leave accrued 50.65 and total annual leave 50.65 and as i am leaving the job and have given 4 weeks notice .
    so what i am liable for till now

  46. My workplace has a ‘relief line’ that covers peers AL’s and sick. We work shift work & when not required to cover our manager expects us to work day shifts, these day shifts are valued less hours than shift work and management are now looking to claim back ‘hours owed’ from the previous tax year, are they entitled to do so?

  47. Hi there the cleaning company I work for is pulling the contract of the centre I clean for so will be finishing with them. My payslip says AL entitlement 51.15 h and accrued 22.72 h what am or should i expect to see in my final pay I’m totally confused please help thank you

  48. Hi there,

    Just found out your site here and lm curious about it coz it’s related to my situation now.
    Here is my problem l already resigned from my company but I’ve got small amount from my final pay.
    Can give me an explanation on how to calculate;
    Annual Entitlement (-39.98)
    Accrued Leave (113.96)
    I’ve got $29 per hour
    Hopefully you can give an idea in regards to this matter.

    Best regards

  49. Hello.

    I’ve been with the company 16 months (02/05/2016).
    They have a shut down period over Christmas which is from Christmas to just after New Year, works out to approx 2 weeks, with stat days in the mix.
    They have a date of 1 December were employees leave is deemed redeemable, so if you start before December you’re not entitled to leave, but leave in advance.
    At the anniversary of my employment 02/05/2017 i wanted to take leave, but i wasn’t allowed to as i hadn’t reached my December anniversary date.
    I was told i had to work till December 2017 to be entitled to leave.
    I’ve accrued to date 15 working days (I was allowed a few days over the ‘shut” paid leave)

    Are they entitled to not pay me for any leave I take now, as I’ve not reached “their” leave period?

    Also, if i resign now, will i be paid out my 3 weeks “accrued” leave, even though i’ve been working here for over a year?

    Many thanks


  50. Hi, i am employed through the Danish Ministry but on a local New Zealand contract. The office here in NZ is closing Down end of the year. I have been on a 2 year contract.
    I have 22days of leave owing. My employer want me to take the leave prior to finishing up. This they can require through Danish law. But since i am on a local NZ contract, I am of the understanding that they must pay out all leave owing?

    My contract is a basic NZ contrac referrering to the NZ Holiday Act 2003 and it states nothing about employers right to request leave taken prior to finishing up the role.

    Also, the contract finishes 31.12.2017.
    Am i entitled to be paid out for the the public Holidays on the 1st and 2nd of January also?

    thansk a lot

  51. Hi

    I am on salary and have not used any anual leave in approx 5 years, i am about to end my employment with the company. Am i entiltled to to be paid out for all my unused anual leave?

  52. Hello,
    My partner has worked at the same job for 19 years and has only ever taken 2 weeks holiday a year. Now that he is leaving can he claim for untaken holidays from all those years ago?
    Thank you Megan

  53. Hi Justin,

    My Employers sold their business and all staff were paid out, I was paid my “Available Entitlement=Annual Leave:40hr”
    But my last payslip still says ” Accrued Balance=Annual Leave: 28.96hr.” Just querying what this is please?



  54. Hi there.
    I am having a huge amount of trouble with getting my work to show me which days I am entitled to for holiday leave.
    It seems they have not been keeping track much.

    on my pay slip it says

    Alt Holiday hours accrued 0.oo Used 0.00 balance -54
    Annual Leave Hours 0.000 used 0.00 balance -189.00

    I cannot really understand this.

    I was under the impression that I work a year get 4 weeks. Use those 4 weeks in that and receive another 4 at the end of it. So forth and so on.

    My employer says I have taken 22 days this year so wouldn’t this mean t the end of this year I am entitled to another 4 weeks? If this is so do I have to wait to the anniversary of my employment to be entitled to them or do they accrue during the year etc.

    Any help apprecited thank you

  55. Christmas is coming up and I just started working with this company 2 months ago. I have accrued 27 hours but I am obviously not entitled to them until the year rolls over.
    Most of my holidays will be unpaid because I haven’t accrued anything – all have is stat days and was wondering if I am entitled to use that leave in advance – do I have to ask for this to happen or will it just happen because I don’t have a choice in working over this period of time?
    Hopefully I do get paid out what I have accrued to make up for 1 week of holiday atleast.

