Solved
MYOB Payroll - reduction in payrate
Hi all, An employee has been asked to permanently take a 20% reduction in pay but is concerned that the 30 annual leave days owing at this stage will start to reduce in rates to reflect the deductio...
Hi Leah_ChCh
Your employee is correct. While his leave entitlement will stay the same - the average of the last 52 weeks pay will decrease over time - so his existing $40.00/hr will come down as time goes on. This is because annual leave is calculated at the average of the last 52 weeks gross earnings - when he takes annual leave - so it is a roving figure which changes every week. It will take a year to decrease fully - assuming he doesn't earn any overtime, bonues etc that may affect gross earnings.
