Forum Discussion

AlanaCK's avatar
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.

  • jenniek's avatar
    jenniek
    Ultimate Partner

    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.