Step by step guide to setting up earn and pay holiday

Earn and pay holiday (also known as holiday roll-up) is a holiday entitlement type that works in the following way. As the staff member accumulates hours worked, a percentage of this will go into their holiday pay. This is a helpful holiday entitlement to use if you want staff to have access to the holiday they earn immediately and to only have access to what they have already earned.

Step 1

Choosing the correct holiday pay type

The first step you must take is to go to Pay > Contracts > Manage Contracts and find your holiday options. To do this you will need to click to edit the contract you want to change.

Then, go to the holiday tab of the contract to which you want to apply these holiday rules.

Go to Earning Holiday options and then select the ‘Pay holiday as a percentage of hours worked in wage sheets.’ 

Step 2

Creating a holiday pay element

The next step is to create a Holiday pay element. To do this, go to Pay > Pay Settings > Pay Elements > Create a New Pay Element.

You will then add details and set this up like a normal pay element, including whether you want to include this element in wage sheets.

Set the rate of holiday pay here - this will probably be set at the same rate as your normal pay rate for the position. 

The most important part is to mark this as a hidden pay element so that it won't appear as an option managers can manually assign to skills.

Step 3

Setting the hourly rate

The next step is to create the regular hourly rate to be used for worked hours (rather than holiday), and add a monetary value. 

On this screen, you need to enable the ‘Percentage Holiday Pay Element’ option and use the dropdown to select the holiday version of the pay element.

Then, in the ‘Holiday Pay Percentage’ box, you need to add the holiday percentage that should be accrued for each hour worked. A common example of holiday pay would be 12.7%. This means that for every hour worked, a percentage of each hour worked will be added to holiday allowance pay.

Step 4

Assigning the pay element to a Skill

Finally, you must then add these newly created pay elements to skills that they are relevant to. Use Staff > Staff Settings > Staff Skills > Edit Skill to do this. Then, under the pay tab, choose the Default Hourly Pay Rate option. This should be the new pay element that has the holiday pay element attached.

When you pay the time entries for normal paid time, the system will automatically add the holiday values owed to the same wagesheet.