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An Entitlement is a government program guaranteeing access to some benefit by members of a specific group and based on established rights or by legislation. The term may also reflect a pejorative connotation, as in a "sense of Entitlement".


In Q6, there are two default Entitlements, which are Annual Leave Accrual and Sick Leave Accrual. And both of these two Entitlements are set to be carried over to next financial year by default.

1.Annual Leave Accrual:

The default accruals for the Holiday Leave Pay is set to 4 weeks (20 days) per annum, 7.6923% of gross hours worked. The percentage is calculated as follows:

(4 weeks x 5 days x 8 hours) / (52 weeks x 5 days x 8 hours) = 4 / 52 = 7.6923%


2.Sick Leave Accrual:


The default accruals for the Sick Leave Pay is set to 2 weeks (10 days) per annum, 3.84615% of gross hours worked. The percentage is calculated as follows:

(2 weeks x 5 days x 8 hours) / (52 weeks x 5 days x 8 hours) = 2 / 52 = 3.84615%


Steps on how to create Entitlement


1.Go to Settings > Pay Item List;

2.Click Entitlements > Add New;

3.Fill the required information;


Fields explained in Entitlement Pay Item



1.Entitlement Name: This is a mandatory field, which can’t be left blank. User may assign an unique name describing what this Pay Item about.

2.Calculation Basis: User may set up individual formula for each Entitlement through the Calculation Basis.

a.Percentage: User may enter a percentage to calculate against one of the Pay Item Wages in the next field, and specify any Pay Item excluding from the calculation in the Exclusion List, where it has included the entire hourly wage list. Multiple options are available inside the Exclusion List.

          Let’s take an example on how exclusion list works.

          If user has selected Overtime (2 x) from Exclusion List, and generate Pay Run with settings of 7.6923% Annual Leave Accrual on Gross Wage, then the overtime hours would not be taken into calculation on Annual Leave Accrual no matter how many overtime hours have been done. However, if Overtime (2 x) is not selected in Exclusion List, then the overtime hours needs to be added into total hours calculation for Annual Leave Accrual.

          A number would indicate how many Pay Items have been selected from Exclusion List behind the field.

b.Fixed Rate: User may enter a fixed amount to be add on per pay period, no matter it’s weekly, fortnightly or monthly.

3.Paid Through: This is the correspondent account to pay out the entitlements. In this case, Annual Leave Pay is the selected account by default. 

4.Carry Remaining Entitlement Over to Next Year is ticked by default, which means all remaining unused entitlement would be carried over to next financial year.

5.Save: Once it has been saved, the Pay Item would be included in the Pay Item List.

6.Exit: Screen will be back to Pay Item list once user clicks Exit.






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