How is holiday pay calculated?

Ciwan

Not sure what a breakdown of a wage is. I just know that according to my contract, I am on £48K a year, and I know that after student loans, tax and NIC, and +5% cash scheme (cause I don't use any of the company benefits), I get paid around £2800 a month.

Gazzafatcityboy

I would double check your student loan contribution. I remember when I was paying my student loan that if I got paid a bonus, student loan would take extra amount of money from there as well.
Your wage slip surely gives you a breakdown of the money.

Comms69

presumabley the 60.5 hours is until the end of the year, which you aren't going to be there for?

Ciwan

I'm not sure, but I managed to find the payslip, here it is.

It is 3% Flex Cash too!

Ciwan

I can see it is all gone to taxes and student loans. Last month Income Tax was £706.06, but this month it is £1026.07.

Student loans were £237, but this month they were £309.

NIC was £375.80, this month it was £391.80.

spadoosh

I made some assumptions and worked out that ( i think on my assumptions ) that you would be entitled to 5.5 days holiday.

That works out at £1015.41 and theyve paid £1107.70.

The higher figure works out at about 6 days holiday.

You might only have an extra £400 in the pay packet but you can see theyve paid £1107 in holidays. The discrepancy is in the tax and im guessing student loans.

getmore4less

If Holidays are Jan to Dec then you won't be due the full amount you are leaving early and very unlikely the system has that prorata.

without knowing your normal full allowance not possible to tell.

you are 4.6 weeks short of the years for statutory that's 28*(52-4.6)/52=25.5 thats 2.5 days less.

I just checked the online tool again. I have 60.5 hours holiday remaining. That's about 8 days, not 9. I was mistaken about the number of days. It is 8 days holiday remaining

If the system says 8 days that would drop down to 5.5 ish.

So the top up pay will be quite a bit less what's the gross amount compared to a normal month?

The holiday pay should be on a separate line.

Gazzafatcityboy

I am thinking that because of the extra income that has come in. You will be seen as earning more therefore be taxed higher? I think my bonus's were like that as well although its different as everything for me is taxed at 40%.

getmore4less

At £48k base it will have all been taxed at 40% and your NI should be 2%


also check it was paid with the 5%, it should include that.