When you add the Annual Leave Taken pay code to an employee's pay, you will be shown three options for the hourly rate :
- Employee Pay
- Ordinary Pay
- Average Pay
Generally you should pay the highest of these three pay rates.
Employee Pay is the employee's normal rate from their Employment tab.
Ordinary Pay is the average hourly rate over the last four weeks, normally this is the highest rate.
Average Pay is the average hourly rate over the last 12 months.
The exception to this is the 12 months after an employee returns from parental leave you pay the Average rate.
For more information on Annual Leave payments see this article from MBIE.