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With 72.61% of respondents paying normal pay for all annual leave, these results show it is easier to calculate one rate of pay for all annual leave, which removes two different calculations and extra processes, in an already complex and time-consuming process. Will we see an increase to this outcome next year, now more payments need to be taken into consideration for the calculation of normal pay?
The new holiday pay legislation takes effect for leave years starting on or before 1 April 2024, the new regulations define normal remuneration:
● Payments intrinsically linked to performance of work ● Payments relating to professional or personal status ● Regular payments such as overtime in the preceding 52 weeks.
The new legislation means that more payments now need to be taken into consideration when paying employees their normal rate of pay whilst on annual leave.
PAY ELEMENTS INCLUDED IN HOLIDAY PAY CALCULATION
HOLIDAY PAY TOP UP WEEKS
11% A combination based on clients preference
16% Regulation 13 leave only (4 weeks)
Overtime 84%
56%
34%
Shift premium
Bonus
14%
33%
19%
Other
Commission
Car allowance
73% All leave up to 5.6 weeks
Note: Last year’s survey looked at elements that are excluded from the calculation of normal pay. This year the question has been changed to included elements used in the calculation. This method provides a clear understanding if the requirements are being met for the complex and ever changing holiday pay rules
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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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