Statutory Holiday Reduction from WAges?

paulr23

Hi all,

I have recently just got a payslip from Hays as I started a new temporary job through them last week and just received my payslip. I have noticed a stat hol ded showing on my payslip which I have never seen before, so it looks like they are paying me for my holiday and then deducting it afterwards. My intended rate of pay is £17.71 but my payslip shows £20.11 per hour so a little confused by that.

I got paid a total of £703.85 for a week before deductions, and -£75.81 was deducted for holiday pay which works out to 10.77%, this is for a week. My documents state I will be paid at a rate of 10.77% for each hour worked for holiday, but I am not sure if this is correct? NB - this is for a 35 hour week

Does this seem correct because I thought industry standard was 12.07% was supposed to be paid not 10.77%?

paulr23

I seemed to have worked out I am effectively getting paid 2.73% better than what I have stated. (20.11-17.71)=2.4/17.71=13.55% increase. 13.55% - 10.77% which was deducted leaves 2.73% 

If anyone could shed some light if they have experienced this before would appreciate it as I have not had to deal with this before so just want to ensure it is correct. My first week I have accrued 4.22 hours which works out to 12.07% accrual rate.

This all confuses me.

Savvy_Sue

12.07% is the statutory minimum holiday entitlement. 

I didn't think employers were supposed to pay 'rolled up' holiday pay: it is possible that agencies are allowed to do it differently, but when I had temps I would pay them say £10 per hour and then add on the holiday pay as a separate item. 

I have no idea why they are deducting holiday pay so really your best bet is to ask them to explain your payslip. Before doing that, do read any documentation they've given you because one would hope it's all explained there ... 

General_Grant

What sort of contractual relationship do you have with Hays?  
Is it "traditional" where they deduct income tax and NI and then they pay Employers NI (which isn't deducted from YOUR pay)?

getmore4less

It looks like 
X+12.07%.
You deduct 10.77% from that total to get back to X. 

You should get that back when you take holiday or finish. 

Just make sure the other deductions are after taking off the holiday pay, that should get tax and NI when paid. 

paulr23

getmore4less said:

It looks like 
X+12.07%.
You deduct 10.77% from that total to get back to X. 

You should get that back when you take holiday or finish. 

Just make sure the other deductions are after taking off the holiday pay, that should get tax and NI when paid. 

Yea I think thats right I will get paid it when I take holiday/leave and wont get taxed/NI until then.