The Department for Business and Trade’s recent announcement regarding holiday pay calculations has led to relief for Payroll professionals everywhere. The Government’s response to consultations on holiday pay for irregular hours workers has simplified the process, removing the need for employers and payroll staff to decipher complex graphs and time spent calculating average earnings over the past 52 weeks.
The new ruling effective from 1st April 2024, reinstates the 12.07% calculation method. This means that for every hour worked by staff, they accrue holiday leave and pay at a rate of 12.07%. Hours spent manually calculating holiday pay based on various factors is now replaced by a more straightforward approach.
This simplified method should ease the burden on employers and ensure that all workers, including those employed on a casual basis, receive the correct holiday pay and entitlements. At bennettbrooks we can offer Payroll support to suit your business needs. Running a payroll is a repetitive task that takes time and the last thing you want is for it to go wrong. From regular payroll’s to remuneration planning and year end compliance, our team of experts are always up to speed and ready to advise and support.
To find out more about our Payroll services and how we could support your business, please get in touch.
