We are reviewing the calculate the leave adjustment for our monthly salary staff.

We think there are two options (see table below for an example):

1. Calculate the current daily wages (CDW) based on actual days in the current month and compare it with actual daily wages (ADW) and work out leave adjustment for leave take by staff.

2. Calculate the CDW by 30 days. CDW will, normally, be higher than ADW.

We noticed that option 1 is more complicated to manage. But it will definitely meet the 713 requirement.

Is option 2 acceptable under the 713 requirement (provided that we stated it in the employment contract with the employee)? This option can simplify our administration a lot.

Please advise.