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On my UK payslip in recent months under Earnings I have Basic Pay, Overtime, Call out rate, Pension Deduction and Average Holiday Pay.

I am a salaried full time employee, payed in arrears per month (eg if a month has 30 days in it I will be paid the same as if a month has 31 days) Monthly basic pay is exactly my yearly salary dived by 12. Nothing has changed with my employment. I am entitled to 30 days holiday per year plus bank holidays which are not included on my payslip. I always take the full allocation. I get the same Basic Pay per month despite how many holiday days I take that month. My overtime is paid hourly and call out rate is a flat fixed rate. The Average Holiday Pay amount does not calculate to an hour, day or week payment.

Assuming my request to HR or the accounts dept goes unanswered, what could Average Holiday Pay refer to on my payslip?

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  • Is the Average Holiday Pay the same each month?
    – Jsk
    Sep 29, 2021 at 15:36
  • no it is a different amount each month. not by much but it is different.
    – medina
    Sep 29, 2021 at 15:50
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    Is it possible that "average holiday pay" is designed to bring you up to the correct amount of pay for the month regardless of the month size? For example, the amount you are paid for a day of holiday might vary depending on whether the month has 28 or 31 days in it.
    – DJClayworth
    Sep 29, 2021 at 16:02
  • that's great you have a deal with 30 (!) days holiday! six full weeks!
    – Fattie
    Sep 30, 2021 at 13:01

1 Answer 1

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Since 2014, holiday pay is supposed to reflect non-guaranteed overtime (i.e. if you work occasional overtime they are supposed to assume that you would have worked the same proportion when you are on holiday, and pay you for it). As I understand it this is a setting your employer can enable in their payroll system so at a guess they have recently done so. In this case your "Average Holiday Pay" entry will depend each month on how much holiday you took and how much overtime you did in the previous 12-week period (which is the "reference period" they are supposed to use to calculate the average amount).

There is more info and background here: http://hrnews.co.uk/average-holiday-pay-compliant/

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