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Use this page to add, update and delete company holiday scheme information.
Contents
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52 Week Calculation
Hourly and Daily Scheme
Average Rate – This is all the qualifying pay earned in the reference period divided by the number of hours.
- For example if an employee earns £5200 over a 52 week reference period and works 520 hours the hourly rate calculation would be
5200 (total pay) / 520 (number of hours) = £10 (average hourly rate)
Periodic Scheme
Average Rate –This is all the qualifying pay earned in the reference period divided by the reference period and the number of days per period, as specified by selecting the scheme type.
- For example if an employee earns £5200 over a 52 week reference period, the calculation of the daily rate will be
5200 (total pay) / 52 (number of reference periods) / 5 (days in period) = £20 (average daily rate)
The key point to recognise with both the above schemes is that only periods where the worker has pay against a holidayable component are included in the calculation. Therefore the reference period to retrieve pay may stretch back further than 52 weeks and could be as long as the 104 week maximum allowed.
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