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

What this means is that 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.

Guide to setting up holidays as a percentage of hours in Wagesheets

Step 1 

Edit the contract

The first step is to select the Pay holiday as a percentage of hours in Wagesheets option when editing a contract. To do this go to Edit your Contract > Holiday Tab > Earning Holiday dropdown.

Step 2  

Create normal pay element

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 that contract is) via Pay > Pay Settings > Pay Elements > Create a New Pay Element. 

Step 3  

Create a holiday pay element 

Then, you must create a new Holiday pay element. To do this go to Pay > Pay Settings > Pay Elements > Create a New Pay Element. 

Then set up the holiday pay element details. 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 might be named Security Rate (Holiday). You can also choose whether or not to exclude this from pay element from wage sheets which can be helpful for salaried contracts.

 The most important setting here is to mark the element as a hidden pay element, as this prevents people from selecting this option when scheduling.

Step 4  

Setting your holiday pay rate

Then, set the pay type and amount that you want to be paid out for holiday pay. This will probably be set at the same rate as your normal pay rate for the position (but can be different from your main pay element). 

Step 5

After this, you just need to go back to the regular pay element you created and edit it. Under Percentage Holiday Pay, enable the Percentage Holiday Pay Element and select the holiday pay element you have just created. 

Then, in the Holiday Pay % you need to add the percentage by which any holiday needs to be accrued. This means that for every hour worked, that percentage of each hour worked will be added as holiday allowance pay.

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.

All that is left to do is save and you can then add this pay element to the relevant Skills.

Attaching your Pay element to a Skill

Now you have created a holiday pay element and tied it to a Pay Element, you will want to link this to a Skill.

To do this go to Staff > Staff Settings > Staff Skills > Edit Skill to do this. Then, under the Pay tab, choose the add your pay element under the Default Hourly Pay Rate option. This should be the new pay element that has the holiday pay element attached.

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 system will then automatically calculate the holiday pay based on the time entries worked. 

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. If you're not sure how to do this, speak to a member of our Support Team.