How to Set Up the Annual Leave in Xero
- George Apostolov
How to Set Up the Annual Leave in Xero: step-by-step guide
On Xero's main dashboard, go to the top menu bar and click 'Payroll'.
Select 'Payroll Settings' from the list of options.
After that, tap the 'Pay Items' tab to proceed.
Choose 'Leave' from the choices.
Tap the 'Add' button in the top-right corner.
Subsequently, click 'Paid Leave'.
Provide all the necessary information related to the annual leave. Fill out their respective input fields accordingly.
Once done, review your input and then click 'Add'.
After completing these steps, the annual leave will be set up on your Xero account.
Quick answer: 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.
About this Xero tutorial
Configure annual leave in Xero by navigating to payroll settings, adding a paid leave pay item, and saving your details. This guide shows how to set Up the Annual Leave in Xero in 9 steps, starting with "On Xero's main dashboard, go to the top menu bar and click 'Payroll'" and finishing with "After completing these steps, the annual leave will be set up on your Xero account". The interactive demo above is a click-through copy of the real Xero interface, so you can rehearse each step before doing it in your own account.
Frequently asked questions
How many steps does it take to set Up the Annual Leave in Xero?
9 steps. Each one is listed in order above, and the demo highlights exactly where to click.
Can I try it without changing my own account?
Yes. Clicking through the demo doesn't touch your Xero data or settings. Once you know the flow, repeat it in your own workspace.
This tutorial is filed under Xero. Related guides: How to Split an Invoice in Xero, How to Transfer a Subscription in Xero and How to Turn Off the Invoice Reminders in Xero. Last reviewed 05 Oct 2026.
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