Navigating the Upcoming Changes To The Holiday Pay Landscape

Introduction:

As the employment landscape evolves, so do the regulations surrounding compensation, including holiday pay. One significant development in this realm is the re-introduction of the 12.07% holiday pay rule, and even better the simplification of this in tandem with rolled-up holiday pay.

In the past, employees patiently accrued holiday pay for every hour worked, with payouts processed upon request. For the employer, this may have meant completing periodic holiday accruals, keeping cash aside and completing complex holiday pay calculations.

So, what's the big change, you ask?

For holiday years beginning April 1st 2024 and beyond, holiday pay for variably paid employees can be calculated & paid at 12.07% of the total pay received at the end of each pay period. This game changing ruling simplifies the process for all and is celebrated by businesses across the country.

Here are the key details:

• Employees holiday pay can now be calculated based on 12.07% of the total pay received at the end of each pay period.
• A separate line on their payslip will display the holiday pay for transparency and easy tracking.
• When employees take their well-deserved time off, there won't be an additional holiday payment, as they will already have received it periodically.

Just remember that employers may need to review their contracts of employment to ensure these changes can be made. That said, any impact this may have will be mitigated by a much smoother and less costly holiday process.

Austin Hilton-Ball
Payroll Ops Director