Glossary

Holiday Pay

Payment given to an employee for taking annual leave.

Holiday pay must be calculated each time the employee goes on holiday. The amount of holiday pay is based on whichever is the highest rate of either:

1. The employee’s ordinary weekly pay or
2. The employee’s average weekly earnings over the past 12 months before the end of the last pay period.

Employment agreements can include specific clauses that offer higher rates of holiday pay and extra provisions. For example, being paid penalty rates for taking leave on a Sunday or public holiday the employee would have otherwise worked.