Just out of interest, how is everyone calculating "top up" pay for holidays e.g. bank holidays during furlough periods?

Given that the "normal" method of calculating holiday pay is based on working days e.g. daily rate = annual pay dividend by 260 for a full time worker, and HMRC's furlough pay calculations are based, nonsensically, on calendar days each month...

I might be overthinking it, but my brain hurts with all this guidance!

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I've done what I think's fair and if HMRC come round to check it, I'll tell them "you tell me what you think and if we disagree by enough, we'll have a chat."

Life's too short and HMRC changed their minds too often and too late.

Agree whole heartedly. These so called rules and regs that morph over a period of time can totally be misinterpreted. I too would say I have done my best.

For the 2 May Bank Holidays my calculation is as follows for an employee who normally works 5 days pw, is on an annual salary of £24,000 and has agreed to accept 80% pay whilst on furlough:

Holiday pay for the 2 days is £24,000 x 2/(52 x 5) = £184.62

“Normal” furlough pay for those same 2 days is £24,000/12 x 80% x 2/21 = £152.38

“Top-up” for the 2 days = £32.24

My reasoning is that there are 21 weekdays / potential working days during May 2020.

I believe that the fact that the maximum CJRS grant refers to calendar days, i.e. 31 days for May, is not relevant to the holiday pay calculation. Otherwise, as you suggest, we would be comparing apples and pears. I think that my method enables us to compare apples and apples (or it may be pears and pears) - and that's assuming anyone gives a fig.

Anyone else have any thoughts on this, please?

Thank you for this, something I had begun to wonder this month but hadn’t progressed yet. I will apply your logic, it seems fair and solves the apple to pear conundrum.

I originally got to the same answer using your example John. My issue with this method arises if you consider a full pay period (weekly or monthly) on holiday you end up topping up more than a normal pay rate.

Taking your example, 21 working days with top-up of £32.24 x 21 = £677.04

Original pay for the month at furlough rate is £1,600

Total gross pay is now £2,277.04. £277.04 higher than a normal pay period.

Extreme example I know with an employee taking an entire month, but is much more applicable for weekly paid employees.

I originally got to the same answer using your example Pandora. My issue with this method arises if you consider a full pay period (weekly or monthly) on holiday you end up topping up more than a normal pay rate.

Taking your example, 21 working days with top-up of £32.24 x 21 = £677.04

Original pay for the month at furlough rate is £1,600

Total gross pay is now £2,277.04. £277.04 higher than a normal pay period.Extreme example I know with an employee taking an entire month, but is much more applicable for weekly paid employees.

I wouldn't calculate it that way. It's stupid.

If you're going to calculate furlough on the basis of a seven-day week, you need to calculate holiday pay on the basis if a seven-day week. Instead of 28 days, it's now 39.2 days but at a lower daily rate.

HOWEVER there is still the complication of weekends where you do not have a full month. E.g. if there were 2 weeks' annual leave, I think to get the right answer under the calendar days method you would have to count the weekends in between..?!?!

Yes, that's my point.

At the moment you are paying the employee a reduced amount per month.

You need to calculate what his normal rate of pay would be for each day of holiday.

I would use working days for both those calculations.

What you get or not from the government is neither here nor there for this.

The employee needs to get is normal daily rate for his holidays.

I used the normal rate of daily pay because its what the EMPLOYEE is entitled to then worked out 80% of this and topped up the difference .

So on £24000.00 i would have said £91.95 ( 261days) per day the govt technically give you £73.56 so i would pay £18.39 as top up per day.

I give up!

I gave up a month ago.

That cannot be correct, surely.

You divide the amount you 'have' paid by the days worked, and the amount you 'should' pay by the days worked and pay the difference.

The fact that the government chose what to re-imburse with regard to furlough does not matter.