Q: We process our salaries monthly on 15 each month. We process any leave taken from the previous month i.e. September in October.

Our employees received a pay increase from 1 October this month Should the September holidays processed in the October pay been paid at the new salary rate or on AWE going back 12 months from the last pay period. I believe it is the latter however wanted to check.

A: Leave is defined at the time leave is taken so the rate for 15th of the month for (AWE) goes back to the 15th of the previous month. So, the salary rate change would not impact on AWE in Oct BUT OWP is based on the agreed week and this calculation would be based on the change of rate that happened on the 1 Oct.

So, the greater of AWE and OWP could see OWP is the higher of the two based on the salary rate change on the 1 Oct.