Holiday pay settings (collective agreement)

Holiday pay settings can be found in Management > Salary info > Holiday pay settings (collective agreement).

It is possible to create own holiday pay settings in which the user can determine which salary types will effect the collection of holiday earnings and which are the holiday earnings multipliers which will be used to calculate the holiday pay. Holiday settings should be switched on in the Holidays view and the Holiday pay setting should be selected so that the setting will effect employees holiday earnings. 

 

 

• Procountor's default setting is called No custom settings. If no other setting is created or selected in the Employee registers Holidays view, this setting will come as default to all employees. 
  • When the amount of the earned holidays is more than 30 days Procountor will automatically put the multiplier 7,2 per holiday days. 
• Own already created collective agreement settings can be modified by selecting the setting from the drop down menu Collective agreement.

 

Creating new holiday pay settings

New holiday pay settings are created when Procountor's default setting is not according to the rules of the company's own collective agreement. 

1. Click Create new button.

 

 

2. Determine the name of the setting and choose which holiday pay calculation basis will be used.

 

The name of the collective agreement must be unique. This means that there cannot be two collective agreements that are named identically. 

 Holiday pay calculation basis:

• Average daily - credit year earnings (basic work + overtime work basic part)/(real working days +1/8 overtime hours)
  • Earnings for basic work are calculated based on collective agreement settings.
  • Salary types that are calculating the for overtime are 1221 and 1220.
• Average hourly - (earned cumulative earnings/ worked hours) x multiplier (multiplier comes based on the multiplier table, how many holiday days were earned during the credit year)
• Percentage - calculated either based on 9% or 11,5%. The percentage is selected in Holidays view. When calculation basis Percentage is selected, software will show pre-filled percentages 9% for under one year employment and 11,5% for over one year employment. At this point it’s possible to edit these percentages. Percentages are not editable anymore once the collective agreement has been created.
  • Please note! This calculation basis is not recommended for Construction holiday pay (18,5%) because the income type is different than what should be used with Construction holiday pay. User will get a notification if 18,5% is added in percentage fields in creation of new calculation basis, but modifying and saving the percentage isn't blocked.

• Monthly with standard divider – divides monthly pay with 25 and multiplies it with the amount of holiday days.

• Monthly plus shift compensations - holiday pay is calculated from monthly part: formula is monthly pay divided by standard divider 25 and from shift compensation part: formula is cumulative earnings from shift compensations during holiday credit year multiplied with percentage that is set when creating the new holiday credit year.
  
  •  Holiday pay is a sum of these two formulas. For monthly part the salary types that are taken into account in calculation need to be added to employee’s salary base.
  • When paying holiday pay the software calculates the monthly pay part from the figures in the current salary slip. This way the holiday pay’s monthly part is always up to date.

• Right for time off – holiday compensation is calculated based on 9% or 11,5%.

The holiday module will be improved during the end of the year 2019 and more option will come soon. 

 

3. Click Save.

4. Select the salary types that will effect hourly workers holiday earning calculation in the Salary types section. If you selected calculation basis Monthly with standard divider, the name of the section is Salary types affecting holiday pay monthly with standard divider.

 

 

• New salary types can be added by clicking Add salary type button which will open the Salary type register. 
• Salary types can be delete from the settings by activating the salary type and clicking Delete row.
• Affects cumulative working hours part is for those earning rules that take the calculation basis based on working hours. This section is not showed if other rules are selected.
  • If there is a tick in after the salary type, this salary type effects the divider of the holiday pay calculation.
  • If there is no tick this salary type effects only the dividend.

5. Holiday pay multipliers can be edited at this point if the multipliers do not match the rules of the collective agreement. The multiplier table cannot be seen if the calculation basis is percentage, right for time off or monthly with standard divider.

• The multiplier table is not editable if the calculation basis is average daily.
• The multiplier table cannot be seen if the calculation basis is percentage. 

 

• When the amount of the earned holidays is more than 30 days Procountor will automatically put the multiplier 7,2 per holiday days. 

6. When all the changes have been made click Save. 

7. Move to the Employee register to activate the created holiday pay setting to the employees. 

 

Editing created holiday pay settings

Already created collective agreements can be edited by selecting the collective agreement in question to the Collective agreement field. The way the edits can be done depends on what kind of edits are wanted to be made.

• If there is a need for editing the name of the collective agreement, click on Edit button, and then edit the name on the opening window. Save the changes with Save button.
• It is not possible to edit the holiday pay calculation basis.
• If there is a need to add/edit the notes, edit the notes ant then save the changes with the Save button.
• If there is a need to edit the salary types affecting to cumulative earnings, make the edits and save the changes with the Save button.
• If there is a need to edit the figures in Multiplier table, make the edits and save the changes with the Save button.
• If any changes are made to the existing collective agreement settings, the holidays must be updated after this on the employee register Holiday tab with the Year recalculation This recalculates the new cumulative holiday earnings for the salary slips on that holiday year with the newly selected salary types.

New collective agreements can be created by copying already existing one with New from duplicate button. Collective agreements can also be deleted with Delete button.