    1. Hi Bris,

      Always approach your employer with questions like this. They can pay leave in advance at their discretion.


  56. Hi,
    In many comments you said that AL should not be accrued in hours, even in part-time work. Someone else commented that the balance should be in weeks accordingly to the Holiday Act. In that case, how you reflect the balance of AL accrued and AL entitled in the payslip since you have to state proportions of the weeks accrued/entitled?
    Also, that means that, regardless working full-time or part-time, you will always be entitled to the same 4 weeks on each anniversary date?
    Besides, how do you calculate holiday pay when there were AL taken in advance as the company closes for the Christmas/New year’s break and my anniversary date will be in 6th March 2018? The company is taking money away from my pay in concept of AL in advance instead of just adjusting the balance (AL accrued minus AL in advance) in the payslip. So I am being paid lots less in these 2 weeks of break. Is that the correct way of doing it?

    Thanks for your help.

  57. Hi there 🙂
    Do accrued annual leave hours not get paid out on termination of employment? My role was recently disestablished and I had 65hrs accrued at the time but was never paid it. Do I only get paid 8% of it? Sorry I’ve have been reading previous comments but I’m still confused. My work collegue who had the same role as me was paid her accrued hours. Thanks 🙂

  58. Hi there, Help me out please? Can an employee use the cash up for holiday pay using his accrued days or does the employee need to have his full allocation of 20days before he can cash up the 5 days.
    Also whats the miniumum amount of hoidays the employee must have off together, instead of taking one day off at a time?
    Many thanks

    1. It can only be from Entitled Leave, not accrued.

      An employee van request at least 2 weeks of un-interrupted leave but other than that it is up to your Payroll Policy to state any other minimum.

  59. Hi , I work for a private hospital that mainly operates from Mon to Fri. But in the last 2 years there has been a shift and we are often open till Saturday morning with the occasional full weekend. The employer states that any hrs worked from midnight Fri till midnight Sun are to be considered overtime and will therefor not accrue any annual leave. Most of the nurses here work flexible contracts and hrs worked per week can vary.
    Are they right in saying that although staff gets rostered every week to work the Fri night and Sat morning is overtime? Isn’t it that a pattern of work that makes it regular hrs?
    They say they will calculate the hrs accrued on our anniversary and if short on 5 weeks (we get 5 due to shift work) they will top this up.
    How does it work when my contract says 16-32 hrs a week, do they need to calculate on my average hrs per week over the yr? Not just over the minimum of 16? What if I mainly work 3 days a week, but sometimes that 3rd day is in a weekend and I will therefor miss out on hrs accrued? I am coming here with my question as they are very set in their answers and not seeing our point of view

    1. Hi Mieke,

      The law says you are entitled to a Minimum of 4 weeks leave a year (you get 5) and it requires that a week is determined at the time you take leave.

      In your situation it would not be uncommon to have non scheduled work to not accrue to leave hours but the dollars will accrue to your leave value so a days Annual leave should be higher than a normal days work.

      If it is Regular work then it should accrue time as well but it will be up to your employer to define ‘regular’ and apply that rule to everyone.

      Hope that helps.

  60. HI there

    I am resigning from my current job , in regards with annual leave pay out , i have 68 hours entitled and 189 hours accrual, with a total of 257 hours. Will i be getting paid out the full total ?

    kind regards

  61. I gave notice and worked out my 2 weeks leave.

    My payslip usually comes via mail, when I hadn’t received it 2 weeks after leaving I requested a copy be emailed to me. This arrived on checking it my net late was not the same as what went to my bank.

    Theee days later with mail redirection my original final payslip arrived , all dollar figures and payment dates etc exactly the same but my annual leave hours had changed.

    Yet both slip have printed dates, period dates and payment dates.

    I believe something is seriously wrong here as I checked my payslip from the fortnight before and my annual leave hours were the same there as per the slip I received in the mail.

    I am unsure if I should approach the employer as we are already in mediation with ERA due to a pay rise that was never implemented.

    Can you advise please – does this seem incorrect.

    I had 28 hours actual then the next one says I owe 76 hours. I worked that fortnight and never took time off.

