Record employee holiday pay

When an employee takes annual leave, you can include their holiday pay in their usual salary, or show it separately on their payslip.

Set up a holiday payment

Set up a new payment for holiday pay. Use our set up and assign payments article to help you do this.

Using a separate pay element makes it easier to report on how much holiday pay each employee receives. 

Process holiday pay

You have two options to pay holiday pay to an employee.

• If you use a Holiday Fund to accrue holiday pay, you can use this to pay your employees when they take holidays instead. Pay holiday fund to an employee
• Or, set up a holiday scheme in payroll. Holiday Schemes

TIP: For help calculating the amount of holiday pay due to your employee, refer to www.gov.uk/holiday-entitlement-rights or ACAS Holidays and holiday pay.