# How to Set Up the Annual Leave in Xero

> To set up annual leave in Xero, go to Payroll Settings from the Payroll menu, select Pay Items and Leave, click Add and Paid Leave, fill in the required information, and click Add.

Canonical: https://livedemo.ai/tutorials/how-to-set-up-the-annual-leave-in-xero/
Apps: Xero
Updated: 2026-10-05
Interactive demo: https://story-api.livedemo.ai/workspaces/62255d3d3304f17b8f5e2d03/stories/692a4e50ab56e05a00ffa25b/preview?step=1

## Steps

1. On Xero's main dashboard, go to the top menu bar and click 'Payroll'.
2. Select 'Payroll Settings' from the list of options.
3. After that, tap the 'Pay Items' tab to proceed.
4. Choose 'Leave' from the choices.
5. Tap the 'Add' button in the top-right corner.
6. Subsequently, click 'Paid Leave'.
7. Provide all the necessary information related to the annual leave. Fill out their respective input fields accordingly.
8. Once done, review your input and then click 'Add'.
9. After completing these steps, the annual leave will be set up on your Xero account.