    Many thanks Tim

  62. Hi Justin,
    I have a couple of questions for you:
    1) Can an employee cash out more than 1 week leave per year if both the employer and employee agree to it?
    2) Can an employer set accrual limits on annual per year? ie A maximum of 6 weeks can be accrued at any point, after which the employee must take annual leave to bring is back under 6 weeks.

    1. Hi Jim,

      In response to your questions.

      1. No, and if they fail to take their full Cash Out entitlements from previous years they are lost.
      2. You can have a Payroll Policy with terms as you describe. Just need to ensure you maintain the Employee’s minimum 4 Weeks of Entitled Leave.

      The Ezypay Team

  63. Hello Justin. I write in desperation since the only reference to ‘cashing up’ in nz terms is limited to 5 days. Have worked for a company for many years and recently found error in accrual rates for my holidays going back several years. this has now been remedied but the number of days holiday I now have owing to me present a problem in that we are apparently only allowed to cash up 5 days per year…I now have 24 extra days accrued that I didn’t know I had (on top of 18 days I have yet to take this year) due to the aforementioned error. Am I entitled to request the company cash all these ‘extra’ days up for me since I had no opportunity to do so previously since I didn’t know the hols weren’t accruing correctly??? Just FYI I am on salary and work a simple 40 hour week. Looking forward to hearing from you. Thanks Justin

  64. Hi there what does it mean if my payslip has annual leave taken in advance? It says annual leave O/S last year 0.00, annual accrued this year 19.50, annual taken in advance 13.15, annual leave total 6.35. Ive been at the job 5 years and take all my leave at the start of each year but i only take whats owed to me. I havnt taken any leave in advance.


  65. Good day

    I have resigned from my work on 3 years it shows on my pay slip I have 45 leave days but yesterday when I phoned HR they told me I only have 2. How must I go about it?

    Best of wishes
    Stefan Scheepers

  66. Hi

    I have an outstanding balance of 34 days entitled AL upon my last day at the company. I gave them twice the contracted notification period to help find my replacement.

    My last pay check has no AL paid out just my salary for the last month worked. Am I right in thinking by law this should have been paid out in my last pay check and therefore they are in breech of contract?

    What are the next steps for me to get my entitled 34 days paid out?


    1. HI Oliver,

      Yes all Annual leave must be paid out on Termination, plus Alternative Leave and any Public Holidays that fall within the balance of your Entitled Annual Leave.


  67. Hi,
    I am considering leaving my job 3 months before my 1 year anniversary. I have been using accrued leave in advance to cover sick days.
    My payslip currently reads – annual leave accrued this year: 12.5days. Annual leave taken in advance:12.5 days. So I am basically taking my annual leave as I earn it.
    When I leave my job within 1 year, obviously I will not be paid out any leave. But will I owe the company anything? Due to something to do with only being entitled to 8% of my leave if i leave within a year? I have no idea.
    Thank you for your time.

    1. Hi Ruby,

      In the situation you describe, where you are taking all your accrued leave progressively, it can happen that on termination you will owe your Employer something. This results from the fact there are different calculations for Leave as you take it and Termination Pay.


  68. Hey Justin.
    If I were to Leave with 151hrs of Annual leave (Outstanding)
    ,36hrs Accrued Leave and a last pay of 800 and a monthly gross income of 4290$

    Would my calculations be correct for my Lump sum payment?

    as follows

    151x 24.75 = 3737.25$
    Been 4 months since my anniversary, so the gross would be 4290x 4 = 17160 and 8% of that would be 1372.8$
    and last Payment of 800

    So my total gross Payout would be around 5910.05 $

    3737.25 From Outstanding Annual Leave
    1372.8 From Accrued Leave
    and 800 for Final hours worked.

    Thanks very much.

  69. Hiya Justin

    My anniversary date is the 3rd of November. At this stage, I was doing 3 rostered days per week. In March I dropped down to 2 rostered days per week, and am now doing 1 rostered day a week.

    Last week my timesheet was showing 16.5 days annual leave and this week’s timesheet is showing 13.5 days annual leave. The person in charge of our payroll said it is because the annual leave was “accrued” and not actually earned… is this correct?

