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Relevant Daily Pay - Calculating Payment For Public Holidays

Published 01 Dec 2013

Relevant Daily Pay

"Relevant daily pay" is used to calculate the Employee’s pay entitlements for public holidays, alternative holidays, sick leave and bereavement leave. 

The law requires the employer to pay what the Employee would have received had the Employee worked on the day concerned, including commission and productivity based pay and payments for overtime if they would have been received on the day. (Please note that all Employer contributions to a Superannuation scheme are excluded.) 

If it is not possible or practicable to determine relevant daily pay, or if the Employee’s daily pay varies within the pay period, the Employer may use the "average daily pay". 

Average Daily Pay

Average Daily Pay is defined as gross earnings for previous 52 weeks divided by the number of days for which the Employee was paid during that period. 

For an in-depth look at this and Holidays in general see the Annual Holidays and Leave ebook which Employer Support Package subscribers can download from the Library tab of the Employers Toolbox [ ].

It is available for non members to purchase from the following link - "Annual Holidays and Leave".