Pay holiday as a percentage of hours

Pay holiday as a percentage of hours in Wagesheets

This is also known as holiday roll-up. This means that as the staff get paid for hours worked, they also get paid a percentage of their hours for holiday pay.

Understanding holiday as a percentage of hours in Wagesheets

They can request time off, but this will not use any holiday entitlement. Instead, holiday pay will be accumulated by the hours worked at the rate set by your company. For example, a common option would be 12.7% of hours worked calculated at the 'Holiday Rate'.

This type of holiday can be useful for irregular-hours workers and part-year workers, as it allows them to 'accrue' (build-up) holidays.

Implementing holidays as a percentage of hours in Wagesheets

The first step is to select the ‘Pay holiday as a percentage of hours in Wagesheets’ option when editing a contract under Contract > Holiday > Holiday Options.

The second step is to make sure you have created a regular pay element first (This lets the system know what the pay rate/hourly rate for each contract is) via Pay > Pay Settings > Pay Elements > Create a New Pay Element. 

Then, you must create a new Holiday pay element and mark it as a hidden pay element, which prevents people from selecting this option when scheduling.

Tip: If you are using multiple holiday entitlement options for different contracts, It is helpful to name the holiday pay elements something specific to the pay element and contract you want to link them to. For example, for a pay element called 'Security Rate', title the holiday pay rate 'Security Rate (Holiday)'

Then, set the pay type and amount that you want to be paid out for holiday pay (This can be different from your main pay element).  After this, you just need to add the value to your main pay element by editing the element. 

Once this has been completed, you need to enable the ‘Percentage Holiday Pay Element’ by selecting the holiday version of the pay element. Then, in the ‘Holiday Pay %’, you need to add the percentage by which any holiday needs to be accrued.

For example, this might look like this: Staff will get paid 12.7% of an hour* (at the holiday rate that you set) for every hour worked.

*If set at 12.7% and at an hourly rate.

Holiday Pay & Wage Sheets

Once the pay elements have been attached to the relevant skills/roles and assigned to shifts, they will be converted into time entries.

The time entries will then be added to the wage sheet, which will create the holiday time entries and process them for payment.

Within the wage sheet setup, you can choose to split the holiday time entries into a different wage sheet or include them in the actual wage sheet.

Sometimes, people choose to split these out as they pay the holiday payments in bulk annually or quarterly.