How to work out holiday pay?????

GIRLPOWER_2

can anyone please help me work out how to pay staff holiday...

we have a small business with a couple of staff who have all now finished their tempory contracts. The accountants do their wages and forward their payslips but we now need to work out how to pay their holidays.

They work monday to friday.

They will get 20 days a year plus bank holidays.

What we would like is to get the figure this breaks down to per day so each day they build it up so we know what they are due. as surely they don't build it up over weekend or when they are taking holidays or time off????

Can anyone help before the I jump up and down on the calculator...please.

banzai

52 (weeks in year) x 5 (days per week worked) = 260 days paid per year(including bank hols, as bank hols are weekdays and paid anyway)

20 (holiday allowance.. make sure you take out any days that have been taken) DIVIDED BY 260 = 0.0769 per day holiday allowance (rounded up)

Hope that helps, should be accurate providing i haven't messed up any figures, you should do it on your own calculator though as i have rounded up the daily allowance.

GIRLPOWER_2

Thanks you for the reply.... but.... should I not be deducting the bank holidays and the time they are taking the paid holidays off these figures ie.. the 260 days minus the 8 bank holidays and the 20 paid holidays as they are being paid them so surely they do not build up holidays as well from them or does this not make any difference??????

Woby_Tide

I'd say you are still accumulating holiday whilst on holiday(or maternity leave or bank holiday etc.) so include those as part of the working days(I know our company(big corporate) uses 260 days as the daily pay calculation).

Also from a profit(mercenary;)) point of view the lower the number of days you are using to calculate a daily rate the higher it will cost you, so stick to 260!

jfdi

When my Hubbie does this for his Saturday staff (who may've worked extra days, had unpaid holidays & are unlikely to stay a year!) he takes the work done over the relevant period (hours (or ££££ if the pay's not changed)), divides by 52 & multiplies by 4 - so they get 1 thirteenth of what they've worked as holiday pay.

Sumostar

Hi

Just to clarify a few points here:

1- You do not have to pay employees for bank holidays unless you want to or you have said you would in their contract of employment.

2- Employees are due one week holiday for every 13 they work. The holiday pay due is the normal weeks wage or an average weeks wage where this varies. If someone works the odd weekend this does not necessarily increase their holiday pay as it is not part of their normal working week.

The ACAS website has some good information on this subject.

Hope this helps

funnylittlewoman

You may be interested to know that the Working Time Regs, which give rise to the right to at least 4 weeks paid holidays per year, create a right to 'paid holidays' not to 'holiday pay'. It's a health and safety thing - adequate daily, weekly, annual rest breaks and all that. You only need to consider pay in lieu of holiday entitlement on termination of employment then you do a pro rata calculation. If you are considering paying 'rolled up' pay, i.e. including an element of holiday pay in each pay packet/salary run, be careful! There's quite a lot of caselaw around this point. For further info check out the free Citizens Advice website at https://www.adviceguide.org.uk.

Cheers.