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Leave and entitlements

Most employees are entitled to a certain number of days of leave that they can take during the year. This might include annual leave, personal leave (sick leave), bereavement or compassionate leave, or carer's leave. Regardless of the name, MYOB handles all leave in a similar way.

If you're not sure what leave your employees are entitled to, the Fair Work website is a good place to start.

How leave works in MYOB

There are 2 parts to leave:

  • the leave balance (how much leave is available to be taken), and

  • the leave payment (how much is paid when leave is taken).

MYOB uses leave pay items to track your employees' leave balance. The payment of leave is handled using a wage pay item. So when an employee takes leave, the wage pay item looks after the payment and the leave pay item keeps track of their leave balance.

To help manage your employees' leave, MYOB comes with some default pay items (Payroll > Pay items):

  • wage pay items – to pay for annual leave and personal leave payments and to reduce the employee's leave balance

  • leave pay items – to calculate and maintain the accrued leave for different types of employees

    Example default pay items on the wages and leave tabs

Don't see all these default pay items?

If you've been using MYOB for a while, you might see fewer default pay items. But you can create new pay items to suit the needs of your business – see below. 

Once the applicable pay items are assigned to an employee, you can pay them for leave – like this example:

Example pay with leave pay items highlighted

In the above example, an employee is taking 7.6 hours of annual leave in the pay period, and this is entered against the  Annual Leave Pay  pay item . The Annual Leave Accrual leave pay item shows the number of hours the employee is accumulating over the pay period (2.923 hours). 

Need to fix some leave? See Managing your employees’ leaveWhat about unpaid leave? See Leave without pay.

What now?

Once you've set up your employees' leave, you can include leave in their pays. Find out about Paying leave.