Holiday Pay - How is it calculated?

The calulation of Holiday Pay is complex and involves two main factors.

1. The number of days accrued

Holiday Pay entitlement is awarded on a daily basis. If you work for a whole year you will be entitled to 24 days (or 4.8 weeks) holiday. There are 260 available days to work in a year, therefore if 24 days are taken as holiday, only 236 days are actually worked.

Your 'Holiday Year' begins on the day you begin working for us and the number of days you accrue are therefore calculated as:

Number of days since start of Holiday Year    x 24
                       365

The number of days accrue even when you have time off, they only stop accruing when you finish working for Polytec and we issue your P45.

2. Actual amount of holiday pay accrued (in pounds)

For every Standard rate hour that you are paid, Polytec pay an amount into your Holiday Fund. This is your money and will be used to pay your holiday pay. The amount we pay into your holiday fund is determined by the available working days in the year, as detailed in point 1. above:

24    = 0.1016 or  10.16% of your hourly rate, per hour.
236

When you request Holiday Pay - the amount you actually get will depend on how much is in your Holiday Fund and how many days you have accrued, therefore to work out your daily Holiday Pay rate:

Amount of money in your Holiday Fund    =  Daily Holiday Pay Rate
No of days accrued - No. of days taken

Note: Holiday pay entitlement increased from 20 days to 24 on 1st October 2007. All accrued holiday before this date will have been at the lower rate.

Holiday Pay entitlement will increase again on 1st April 2009 from 24 days to 28 days per year