**Eg: **

if an employee who has been employed for two years and has a monthly salary of $20,000 and takes 5 days of paid annual leave this month, how to calculate his AL pay ?

**Step 1**

When you are adding staff in [**People**], firstly choose corresponding [**Payroll policy**] and switch [**Salary Type**] to [**Daily**] then.( If you have questions about payroll policy setting, please refer to this blog Monthly Salary- How to Add Payroll Policy).

**Step 2**

Enter [**Payroll**]>[**setting**]>[**Pay items settings**]>[**New**], fill in basic information:[**Name**], [**Formula Alias**],[**Decimal Place**],**[Rounding Rules**] (Choose income) and etc. then click [**save**]>[**Next**]**.**

**Step 3**

Income setting: [**Tax Return**], [**Benefit Income**], [**Average Daily Wage**], click **next** after having done with the setting.

**Step4: Formula setting **

**Eg 1 : **If a monthly paid employee calculated his/her annual leave salary according to ADW, the formula comes to: ADW(AverageDailyRate)*Annual leave day= final annual leave salary amount.

**Eg 2 : **If the monthly paid employee is doing the similar calculation according to his/her basic salary, we should calculate the salary paid per day at first then multiplied by annual leave days, finally we can get the correct conclusion.

**Eg 3: **If we figure out an employee’s ADW is greater than his current average daily wage, then it is necessary to add the gap between two values up in this case. Formula then became: (ADW-new basic salary)*annual leave days.

**Step 5**

Fill in [**Name**], [**Pay Item**](choose the one annual leave salary of a monthly paid employee which had been created before), [**Amount**] and [**Date**] in [**Variable Pay Item**] before doing regular calculations..

For example, If an employee is paid 300 dollars per month/day while taking voluntary leaves and wants to have five annual leaves this month, then how to calculate annual leave pay ?

**Step 1**

When you are adding staff in [**People**], firstly choose corresponding [**Payroll policy**] ,then switch [**Salary Type**] to [**Daily**] .( If you have questions about payroll policy setting, please refer to this blog Monthly Salary- How to Add Payroll Policy).

**Step 2**

Enter [**Payroll**]>[**setting**]>[**Pay items settings**]>[**New**], fill in basic information:[**Name**], [**Formula Alias**],[**Decimal Place**],**[Rounding Rules**] (Choose income) and etc. then click [**save**]>[**Next**]**.**

**Step 3**

Income setting: [**Tax Return**], [**Benefit Income**], [**Average Daily Wage**], then click [**Next**]**.**

**Step 4: Formula setting**

**Eg 1:** If the daily paid employee counts his/her annual leave pay according to ADW then the formula will become: ADW(AverageDailyRate)* Annual Leave Days= final annual leave pay.

**Eg 2:** If a Daily paid employee calculates the annual leave pay according to his/her annual daily wage, then the formula comes to:( Basic salary this month/ actual working days this month)* Annual leave days= Final annual leave pay.

**Notice : **You should obtain an employee’s total working hours before calculating his/her total working days, then divide that by working hours signed with him/her in the contract. In the case where the staff is in need of frequent overtime work while the total amount is 20% higher than employee’s average monthly wage, then it is necessary to count OT Allowance into his or her total earnings.

**Step 5**

Fill in [**Name**], [**Pay Items**]( choose one daily paid staff’s annual leave salary that was created before), [**Amount**] and [**Date**] in **New** before calculating.