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Holiday pay Holiday pay continues to be a contentious, complicated admin burden for payroll professionals.
The main cause of confusion is that holiday pay and holiday entitlement are two separate parts of the puzzle, each with different calculation methods, which is creating the risk of errors and non-compliance.
THE MAIN CAUSE OF CONFUSION IS THAT HOLIDAY PAY AND HOLIDAY ENTITLEMENT ARE TWO SEPARATE PARTS OF THE PUZZLE, EACH WITH DIFFERENT CALCULATION METHODS
This year’s results shows a 6.84% decline in respondents that are calculating holiday pay as instructed by government guidance. However, calculations included in ‘other calculation method’ responses may achieve a compliant result.
HOLIDAY PAY REFERENCE PERIODS
Holiday is calculated using 52-week reference period (up to 104 weeks for unpaid weeks)
Holiday is calculated using 52-week reference period (max 52 weeks regardless of unpaid weeks)
41%
27%
Holiday is calculated using 12-week reference period
Holiday is calculated using an alternative reference period
6%
5%
Holiday is not calculated using an alternative reference period
18%
20%
Other calculation method
VIEW YEAR-ON- YEAR DATA
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In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.
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