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Labour / Annual Leave Calculations

Annual Leave Calculations

When Calculating your employees pay for their annual leave you need to compare their Ordinary Weekly Pay (OWP) – average wage over the last four weeks, and their Average Weekly Earnings (AWE) – Average weekly wage over the last year, and pay them the greater rate. Find out more here.

If you are using a pay role system, it would pay to do a manual check to ensure it is using the correct calculations.