    Thanks for your time 🙂

    1. Hmmm, not sure that is the right answer but the current thinking from MBIE is that when determining your 4 weeks leave, it must be done at the point you take leave so the fact you reduced from 3 Rostered Days per week to 1 would mean your current leave entitlement is 4 weeks of 1 day. Best to try and take some of that balance as soon as possible.

  70. Under Vacation Clause:
    1. Employee will be provided 30 days leave per year
    2. The leave will accrue from year to year
    3. On Closure of the contract period, the remaining vacation entitlement will be calculated on pro rata basis to the closure date and paid to the employee
    Can anyone help on the above points, as I finish one year with organisation and have taken overall 5 days off only (means I still have 25 days of balance leave which I am entitled based on my contract), can these balance leave be carry forward to next year and accumalate???

  71. Hi I have a bit of confusion.
    On my pay slip from last week I had 112.18hrs of leave outstanding and 76.33 hrs of accrued leave.
    This week it has changed to 87.25hrs of leave outstanding and 60.98hrs of accrued leave??? I haven’t taken any leave between this week and last week. I went to our payroll admin and she said it was because I changed my hours of work from 27hrs to 21hrs a week?? How would this change my outstanding and accruing leave?? (My pay rate per hour has not changed). If you can enlighten me that would be great, as is does not make sense.

    1. Hi Sarah,

      It is one of the crazy ideas that MBIE are putting out at the moment in that one must always determine 4 Weeks Leave as it applies today, not how it applied two weeks ago or 6 months ago so by changing hours down the hours reduce and you miss out on time but you should still not miss out on $.

      The problem in your case is exaggerated by the fact your accruals are in Hours (something we feel strongly against for this very example), whereas if leave was accruing in Days or Weeks you would not have seen any change.

      I would ask your Payroll Officer to show you the workings on the basis what was the leave worth before and after the change in hours. You dollars should still be taken into account with the lesser hours.

      If you plan on reducing hours again, take your leave first, or suggest they accrue leave based on Days Paid and not Hours.

    1. The Termination Pay should be as follows:

      31.05 Entitled Days paid at the higher of your Ordinary Earnings or 52 Weeks Earnings, plus 8% on top
      8% of Gross Earnings since your Last Anniversary Date (Accrued Days are ignored)
      Any worked hours plus 8% on top.


  72. Hi,
    Just looking for clarification as I’ve been given multiple conflicting answers.
    Is accrued leave taken into account when calculating final pay?
    Entitled leave = 51.05 days (408.43 Hours)
    Accrued Leave = 17.85 days (142.76 Hours)
    Leave Taken = 21 days (168 Hours)
    Total Leave = 47.9 days (383.19 Hours)
    Employer has paid out 47.9 days annual leave but no holiday pay.
    Should the accrued leave be disregarded as it hasn’t fallen due? (Termination ended prior to anniversary).
    Any advice would be appreciated.

    1. The Termination Pay should be as follows:

      31.05 Entitled Days paid at the higher of your Ordinary Earnings or 52 Weeks Earnings, plus 8% on top
      8% of Gross Earnings since your Last Anniversary Date (Accrued Days are ignored)
      Any worked hours plus 8% on top.


  73. Hi there ,

    On our payslips it sates



    i am still confused as to what ANNUAL LEAVE ACCURED IN ADAVANCE actually means & my next payslip shows that i have (where my anniversary has started again)

    ANNUAL LEAVE AVAILABLE : 73.93 hours .

    Can you please help me and explain this ? Thank you

    1. Annual Leave Accrued in Advance will be the accrual that happens within the Current Anniversary Year. Once you reach the Anniversary of when you started, it will be transferred to Entitled Leave and starts accruing again from Zero.

  74. Hi, dear Justin
    I have been working in a new restaurant for six months.40hours per week. On my payslips, I saw my available entitlement annual leave is still 0 hour, sick leave 5 days, accrued balance is 70.4 hours. Are they corrected?
    For the entitlement annual leave should I need to wait for a year after, if I can get more than 160hours in accrued balance, then my payroll will take over those 160hours into the available entitlement annual leave, and the accrued balance turns to 0 right?
    I am also wondering aften a year, if my accrued balance starts counting again, will the available entitlement for annual leave change with the accrued balance all the time? Or which is only changed once a year on my anniversary day?
    Because I am new to working in NZ, sorry to send you many questions here. Hope to hear from u soon.
    Thanks a lot.

