Xero Payroll Settings – How to Edit a Leave Pay Item


This guide demonstrates how to make changes to Leave pay item in Xero payroll. In this tutorial, we will edit a leave pay item in Xero’s demo company.

Pay Items in Xero’s Payroll Settings

To edit a leave pay item, first go to the Pay Items tab of the payroll settings area:

  1. Go to Settings → Payroll in the main menu.
  2. Click on the Pay Items tab.


How to Edit a Leave Pay Item

On the Pay Items tab, you should see a number of pay items that have already been set up in the demo company. In the exercise, we will add an annual entitlement of 50 hours to the Community Service Leave pay item. To do this:

  • Select Leave on the left-hand side.
  • Click on the three vertical dots on the right-hand side of the Community Service Leave row.
  • Click on Edit in the drop-down list.


A pop-up box will appear allowing you to change some of the fields. For this exercise, do the following:

  • Leave Name: leave as is.
  • Type of Units: leave as is.
  • Leave Loading Rate (optional): leave as is.
  • Normal Entitlement (optional): type in 50.
  • Show Balance on Payslip: leave un-ticked.


Click on the Save button when finished. You should now see that 50 hours have been allocated to the Normal Entitlement field of the Community Service Leave pay item.


You’re All Set!

That’s it for this lesson. Find lots more helpful articles via the main menu or check out our main blog page here.