Holiday pay

Until you set a holiday pay policy, Maliru pays every hour of paid leave at the rate in force that day, and a day of leave on a day rate at the day rate. Where the law asks for more — in the UK, for example, holiday pay must include regular overtime — set up buckets under Pay › Holiday pay.

You need the Manage pay rates permission.

Buckets

A bucket is part of the leave year with its own way of paying. Add a bucket asks for its name and what it is Paid at:

• Basic pay — the rate for the time off.
• Current pay plus average — the rate for the time off, plus the average of the person's variable pay (overtime, premiums, piece work, bonuses) over their last paid weeks: 52, unless you change Average over (paid weeks). Weeks with no pay are skipped, and it looks back no further than twice that many weeks. Fixed pay is never averaged, so an older, lower rate can't water down a pay rise.
• Rolled up — a percentage, Added to every hour (%), on top of pay for time worked: plain time, overtime, premium time and days worked. It is a line of its own, such as Rolled-up holiday pay (12.07%), and leave taken is then not paid again.

What a bucket is paid at is fixed once it is made. Its size, Weeks of the year, is counted in weeks of the person's own contracted week; leave it empty for the rest of the year. Who may use it says which workers it is for: regular hours, irregular hours or part of the year, which comes from each person's work pattern.

Holiday uses the buckets in order through the leave year, counting holiday already taken that year, and leave beyond the last bucket is paid at basic. Only your holiday leave type fills the buckets: other paid leave, such as paid sick leave, is paid at basic.

Somebody on a salary is paid for their holiday by their salary, so a normal-pay bucket adds only the averaged part on top. Somebody on a day rate is paid their day rate for each day of paid leave, half of it for half a day, with the average added for each day in a normal-pay bucket.

The UK preset

With nothing set up, the screen says Leave is paid at the basic rate and offers the United Kingdom preset, with the date its figures were last reviewed. Use these sets up:

• 4 weeks at normal pay (current pay plus the 52-week average) and 1.6 weeks at basic pay, for regular-hours workers;
• rolled-up holiday pay of 12.07% for irregular-hours and part-year workers, for leave years starting on or after 1 April 2024.

Build your own starts from nothing instead.

The preset is a starting point, not advice. Check the figures against what your workers are owed and press Confirm. Until you do, the screen says These figures are not confirmed, and a pay run with employees on it won't be worked out. Adding, changing or removing a bucket, even renaming one, asks for confirmation again.

Rolled-up holiday pay is offered only to the workers an adopted preset allows: under the UK preset, irregular-hours and part-year workers. With no preset adopted it can't be set up at all, and a run refuses it if it ever reaches anybody else.

Start again from United Kingdom replaces every bucket with the preset's. Pay all leave at basic removes the policy.

On the run and in the file

Each bucket pays on a line of its own, such as Holiday pay (normal pay), and reaches your payroll provider under its own key, shown under the bucket as, for example, line holiday_pay:normal. The key is fixed when the bucket is made, even if you rename it, so your provider's mapping keeps working. See setting up your payroll provider.