    1. You don’t generate Entitled Leave until after 12 months from your Anniversary Date (based on when you started). At that point each year, Accrued Leave converts to Zero again.

  75. Hi,
    I resigned on 30th August 2019 ( HR system was showing accrued leave as 17.49 days roughly) with a notice period finishing on 30 September. And on the payroll system, it was showing that I will have 19.16 days of leave on 30th September, which was to be my last day at work.
    So i applied for annual holiday leave from 3-sept till 30-sept and it got APPROVED.
    My employment anniversary is 1st October.
    Do I get paid for only 17.49 annual holidays or for 19.16 days that the system had calculated in advance..

    Thanks 🙂

    1. Accrued units are ignored on Termination. Entitled units will be paid out at the Higher of Ordinary or your 52 Weeks rate. Accrued is simply 8% of Gross less any leave taken.

      But, any leave you take before your Termination date, the grtoss amounts feeds back into the Gross Calculation on Termnation so you end up with a few more dollars.

  76. Hi,
    A friend is working fulltime, 40 hours per week and has 10 days (80 hours) annual Leave available balance.

    He is looking at changing to working half time, 2o hours per week. Will he still have 80 hours to use as leave which would be 20 days on his new roster, or will it be changeed to 40 hours as 10 shorter days?


    1. The current thinking by MBIE is the units will reduce. My suggestion is he takes (or Cashes Up) as much leave as possible.

      Some companies don’t reduce the entitlement, some do.

  77. hi Justin,
    Just want any clarification on the following issues for the final pay:
    -He started last May 30, 2019
    -He resigned last Oct 26, 2019
    -His current balance part-year estimate: 61.54 hrs.
    Now my question is, how can it be computed/calculated for his 61.54 hrs on his final pay?
    Can you explain it to me on how to do it..thanks…

    1. This one is very easy, as he is within his current year all the Units (Days or Hours) are ignored and the calculation is simply 8% of Gross Liable Earnings less any Holiday Pay he has already received.

      All accrued units are ignored on Termination.

  78. Hi im just wanting the tools could you help me calculate my holiday pay how do i do this x what figures etc please just want to see how much id get ive alreafy taken 5 days paid leave already i started this year on jan the 8th finished on the 20th of December regards

    1. Hi Brandon, as you are not working a whole year, your Leave will not be based on Days when you terminate. The calculation will be a $ figure only based on 8% of your Gross Earnings, less the $ value of any holiday pay you have alread received.

  79. Hi Justin,
    I just want to ask, can an employee get his current balance part-year estimate, even if he still working under12 months. If so, how can I compute it?


    1. Hi Jesica,

      Although there is no such thing as Accrued Leave under the Holidays Act, most companies do accrue it and most payroll systems can do it.

      A simple formula is DaysPaid/Worked x (4/52) assuming you are on the Minimum 4 Weeks Leave. Days Paid are all the days you have worked and/or toaken off on leave.


      1. hello Justin, it means, that his current balance part-year estimate, cannot be taken, only the current balance available, if there is any like what is stated below:

        Annual entitlement: weeks (pro-rata)

        160.00 hrs/year (fixed)
        Holiday pay: 8.00 %
        Anniversary date: 29/07 dd/mm
        Opening balance and adjustments show help
        Available opening balance: 0.00 hrs
        Part-year estimate opening balance: 0.00 hrs
        Part-year estimate adjustment: 0.00 hrs
        Current balance available: 3.08 hrs
        Current balance part-year estimate: 52.31 hrs

        it means he cannot take his 52.31 hrs only the 3.08 hrs available.


        1. hello Justin, it means, that his current balance part-year estimate, cannot be taken, only the current balance available, if there is any like what is stated below:

          Annual entitlement: weeks (pro-rata)

          160.00 hrs/year (fixed)
          Holiday pay: 8.00 %
          Anniversary date: 29/07 dd/mm
          Opening balance and adjustments show help
          Available opening balance: 0.00 hrs
          Part-year estimate opening balance: 0.00 hrs
          Part-year estimate adjustment: 0.00 hrs
          Current balance available: 3.08 hrs
          Current balance part-year estimate: 52.31 hrs

          it means he cannot take his 52.31 hrs only the 3.08 hrs available. if so, how can I compute his 3.08 hrs?


