Salary/Holiday Pay Question

oysterpearl

Hello,

I work part time (4 days per week) and am currently trying to see if my employers have worked out my salary correctly, as I'm having some trouble getting my head around it.

I'm entitled to 24.4 days off per year (incl bank holidays etc).

They have worked out my salary by:

Daily Rate x 4 days per week x 48 working weeks

They say that the 4 missing weeks (52 weeks in a year) roughly equal the holiday entitlement.

Is this how holiday pay is normally calculated?

Thanks for your help.

MrsManda

If they're only working out your salary for 48 weeks, how are they planning on paying you for your holidays?

oysterpearl

Hello,

They say that if I'm paid a daily rate, rather than an annual rate, my holiday pay would be included as part of the daily rate (not on top of).

shopbot

This is doesn't look like the way I would calculate holiday.

I would expect that you would have a salary per year and that your holiday pay is included in that.

Are they saying that they pay you a higher hourly rate in return for not being paid holiday?

Also if what do your written terms of employment say?

I think you need to get advice from somewhere like Citizens Advice Bureau.

You should also read these links:
http://www.adviceguide.org.uk/index/life/employment/holidays_and_holiday_pay.htm#who_has_the_right_to_paid_holidays
http://www.tuc.org.uk/tuc/holidays.pdf

oysterpearl

Thanks for your replies.

I think the main issue with working this out seems to be the confusion over them calculating 48 weeks, rather than 52.

They are saying that I physically work 48 weeks and have 4 weeks off for paid holiday, which is correct. However, it seems that they think that part of your standard daily pay, pays for the holiday days.

I'm not sure if this is correct?

Savvy_Sue

oysterpearl wrote: »

Thanks for your replies.

I think the main issue with working this out seems to be the confusion over them calculating 48 weeks, rather than 52.

They are saying that I physically work 48 weeks and have 4 weeks off for paid holiday, which is correct. However, it seems that they think that part of your standard daily pay, pays for the holiday days.

I'm not sure if this is correct?

No, it's not, that system is 'rolled up holiday pay' and it's not supposed to happen any more.

If the employer does not pay you for 4 weeks a year, then the only way they can legally do that is (I think) to show the holiday pay entitlement on your payslip, but separately.

The easiest way to work out holiday pay is to take 12.07% of your 'normal' pay. If that gives you the same answer as they've got, then it's about right, BUT holiday pay should be shown separately.

oysterpearl

Savvy_Sue wrote: »

No, it's not, that system is 'rolled up holiday pay' and it's not supposed to happen any more.

If the employer does not pay you for 4 weeks a year, then the only way they can legally do that is (I think) to show the holiday pay entitlement on your payslip, but separately.

The easiest way to work out holiday pay is to take 12.07% of your 'normal' pay. If that gives you the same answer as they've got, then it's about right, BUT holiday pay should be shown separately.

Thanks for your answer. I have questioned this and got the following response:

"All employees at ###### to date have been salaried, whereby an annual salary includes the statutory 20 days holiday leave plus 8 bank holidays. Annual salary is paid in 12 even monthly amounts regardless of when holiday is taken, and regardless of the exact number of working days in the month.

It was agreed when you went part time that you were on a salary rate of ####/month, for which you had the pro-rata holiday entitlement, both of which have increased when your days worked increased.

If you no longer wish to be on a salary rate, and want us to pay you on a daily basis, then, any daily rate used will need to be inclusive of holiday pay. This system of payment will cause us extra administration."

Please can you advise if that makes sense?

Savvy_Sue

It doesn't make a lot of sense to me, but can I just check whether you work a 'normal' year?

What I would do for someone working 4 'normal' days per year over the full year would be to divide a 5 days pw salary by 5 and multiply by 4. It would be more complicated if you were working term time only.

when_will_it_end

hi

my brother is on a salary and when he takes his holidays he is just paid as if he had been in, so his monthly pay is allways the same

he worked out his hourly wage by dividing his salary by 52
and then dividing by his hours that he works in a week

ableandy

This is incorrect, you should be paid for 48 weeks + 4 week holiday. It is perfectly acceptable for them to divide your salary by 12 and pay it in 12 equal payments but you must receive pay for 52 weeks ..... unless you are not an employee, in which case (such as a contractor) they can pay you a daily rate which includes a sum for holidays / sick and then you would not be paid any salary for holiday days as this has already been paid.

Check your employment status in your contract.

paddedjohn

Where does the 48 weeks and 4 weeks holiday come from? You are entitled to a minimum of 5.6 weeks paid leave, this is 5.6 weeks at 4 days which = 22.4 days. Your employer cant make you take more than 4 days in any week because you only work 4 days a week.