Cost of buying annual leave

flutterbyuk25

Hey all

First day back in work and my brain seems to have gone caput!

I want to buy extra annual leave but I can't work out how much it will cost me, and the HR woman is still on leave!

Can anyone help?

My HR policy says:

The cost of purchasing additional leave is at the rate of 1/260th per day i.e. if you wish to purchase one day of additional leave it will cost the equivalent of one days pay.

I earn £20300pa, so would it cost approx £78 per day of leave bought? Or have I got that completely wrong?!

Cheers

x

LittleMrsThrifty

Yes although you probably won't forefit as much money as this once you have accounted for NI and Tax.

paddedjohn

i think they would lower your daily rate by 1/260th to pay for your day off, (about .30p a day) this way you will be paid the same rate every day of the year including all your leave

getmore4less

Actualy there are 2 problems with this calc.

1st is it is based on 52 weeks @ 5 days, years are bigger than this.

2nd if you say take enough days to get to working only 6 months this should be 1/2 pay

Stat holidys are 28, 14 in each 6 months so you only need to take 130-14 days off to have the 6 months and still have 14 days in the other 6months.

The extra holiday only costs you 116/260 which is less than 1/2.

paddedjohn

Annual wage £20,300 divided by 260 days to find a daily rate, approx £78.08, if the op wants an extra day off it will cost £78.08 which would be spread over the remaining 259 days, therefore each days pay would be reduced by approx .30p and the annual salary would be approx £20,221.

Ive got too much time on my hands at the moment......

FatVonD

£78 per day gross but you'd have lost roughly 25% of that in tax anyway which brings it down to roughly £58.50 (take home), so if you bought 5 days worth you'd see £292.50 less take home pay across the year.

If you're paid monthly that amount should be spread across the year so you'll have £24.37 per month less in your take home pay.

Well worth it for an extra weeks holiday

flutterbyuk25

Thank you all!!

Glad I do still have some brain cells left!

It would be taken out over 6 months not a year so I need to decide if I can afford the 5 days PLUS the 4 weeks in New Zealand I want the leave for I get 28 days anyway so have enough leave.

x

sammyjammy

Can't you just take unpaid leave? It all sounds way too compliated!

flutterbyuk25

sammyjammy wrote: »

Can't you just take unpaid leave? It all sounds way too compliated!

That's my next consideration but I'm hoping not to do that. I've done it in the past (4months career break) with a different employer.

x

hcb42

getmore4less wrote: »

Actualy there are 2 problems with this calc.

1st is it is based on 52 weeks @ 5 days, years are bigger than this.

QUOTE]


How is it wrong?

it is based on fact OP (presumably, I dont know the OP!) works five days out of seven over 52 weeks, like most FT employees.....:)

getmore4less

helencbradshaw wrote: »

getmore4less wrote: »

Actualy there are 2 problems with this calc.

1st is it is based on 52 weeks @ 5 days, years are bigger than this.

QUOTE]


How is it wrong?

it is based on fact OP (presumably, I dont know the OP!) works five days out of seven over 52 weeks, like most FT employees.....:)

A year is NOT 52 weeks.

The differance is small though so 260 days is a reasonable approximation for this sort of calculation and an employer can use any calculation they like as long as they don't beak the WTD and statutory holidays.