Pay I’ve had several discussions this week about Relevant and Average Daily pay rates and what they mean in respect to Public Holidays. It’s nearly Christmas and it’s helpful to know what the difference is.

Relevant Daily Pay means paying an employee what they would have earned if they were at work on the day. If your employee would have normally worked 8 hours on that day (e.g. that is what they usually work or what they would have worked those hours if they were rostered on) then they are paid 8 hours for the holiday (the relevant daily pay).

Sometimes though it is not easy to determine what hours an employee may have worked. This is when the Average Daily Pay is used. To get the Average Daily Pay figure you need to work out an employee’s gross earnings over the past 52 weeks. Divide this number by the number of whole or part days the employee either worked or was on paid leave or holidays during that period. You need to include regular payments such as commissions and bonuses, regular overtime and the cash value of board or lodgings in the calculations.

Check out the Ministry of Innovation and Business website which has some helpful information and calculators. www.employment.govt.nz.

Contact Kim Hamill today on 307 8448 or email kim@yoa.co.nz to find out more.