Is the cost of extra annual leave being calculated correctly?

wendb69

MacMickster said:

Your employer is paying you to actually attend work 230 times per year. If you want an extra 10 days off then of course it is going to cost you 10/230 of your salary.

Think about how much they should charge you if you wanted to buy 230 extra days holiday.

Isn't it that the employer pays me for 260 days of the year?

Undervalued

wendb69 said:

MacMickster said:

Your employer is paying you to actually attend work 230 times per year. If you want an extra 10 days off then of course it is going to cost you 10/230 of your salary.

Think about how much they should charge you if you wanted to buy 230 extra days holiday.

Isn't it that the employer pays me for 260 days of the year?

Not really, that is the point I was making in my earlier post.

Yes, they pay you for 260 days but you only actually work for 230 days because the other 30 days are paid holiday. As I mentioned, for every ten days actually worked you effectively get (in round figures) 11 days pay as you accrue a day's paid holiday.

So, if you now start taking 10 days off unpaid you will only actually work on 220 days so you either accrue one day less paid holiday or you salary needs to reduce by 11 days per year to compensate.

The_Unready

I work for an LA and we can buy additional leave.

For an employee on a 37 hour, full-time week the cost is calculated as follows:

Salary x 7 / 365

So, for a salary of £37,400 the cost of an additional week's leave would be £717.26.

Figures provided for comparison only.

The_Unready

To add that my LA's calculation is nearly exactly the same as your calculation using 260 days as a base (within £2).

Given that, I suggest that they may be 'over-charging' you by nearly £94 per week.

theoretica

r6mile said:

My employer (Civil Service) calculates the rate for extra 'annual leave' - which we could buy a week's worth this year as part of a one-off offer - at 1/260 of annual salary per day.

But for some reason, unpaid leave (such as unpaid parental leave) is deducted at 1/365 of annual salary.

Is that normal?

I suspect because the unpaid leave is often a legal right (and if people take a month do they count weekend or other non working days too?) so the comments above about accruing wages daily apply.  But buying extra holiday is an agreement, so the employer can offer different terms so long as they meet the minimum wage.