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AlanaCK's avatar
AlanaCK
User
2 years ago

Hourly Rate for Annual Leave

Hello - i've been using essientals for a year now.  Really miss not having a support person to contact.  When calculating AL should an addition such as rent boost up the hourly rate when on annual leave?  The employee doesn't actually pay rent as its a deduction as well so nets itself off but they are taxed on the amount.  Thansk in advance for your help.

annual leave
hourly rate
rent

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  • jenniek's avatar
    jenniek
    Ultimate Partner
    2 years ago

    Hi AlanaCK 

    Yes it will increase their leave rate if the allowance is included in gross earnings - which I would expect that a rent allowance would - it depends what their contract says. I have attached a snip from employment.govt.nz where it says the cash equivalent of lodgings form part of gross earnings. Hope this helps.