Difference between average weekly earnings and average daily pay

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Marlies
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Difference between average weekly earnings and average daily pay

In one of our pays I noticed a difference between

 

Rate for average weekly earnings (paid for annual leave) (calculated with 2,080 hours per year) and

Rate for average daily pay (paid for Public Holiday, sick, lieu days) (calculated with 265 days per year).

 

This gives two slightly different hourly rates. Is it correct that it works like this? How do I explain our employee that he gets paid 2 different rates?

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Steven_M
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Re: Difference between average weekly earnings and average daily pay

Hi @Marlies 

 

Average weekly pay is determined by the gross earnings for the last 12 months and then dividing that value by 52. The average daily pay is a calculation made off the days worked by the employee. 

 

As these values do draw from two different sources for the divisor, these values could be different, particularly if you have an employee that has worked varied hours over each week but overall have done the same number of days.

Kind regards,
Steven

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