I'm confused between Holiday Pay and Annual Leave. Which payment type do I use in this timesheet?

When filling in a timesheet, picking the correct leave type is crucial. Let's clarify the holiday pay/annual leave question.

Updated: March 2023


Leave-type options are found in the dropdown menu when filling in a timesheet. Let's make sure you pick the right one.

You will most regularly use annual leave when filling in leave on a timesheet as this is regular paid time off work. 

Annual leave, also called annual holidays, is the minimum of 4 weeks of paid time off work employees are entitled to after 12 months of employment. This is paid at the greater of ordinary weekly pay (at the time of the leave) or average weekly earnings over the 12 months before the end of the last pay period.

Tips to remember: 

  • Annual leave is entered the same way you enter the employee's standard pay on a timesheet
  • Leave balance is calculated in days

Follow this link for step-by-step instructions on how to enter annual leave on a timesheet.

On the rare occasion when an employee is temporary, employed for less than 12 months, or works intermittently holiday pay is offered instead of annual leave.

Holiday pay is paid to employees where it is not practical for them to take four weeks of annual leave. This is calculated at 8% of gross income and is included with their regular pay, or accumulated to be paid at the end of their employment. 

Tips to remember:

  • Holiday pay is entered as a dollar amount on a timesheet

Follow this link for step-by-step instructions on how to enter holiday pay on a timesheet.