What is the payroll process when I pay employees every pay period?

You’ll need to:

  • Understand what their standard leave entitlement are. Full-time and part-time workers are entitled to annual paid leave, equivalent to the total hours worked for a span of four weeks.
  • Know the number of hours worked within the week. The standard full-time employee works 38 hours each week.
  • Calculate annual or sick leave for full-time employees. 

For annual leave hours, this is the hours equivalent to the total number of ordinary hours worked for a period of four weeks. For example, Person A works 38 hours per week and would obtain 152 hours of paid annual leave – 38 hours multiplied by 4 weeks).

For sick leave hours, full-time employees are entitled to 10 days of paid sick leave. It is roughly 1/26 of an employee’s ordinary working hours in a year. For example, Person A works 38 hours per week for 5 days which adds up to 1,976 hours a year and would be eligible for (1/26 * 1976 Hours = 76 hours or 10 days)

For more information on sick leave, visit the Paid Sick & Carers Leave page on the Fair Work website.