Purchased Leave

To support staff with family or other commitments employers may allow staff to adopt a 46/48/50-week year for a negotiated 12-month period. The salary paid to them will be 46/52, 48/52 or 50/52 of their full-time salary.

Within the nominated 12-month period staff are able to apply to have two weeks (50/52) or four weeks (48/52) additional annual leave, with a proportionate reduction in salary spread over the full year. 

How to set up purchased leave

The following instructions will walk you through the process of setting up a purchased leave arrangement for employees:

  1. Create a specific leave allowance template for purchased leave for each option e.g. 2 weeks, 4 weeks etc.
  2. Each annual leave field will have the accrual based on whatever extra annual leave is being purchased e.g. 2 weeks would have the annual leave accrual as 0.11538 hours per hour worked: 

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  3. Assign the corresponding leave allowance template to the employee via their Employee file > Pay run defaults page.
  4. Change the salary of the employee by dividing leave weeks by total weeks e.g. 2 weeks extra annual leave would be Salary x 50/52. You can enter the new rate on the Employee file > Pay run defaults page.
  5. If you want to keep a record of the original salary, you can enter it as a note on the Employee file > Details page:


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N.B. You can also set up an anniversary date to trigger when the year is up to then pay out any remaining balance of leave not taken.

If you have any feedback or questions on the employee leave templates feature, please send us an email at support@yourpayroll.com.au.

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