Hi all,
I would like to know what is the formula for working out holiday pay.
If it matters the rate of pay is £17.00 per hour and am working 4days on then 4 days off.
Thanks for any replies.
gov.uk/calculate-your-holiday-entitlement
Fill that in and it will tell you your entitlement days or hours based on the days or hours you work.
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Standard holiday entitlement is 28 days for a 5 day week.
22.4 days for a 4 day week based on that calculator from .gov
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On PAYE agency, it is supposed to be 12.07% of your gross earnings - goes into your holiday pot.
This amount, once accrued - doesn’t then decay, a rather unsavoury practice still done by agencies of lower repute.
So if you worked any shift patterns which totalled a weekly pay of say, £600 gross - then you’re weekly holiday pay accrued would be £72.42 per week.
Over an 8 week period then, you’d accrue £579.36, which would then allow you to take an entire week off on practically full pay.
Since 8’s go into 52 weeks a year 6 times - you are effectively on six weeks fully paid holiday per year, accounting for 48 weeks at work to accrue. This permits four weeks at £579.36, and you can use your other two weeks accrued holiday pot to take it as a lump sum… You are not obliged to take actual days off beyond the 20 days a year “Statutory Leave” which is there to make your digicard balance more than anything else, imo.
There’s also no quibble about carrying over this pot amount into a new financial or holiday year…
There’s also no issue telling your agency boss “I’d like two weeks off in July, two weeks off in August, Christmas week off, and I’ll take the other accrued amount on the final pay for the year, 31st March…”…
There are advantages to being agency over full timer directly employed… 
Holiday pay should also include average holiday based on your last 12 week’s pay which should take into account any bonuses or overtime.
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Winseer:
On PAYE agency, it is supposed to be 12.07% of your gross earnings - goes into your holiday pot
Some PAYE agency drivers get 14.54% of their gross earnings as holiday pay. This is where the regular drivers at the site where they work get 33 days leave per annum, and because of pay parity the agency drivers get that pro-rata.
simcor:
Holiday pay should also include average holiday based on your last 12 week’s pay which should take into account any bonuses or overtime.Sent from my CPH2173 using Tapatalk
It’s changed now and should be based on last 52 weeks.
gov.uk/holiday-entitlement- … the-basics
Incidentally that link also that holiday pots/rolled up holiday pay shouldn’t be a thing anymore but hey ho.
If you work for a full calendar year, I believe the entitlement is to 5.6 weeks holiday.
4 on 4 off you are working 3.5 days per week on average, so you would get 19.6 days off.
In terms of the calculation, I believe it is your average over 12 months. Work out what you have been paid per day on average (taxable). I think there are a couple of ways of working this out, some methods may include what you were paid at other times you were on holiday and some may not. These calculations aren’t trivial, but you should be able to work out a rough estimate of what you get paid on average per day (including overtime).
toonsy:
simcor:
Holiday pay should also include average holiday based on your last 12 week’s pay which should take into account any bonuses or overtime.Sent from my CPH2173 using Tapatalk
It’s changed now and should be based on last 52 weeks.
gov.uk/holiday-entitlement- … the-basics
Incidentally that link also that holiday pots/rolled up holiday pay shouldn’t be a thing anymore but hey ho.
Didn’t read that far down tbh didn’t realise it had been changed to 52 weeks.
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simcor:
Holiday pay should also include average holiday based on your last 12 week’s pay which should take into account any bonuses or overtime.Sent from my CPH2173 using Tapatalk
Do you have any proof or reference for that? One of my agencies didn’t accrue me any holiday for overtime (which was only at the same as std time).
Winseer:
On PAYE agency, it is supposed to be 12.07% of your gross earnings - goes into your holiday pot.This amount, once accrued - doesn’t then decay, a rather unsavoury practice still done by agencies of lower repute.
So if you worked any shift patterns which totalled a weekly pay of say, £600 gross - then you’re weekly holiday pay accrued would be £72.42 per week.
Over an 8 week period then, you’d accrue £579.36, which would then allow you to take an entire week off on practically full pay.
Since 8’s go into 52 weeks a year 6 times - you are effectively on six weeks fully paid holiday per year, accounting for 48 weeks at work to accrue. This permits four weeks at £579.36, and you can use your other two weeks accrued holiday pot to take it as a lump sum… You are not obliged to take actual days off beyond the 20 days a year “Statutory Leave” which is there to make your digicard balance more than anything else, imo.
There’s also no quibble about carrying over this pot amount into a new financial or holiday year…There’s also no issue telling your agency boss “I’d like two weeks off in July, two weeks off in August, Christmas week off, and I’ll take the other accrued amount on the final pay for the year, 31st March…”…
There are advantages to being agency over full timer directly employed…
I’m assuming by pot , you mean leave it with the agency then request it when you have a hol ( they get any interest on it ) , I have mine paid in my wages weekly then always put £100 away in my pot / account even if it shows hol pay as £80/£90 or whatever
Same if you fell out & jacked there & then , I doubt they’d be in any rush to pay you it
See the link to the gov website about average holiday pay.
Since the change in law every job I have had paid average holiday pay based on the last 12 week’s pay. Which according to that link now says it is based on the last 52 weeks.
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stu675:
simcor:
Holiday pay should also include average holiday based on your last 12 week’s pay which should take into account any bonuses or overtime.Sent from my CPH2173 using Tapatalk
Do you have any proof or reference for that? One of my agencies didn’t accrue me any holiday for overtime (which was only at the same as std time).
Agency pay may differ. They will get away with anything they can if it avoids paying money out. But ad hoc agency work may come under different rules. Been a while since I’ve been an agency wallah.
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simcor:
toonsy:
simcor:
Holiday pay should also include average holiday based on your last 12 week’s pay which should take into account any bonuses or overtime.Sent from my CPH2173 using Tapatalk
It’s changed now and should be based on last 52 weeks.
gov.uk/holiday-entitlement- … the-basics
Incidentally that link also that holiday pots/rolled up holiday pay shouldn’t be a thing anymore but hey ho.
Didn’t read that far down tbh didn’t realise it had been changed to 52 weeks.
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It was changed so it more accurately reflects an average wage, as opposed to say hammering in hours when it’s hectic between October to Christnas resulting in a high amount of hours worked and paid as holiday in January, compared to a lower amount for taking holiday after a quiet spell.
My pay slip ( agency ) just says , holiday amount = 125.21 ( paid weekly ) no mention of rate / hours etc
dozy:
My pay slip ( agency ) just says , holiday amount = 125.21 ( paid weekly ) no mention of rate / hours etc
That looks like 12.07% on top of your gross pay.
As you say you like it in your pocket rather than theirs. There is one benefit of it building up and being paid out when you actually take holiday is that you have weekly “tax free” amount of £190 for National Insurance and if you get paid nothing for any particular week, then you lose that “National Insurance free” allowance.
(although for you earning over £967 per week your marginal rate for National Insurance is only 3.25% - so that’s all you’re losing out on).
Doesn’t matter if your agency or not your holiday pay is 52wk average or pro rata if worked at a firm less than 52wks.
If your wages average say £600net/week over 52wks a weeks holiday taken should pay the same £600.
Can’t count nightout money or meal allowance in holiday pay but defo regular overtime or bonuses.
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