What are work days?

“Work Days” is a term PayHero uses to describe any day where the employee is paid, even if they only worked for a part-day. This includes regular days, Sick Leave, Annual Leave, and so on. Understanding the concept of Work Days is important as they determine certain leave calculations by determining the Average Daily Pay. ADP is only used when the Relevant Daily Pay cannot be determined. 

MBIE says ADP is worked out by calculating gross earnings, then “dividing this by the number of whole or part days the employee either worked or was on paid leave or holidays during that period.” As this sentence is a mouthful, we refer to it as a Work Day instead. Any day where the employee is paid, even if it is for a part-day, counts as a Work Day. 

If it’s clear, the employee work pattern found in your payroll system determines the Work Days value (shown in the image below). Otherwise, the employee with an irregular work pattern will have their Work Days value drawn from timesheets.