Annual leave as extra payment

[Crystalmazes]

My workplace have requested that I do not take my 5 days worth of annual leave as they are short staffed. They say they will pay me for those 5 extra days instead.

If I am on 80k annually how much extra would I get for those 5 days? I am not entirely sure what calculation I would do. Would it be 80,000/365 × 5?

I think you should deduct weekends from your number of days calculation so maybe 80k/260x5?

Not an expert but for me it wouldn't be divided by 365 as I don't work weekends.

aroubd 260 days usually, as ignore weekends.
so 80000/260*5

80k ÷ 52

Then divide the answer by 5 for your daily rate.

deduct weekends, annual leave quota and 8 bank holidays. that gives you your day rate. It will be something like 80k/240

This is what I would do

Will this account for bank holidays and weekends?

Do you work a five day week? If so it's just 80000/52

Do you work 5 days a week so the 5 days they are asking you not to take are a working week?

if so I would do £80k / 52 weeks which would give you your weekly rate of pay so I’d imagine that’s what they’d pay you.

you’ll obviously end up paying a bit more in tax though as you’ll be getting paid more.

Bank holidays yes (assuming PP is paid for them if they're salaried).

Weekends no as the 80k ÷ 52 = weekly pay

1538 (weekly amount) ÷ 5 = £307.5

Daily rate is £307.5

Yes I do. Will that account for not working weekends?

Also is holiday pay given as gross or net pay?

So I should get £1538?

Would they give this as gross or net pay post tax?

It will be gross with tax and NI deducted. No different to working additional hours

Check your contract, it may well how a day is calculated eg in the section about pay in lieu of notice

My employer bought some annual leave back from me and I got taxed so much! I think you would be ok as you are in the middle of a tax bracket, but it bumped me over and I got less than half of the net amount.

Yes that's correct, then this is taxed at your normal rate.

You'll probably earn about an extra £900 after deductions.

https://www.thesalarycalculator.co.uk/salary.php

Put your details into there and put £1538 as a monthly bonus to see the estimated outcome.

But when your paid your salary it is shown as gross first on pay slip in first area. Would holiday pay be shown in this way or would it be shown as £900?

You’ll get £892 after tax

Thanks on pay slip would it show £900 or £1538?

If they pay you for those 5 days you will have to pay tax on that figure. Id ask them to either cover your tax or roll over the days into the next holiday year. The second option should be the preferable option for all.

I would ask to carry them forward ….

Presumably 1538 and then your deductions would be higher than normal to account for the extra tax, NI, pension contributions etc

Do not use that calculation.

52.2 weeks in a year x 5 working days a week = 261 working days.

£80,000 / 261 =£306.51 per day x 5 = £1,532.57.

Is that what will be shown on pay slip or the gross value first?

Pay slip shows gross payments and deductions plus net pay.