The Chartered Institute of Payroll Professionals
News On Line
Method used
Worker type and situation
Treatment
NO CHANGE
Worker receives 5.6 weeks annual leave entitlement. If earnings fluctuate due to regular overtime, bonus or commission payments, you calculate a 52-week average and pay this when the holiday is taken. If earnings never change, I.e., for salaried workers, you pay their basic rate of pay when holiday is taken.
Full time or full year worker
Standard
Irregular hours or part year worker
Accrue 12.07% of hours worked in each pay period.
Accruing entitlement
Pay is paid as per the 52-week average when the entitlement is exercised.
Worked pay period
1. Calculate the average number of hours worked in the prior 52 weeks, if less than 52 weeks available use that amount. a. Discount weeks where the worker was on sick leave or statutory leave. b. Include all other weeks, even if no work completed in that week. c. If weeks are discounted go back up to 104 weeks to obtain a 52-week average. 2. Calculate 12.07% of the hours arrived at in step 1. 3. Multiply the number of hours by the number of weeks in the pay period relating to sickness or statutory leave.
Irregular hours or part year worker
Accruing entitlement
Sick or statutory leave
Pay 12.07% of eligible earnings as an uplift for each pay period.
Irregular hours or part year worker
Rolled-up holiday pay
Entitlement must be used as normal, however, pay will not be given at the time of exercising the entitlement.
Worked pay period
Take an average of the holiday pay element paid to the worker in the previous 52 weeks, if less than 52 weeks available use that amount. Multiply the number of hours by the number of weeks in the pay period relating to sickness or statutory leave
Irregular hours or part year worker
Rolled-up holiday pay
Sick or statutory leave
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Take a step towards reforming statutory sick pay (SSP) Published: 14 November 2023 Emailed: 15 November 2023
The Work and Pensions Select Committee is conducting an inquiry looking into the current effectiveness of statutory sick pay (SSP) in supporting claimants and if SSP should be reformed to better enable a recipient’s recovery and return to work.
cipp.org.uk
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