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Calculating Authorised Unpaid deductions / Buying Extra Holiday

Fiona

| 0 Posts

25 Jun, 2024 15:06

Hi there

I would be interested in knowing how colleagues calculate deductions for authorised unpaid absence.  Also calculations for buying extra holiday.

The company I work for currently calculate both of these at a cost of 1/227th of annual salary per day.  I am struggling to get my head around this and would welcome what the best practice is for working out these deductions or buy in.

In a previous organisation I worked for the simplest way was calculating the daily rate ie annual salary / 52 weeks / 5 working days (not sure if this was correct!!) but seemed to work.

many thanks

Fiona

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  • Sarah

    | 0 Posts

    25 Jun, 2024 16:02

    Hi Fiona,
    Our HR and payroll systems do annual salary / 262 (number of working days in current work pattern over 52 weeks).
  • Elizabeth

    | 0 Posts

    26 Jun, 2024 10:46

    I'm guessing your company has taken off the number of holidays/bank holidays before calculating the daily salary. I would divide by 260 for a full time worker and specify this in our contracts so that there is no room for dispute.