          1. Taking accrued leave (current year) would come down to Company Policy. Most companies allow it but they are not obliged to.

            You should go back to the Employer and ask what the policy is the value of leave. Annual Leave must be paid at the higher of their Ordinary pay or 52 Week Average.

    1. Hi Ingrid,

      This will depend on your Company Payroll Policy but we would always advise people to take as much of their Leave prior to starting Parental Leave as it will be worth more per day for you. Once you commence Parental Leave all your accrued leave is re-valued at the 52 Week Average which can be less than the rate paid while still Annual Leave.

  80. I have a permanent contract of 2hrs per week. This year I had an addition of 2 more hours on a fixed term basis. When my fixed term ends at the end of this week, how will my annual leave that I take over the next few weeks be calculated? Should my pay rate be higher ?

    1. That will depend on how your Employer is treating it. If they have accrued additional leave based on your additional hours, then no you would not see an increase in the rate but you would have more hours to take off. If they did not increase the accruals and you only accrued based on your permanent hours, then yes, you would expect to see a higher rate.

  81. Can you please advise as how to pay a person who is on a permanent contract doing 16hrs on one payrate and 17hrs on a fixed term on a different pay rate. How do I pay out their annual leave as I can’t pay them 8% PAYG as well as annual leave.

    1. The Fixed Term Contract does not have to have the Holiday Paid each pay, you can accrue it like any fulltime staff.

      Alternatively, just have a different transaction that does not add to Holiday Pay but you can add the 8% to each pay, as a seperate line item.

  82. If you have no sick leave can your employer make you take it your day off sick as a holiday even if you request it as leave without pay?

  83. Hi there. Do you accrue annual holiday during UNPAID leave. Say if he/she was to take 8 weeks off work and stay on the payroll is the leave entitlement still 4 weeks but at what rate, if it works out to be less than the contract hourly pay rate, is that the minimum?

    1. Legislations says that you must accrue Annual Leave for a minimum of one week of approved Unpaid Leave. Anything after that is by agreement but not required.

  84. I have just started working for a company, one of our employees has had a pay review and will be getting an increase. Before confirming the amount our owner wants to “turn their accumulated hours on their annual leave as $$ rather than hours” – I have asked why however I am concerned that this is not legal. If they have accrued the leave in hrs why do we need to convert to dollars before a pay increase.
    “Annual holidays are paid at whichever rate is the higher of:
    the employee’s ordinary weekly pay at the beginning of the annual holiday, or
    the employee’s average weekly earnings for the 12 months just before the end of the last pay period before the annual holiday.”

    1. Hi Steve,

      Legislation does not allow for Annual Leave to be accrued or shown as $ figure, so yes I would object. The possible reason why is that once the new rate is in place all Outstanding Leave will be valued at the new rate.


    2. Hi Steve,

      There is no basis in legislation to accrue Annual Leave as a $ figure, so yes I would object. The reason they are asking this is that once the new rate is in place all Entitled Leave will be revalued to the new rate.


  85. Hi
    Ive been working full time for several years and will be moving to part time. I’ve accumulated leave and have Accrued, Owing and Excess. When moving to part time (from 40 to 30) – my earned leave is also readjusted. We accrue annual leave in hours, and all leave is showing as hours.

    I am in effect losing 25 % of my leave. I.e. I have 200 hrs, it now becomes 150 hrs. I am told that I am entitled to 4 weeks annual leave a year and this has not changed, bit that week is now 30 hrs versus 40.
    Hence the readjustment of my earned leave.

    Is this correct ?

    1. Based on the Current MBIE thinking, yes it is correct. But as you are leading towards, seems totally unfair. Your Employer can elect not to reduce your entitled leave.

  86. Hello

    my question is if I had leave in the beginning of my accident 29 hours ended up on ACC due to an injury for 5 months and still accrued leave up to 119 hours am i entitled to a cash pay out or not??

  87. Hi,
    Fiscal year April2020-march2021-10days
    Fiscal year April 2021-march2022-21days
    Can I get a entitled total leave 31 days.
    It’s possible to take.

