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Leave & public holidays

What is Relevant daily pay?

Updated 21 Sept 2026 • 5 min read

Relevant daily pay is what an employee would have earned on the specific day they took leave. Under the Holidays Act 2003 it is the basis for paying sick leave, bereavement leave, alternative holidays and public holidays — collectively BAPS leave — as distinct from annual holidays.

This glossary article about relevant daily pay provides general information about New Zealand employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

What BAPS leave covers

Four payment types share this basis, which is why they are grouped as BAPS:

  • Bereavement leave
  • Alternative holidays — see alternative holiday
  • Public holidays
  • Sick leave

Each is paid at relevant daily pay: what the employee would have earned had they worked on that particular day, including regular allowances, overtime and productivity payments they would have received.

When average daily pay applies

Sometimes relevant daily pay cannot be worked out — the employee's daily pay varies within the pay period, or it is simply not possible to determine what they would have earned. In that case average daily pay is used instead: gross earnings over the last 52 weeks divided by the number of whole or part days worked in that period.

It is not a free choice between the two. Average daily pay is available where relevant daily pay cannot be determined, or where the employee's pay varies within the pay period.

Why it differs from annual holidays

Annual holidays use a weekly basis — the greater of ordinary weekly pay and average weekly earnings. BAPS leave uses a daily one. Two different bases, two different calculations, in the same Act.

Whether a day is payable at all depends on the otherwise working day test. So a public holiday payment needs two questions answered: was it an otherwise working day, and what is the relevant daily pay for it. Our Holidays Act leave calculator covers the annual holiday side.

RosterElf Team

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RosterElf Team

Workforce Management Specialists

The RosterElf team comprises workforce management specialists with deep expertise in employment law, rostering best practices, and payroll compliance. Our team works directly with businesses across hospitality, healthcare, retail, and service industries to develop practical solutions for common workforce challenges.

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