Hi, I know you accrue holiday entitlement during Mat leave and can use it after your maternity leave has ended and before you return to work.

I have to calculate payroll for an employee who took two weeks annual leave before returning to work. The employee is coming back part-time (her decision) so her salary is now pro-rata. My question is what rate is the annual leave paid out as? The weekly salary that she earned prior to going on Mat leave or new salary?

As you can tell I don’t work in HR but part of my job responsibility is calculating payroll, to send to the third party company that processes it. I’ve done this is in other roles but I have never dealt with someone on/returning from Maternity leave. Thank you!

4 comments
  1. The actual holiday pay calculation is based on the average 52 weeks earnings. In short, you shouldn’t be paid less when you’re on holiday then what you’d get if you were working.

    Hope this makes sense.

  2. It’s the same salary when it comes to leave, unless her actual calculated daily/hourly rate has changed.

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