Buying Unpaid Leave

beatthebookienet

What is your opinion on buying extra holidays back as unpaid leave? My company encourages us to take 5-10 days per year. The cost is spread throughout the year.

My basic salary is £28k but expected to be around £35k with both mandatory and voluntary overtime.

For me personally I feel

Advantages:
Reduces tax, NI and student loan (I pay 9% extra tax above £25k for my student loan repayments which will likely never be paid off).
Should cost me net <£800 per year including pension losses, this can easily be made back through voluntary overtime.
Less time spent at work on basic pay vs overtime rates.
Gives me a break after mandatory overtime of long shifts at certain times of the year.

Disadvantages:
As a relatively new employee, I can't help but feel it reflects bad on me to colleagues and my manager although they also take part in the scheme.
Slightly reduces my basic income on paper for getting a mortgage.

Other than aiming to get a mortgage soon, I won't miss the salary sacrifice as I have low living expenses and local house prices are relatively affordable 

El_Torro

I wouldn’t worry about it reflecting badly on you, especially if your colleagues already do it. The scheme is there to be used after all. 

If you can afford it and you want the extra time off then I don’t see why you wouldn’t do it.

goater78

Companies like employees to buy holidays as it reduces their wage bill.

Simon11

beatthebookienet said:

Disadvantages:
As a relatively new employee, I can't help but feel it reflects bad on me to colleagues and my manager although they also take part in the scheme.
Slightly reduces my basic income on paper for getting a mortgage.

Both are meaningless disadvantages- mortgage company won't know about if you take this.

The only disadvantage that you have missed is that your take home pay will be slightly lower, however I have always brought all the leave I can. I live for life, not work!

Undervalued

A friend, in her last five or so years before retirement, agreed with her employer to forgo annual pay rises and instead increase her paid annual leave in proportion. She enjoyed travelling and it provided a nice transition. In fact she continued to do small amounts of "locum" type work for them for several years after retirement which suited both very well.

MrsStepford

The majority of employees in UK are legally entitled to 28 days paid holiday per year. Shift workers and part-time workers' holiday entitlement may differ. However, employers can choose whether to include public holidays in the holiday entitlement or add it as extra holiday. 

25 days with public holidays included would be below the statutory minimum. 25 days plus public holidays would be generous. 

Employers will likely be keen on employees taking extra leave if it saves them money. Encouraging pensioners to take big lump sums can reduce the annual pension they have to pay them.