Understanding the higher rate setting for an ordinary daily rate in a holiday pay (New Zealand)

When processing Holiday Pay, employees are paid the higher of the Ordinary Daily Rate and Last 12 Months Average figures. The Ordinary Daily Rate to be used is determined from the Standard Pay and the Last 4 Week Average.

The 2018.01 release added the ability to set an employee's Ordinary Daily Rate for Holiday Pay as the higher of their Standard Pay rate or the 4 Week Average rate. A new "Higher Rate" option is available in the Ordinary Daily Rate dropdown on the Holiday Pay tab of the Employee Maintenance window.

When this option is selected, the system will calculate the Standard Pay rate and the 4 Week Average rate for the employee each pay, and use whichever of the two is higher. This option can be useful for cases like employees who occasionally work overtime, but mostly work to their Standard Pay.

In the Current Pay the employee's Ordinary Daily Rate is displayed as "Higher Rate" when this option has been selected.

Need more help? You can open the online help by pressing F1 on your keyboard while in your software.

You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.