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I have discovered a workaround. Enter the Ordinary Hours an employee works into the Ordinary Hours pay item - leave the rate $0.00 so it doesn't affect the Gross pay figure. The pay run can then accrue the correct amount of hours for Annual Leave & Sick Leave etc, based on the hours entered.

We then use the other Pay Items to setup to pay the correct wages as per their correct hourly rate. It is annoying, but the only work around at this stage.

There are multiple employees I am needing this function for. At this stage i am having to work out the 'multiple of the ordinary rate 'with about ten decimal points! And I still cannot get the exact pay rate. This feature is a 'must' to be able to accrue leave on additional pay items that don't fall under this 'multiple of ordinary rate'.

Have the option to accrue leave on other pay items. ie. Saturday rate has to be set up with its own rate per employee as each employee is on their own rate for Saturday and isn't a "mutplication of the ordinary rate". This also needs leave to accrue on it.
Spoken to Xero adviser and they don't have a set up for this yet.

I am very surprised that Xero has not resolved this issue already, with all the comments I have been reading. Please put this on the top of your list and lets get this sorted out.

Xero should realise this is a very important issue. The time and effort it takes to manually amend the accrued hours seems such a 'backward' step and errors can be made so easily! Xero was such a forward thinking company with great ideas but now you are slipping behind.
We must have leave accrue for weekend, after hours etc etc etc. It is imperative this be sorted.

If we can simply add more Ordinary Hours under Ordinary earnings rate and all hours worked in Ordinary Hours would accrue leave this would be much simpler than having to setup "multiple Earnings Rate" and having to calc the multiplication for each pay change.
Also creates a problem that we need one Ordinary Hours as a Rate per unit to put in a rate amount, but different staff have different combinations of which ordinary hours used so can't have one main with rate per unit and rest as multiple rate.

I've been asking Xero to fix this exact issue for years. They don't listen and simply say:

"At this stage there is no option to select leave accruals to calculate on hours worked that are not classified as 'Ordinary Time Earnings'."

Very poor if you ask me. I can't imagine how many employers are not aware of this issue in Xero and such their employees leave entitlements are being under accrued.

We need to have the option to select leave accruals to calculate on hours worked that are not classified as 'Ordinary Time Earnings'.

Employees with different pay rates that are not necessarily a specific 'multiple of employee's ordinary earnings rate' still require leave to accrue on these hours - it is too time consuming (and frankly absurd) for employers and bookkeepers to have to calculate these hours manually for each pay run!

We need to have the option to select leave accruals to calculate on hours worked that are not classified as 'Ordinary Time Earnings'.

Employees with different pay rates that are not necessarily a specific 'multiple of employee's ordinary earnings rate' still require leave to accrue on these hours - it is too time consuming (and frankly absurd) for employers and bookkeepers to have to calculate these hours manually for each pay run!

This will a very beneficial update to the system. In many industries people work on a roster, and may have different base rates which are not multiple earnings of each other. Currently we always have to manually calculate the leave accrual amounts for such employees.

This should be a priority for xero. We have to deal with so many different scenarios everyday and something like this should already be in practice! I really would just like the ability to enter a pay rate for a pay item and select that item to accrue leave. Sounds easy enough but I realise lots goes on in the background but we already accrue leave for other items!

I am interested to know why Xero do it this way? It seems a long way around. In MYOB it’s a simple tick on each pay item if leave is to accrue.

Leave accrual should be the default option on all ordinary time earnings, and vary according to the leave assigned to the employee, not the pay item. It would be too easy with the current set up for an employer to trust that the leave is correct, especially for casuals only accruing LSL, and end up in breach of their obligations.

Many businesses work hours at different pay rates to the ordinary hours, but still need to accrue leave on these hours. Currently you can only use the 'Multiple of Ordinary Earnings' option to select to accrue leave on a pay item other than the main Ordinary Hours item. This doesn't always work as the rate is not always a multiple to 2 decimal places, and different staff have different rates, so an item has to set up for each staff member for each different rate. Would be much easier to just select 'Accrue leave on this item' on all pay items.

Currently we have to adjust the leave balances for every employee for every Saturday or Sunday they work and which not overtime so not multiples of their weekly pay rate

Currently the option to " Accrue Leave for this earnings rate" is enabled only when you select " Multiples of an employee's ordinary earnings rate".

Some industry Awards have different pay rates for different days which all apply to an individual employee , so these are all considered " Ordinary Earnings Rates" and should accrue leave

Please enable the "Rate per unit" Type to " Accrue Leave for this earnings rate"

Leave no longer accrues on all pay items unless selected 'Multiple of Employee's Ordinary Earnings Rate'.
Leave needs to be available to accrue on all selected pay items.

I have been requesting this for years!!! Surely it is not that hard Xero to add a payroll item with a $ amount!!

We have a client who pays based on their award. As a result they have over a 100 different Earnings Names. Of those items, a full time employee may have 3 different earning names that are "ordinary earnings".

This makes things like accrual of leave accrual tricky especially when LWOP comes into effect.

It would also help with correct LSL accrual on all employees.

It would be ideal if you could opt to accrue leave on fixed rate earnings that are in addition to Ordinary Earnings pay items such as Saturday, Sunday, Night Shift and Afternoon Shift pay items. We have a client that imports timesheets from their main software and require payroll items to be set up as 'rate per unit' for it to successfully integrate with Xero. However, we have now run in to the issue of having to complete a manual calculation for leave accruals for permanent employees who work regular shifts on Saturdays, Sundays etc Xero does not allow you to select leave accruals on other fixed rate earnings payroll items only multiples of ordinary earnings. Seems simple enough to set up for the multiple, that I don't see why it should not be an option for fixed rate payroll items. With the client newly coming to Xero it was a bit of shock, especially because they are on such a large subscription.