    1. You can get paid Accrued Leave if your employer agrees. It is essentially deemed to be Leave in Advance.

  88. Hi Ezypay Team,

    I have recently put in my notice and am confused at what I will be paid out on termination of my contract.
    I have been working for the organisation for 3 years.

    Our leave table looks like this:

    AL Outstanding = 79 hours
    AL Accrued = 24.62 hours
    AL Total = 103.62 hours
    AL next due = 02/04/2022
    Will I just be paid out the accrued leave? or am i entitled to the AL Total?


    1. Accrued Leave does not offically exist under the Holidays Act and on Termination it is completely ignored. You will be paid your Outstanding Leave plus 8%, and 8% of Gross Liable Earnings from your last Anniversary Date.

  89. Hi there
    Bit of a hoha msg, is it illegal for my boss to deduct 37hrs out of my annuals without me asking for some? I had 154hrs last pay and now I’m left with 117hrs this pay. The accountant just started on the 6th July changed everything and I received my payslip yesterday to see I lost abit of my annuals

    1. Not really but you need to ask your Employer for clarification, it may just be a glitch. Ask for a full breakdown of your leave records.

  90. My work mate and I recently changed to part time from full time and wondering about the implications to leave. My balance looks ok however hers has gone from a positive balance to a negative. She’s been with the company two years worked full time until recently and now does two 8 hour days a week. We assumed her accrued bal should have stayed the same as it was calculated based on her full time hours and any new accrued calculations should be based on her part time days but they seem to have put her into a negative balance as if she owes. I’ve hunted all through the internet and Govt websites to try find any clarification on this and calculations but nothing surrounding a move to part time scenario

  91. Hi Justine, I have a question regarding Annual leave entitlement for an employee.

    The employee worked from 11.07.2016 to 25.10.2020 . (Final Pay on 25.10.2020)

    Employee rehired on 15.02.21 (after 3 months and 21 days) and it was agreed that the period employee was away will be treated as Leave without pay (hence no HP accrual)

    For the purpose of having correct Annual leave entitlement anniversary, we moved the anniversary date to 1 November 2016 ( moved forward original hire date by 3 months and 21 days).

    Now the accrual is right, i.e. system is accruing since new hire date (15.02.21) as expected.
    My concern is, on 1 November 2021 the employee will automatically get 160 hour of entitlement, even though employee’s accrual would not reach to 160 hour (reason – actually started accruing since Feb 2015).

    My question:

    Is 160 hour of entitlement is right? Based on the assumption that holiday pay entitlement is both time and money?

    It should be transferred from accrual build up since Feb 2021 which will be around 50 hours.

    Please share your thoughts.


  92. Hi,
    My payroll system confuses me! Currently it says I have:

    Annual Leave:
    Entitlement: 2.64 days
    Accrual: 11.39 days
    Total days: 14.04

    Personal Leave:
    Entitlement: -2.5 days
    Accrual: 3.34 days
    Total days: 0.83

    My employment anniversary is 04/02/2019, so technically I should have 10 days personal leave given that my 6 month anniversary (and start of personal leave) should be 04/08?

    Is this right? I don’t understand it, particularly the personal leave section.

  93. Hi, i was working full time and i had 64 hours available to take leave but i changed my hours to 16 per week and my employer zeroed out all my annual leave and now i have zero annual leave from last 4 months and zero accured? Can someone tell me what’s happening

    1. Hi Yogesh,

      I cannot comment on what is happening but it is not correct what has happened. I would approach your employer and say you want your leave restored. if they refuse then I suggest you make contact with the Labour Inspectorate https://www.employment.govt.nz/.

  94. Hi,
    Employee works at minimum wage. They get xferred to a different site which is living wage. Payroll is not formally modified but their payrate is manually adjusted each week to LW i.e. their ‘default rate’ is still MW. Will their future AL & SL be calculated correctly (NB, it’s a large entity & payroll is a whole separate department from the clusters of sites for which managers enter the hours worked etc. themselves)?

    1. Hi there,

      Not having the correct base rate set on the employee record will affect what they are paid for Annual and other Leave, so should be updated and a review done on any leave taken to ensure it uses the LW rate.


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