To calculate holiday pay based on average earnings in PeopleXD Payroll, you can use enhanced holiday pay. To set this up, you need to configure global settings, pay group and pay code parameters, rules and inclusions.
Configure global settings
To control when enhanced holiday pay processing begins and which employees to include in calculations, follow the steps below.
From the dashboard menu, select Payroll Dashboard.
Click Settings then click Enhanced Holiday Pay.
Click Actions then click Edit Holiday Pay Effective Date.
Update the following fields:
Holiday pay effective date: The date enhanced holiday pay processing begins. Annual leave only processes after this date.
Holiday pay inclusion type: The reference field that identifies employees for calculations, such as job title, position, or department.
Use standard contract rate: If required, to calculate based on contracted hours rather than FTE hours, turn this on. This only applies to salaried employees.
Statutory cap multiplier: Overwrites the entitlement hours assigned to the pay group when used with holiday pay rules.
Click OK.
Configure pay group parameters
To control how to calculate and record holiday pay for each pay group, including the calculation method, output pay codes, and annual leave year dates, you need to set the pay group parameters.
From the dashboard menu, click Payroll Dashboard.
Click Settings, then click Enhanced Holiday Pay.
Click the Pay group parameters tab, then search for the relevant pay group.
Click the three-dot menu, then select Edit Row.
Update the relevant fields, as per the table below.
Click OK.
Field | Description |
Calculation Method | To use average earnings, select Average. To use the employee's contract rate, select Contractual. |
Core Time Used for Holiday Recording | If you record annual leave in PeopleXD Workforce Management, turn this on. If you record in PeopleXD Payroll, turn this off. |
Processing Range | To use payroll period dates, select Period Range. To use submitted holiday dates, select Date Range. |
Include Public Holidays | If required, to count public holidays as annual leave days, turn this on. |
Holiday Pay History Weeks | Enter the number of weeks to look back when calculating average pay. This is typically 52 weeks. |
Standard Holiday Pay Output Pay Code | Enter the pay code for standard holiday pay top-up. This is a requirement for timesheet employees. |
Enhanced Holiday Pay Output Pay Code | Enter the pay code for the enhanced holiday pay element. This is a requirement for all employees. |
Annual Leave Start Date | Enter the annual leave year start date. |
Annual Leave End Date | Enter the annual leave year end date. |
Include Salary EE's Absence Validation | To include salaried employees in skipping weeks, and bring absences from PeopleXD Workforce Management as separate records, turn this on. |
📌 Note: If you use PeopleXD Workforce Management for annual leave, your annual leave calendar settings apply. If you use PeopleXD Payroll, the dates you enter roll forward for future years.
Configure pay code parameters
To identify which pay codes trigger holiday pay calculations and which earnings contribute to the standard and enhanced rate calculations, you need to set the pay code parameters.
From the dashboard menu, click Payroll Dashboard.
Click Settings, then click Enhanced Holiday Pay.
Click the Pay code parameters tab, then search for the relevant pay code.
Click the three-dot menu, then select Edit Row.
Update the relevant indicators, as per the table below.
Click OK.
Indicator | Description |
Holiday Pay | Turn this on for the pay codes you want to use to record annual leave. This triggers the holiday pay calculation. |
Holiday Pay Element | Turn this on for the pay codes you want to use to calculate the standard rate of pay. |
Enhanced Holiday Pay Element | Turn this on for the pay codes you want to use to calculate the enhanced rate of pay. |
Exclude Pay Code | Turn this on for the pay codes you want to exclude from calculations. |
Exclude Hours | Turn this on for the positive input employees where you want to include overtime values but exclude hours. |
📌 Note: For salaried employees, the holiday leave pay code needs a multiplier of 1. For timesheet employees, it needs a multiplier of 0.
Configure holiday pay rules
Holiday pay rules determine how many days or hours are paid at the enhanced rate.
From the dashboard menu, click Payroll Dashboard.
Click Settings, then click Enhanced Holiday Pay.
Click the Holiday pay rules tab, then search for the rule element.
Click the three-dot menu, then select Edit Row.
Enter the enhanced holiday pay days or hours, as required.
If required, to calculate for part-time employees, turn on Apply FTE Proration.
If required, to overwrite the pay group entitlement hours, turn on Statutory Cap.
Click OK.
⚠️ Important: The system works on one rule type only. If you create a new rule with a different rule type, this overrides the previous rule.
Configure inclusions
To determine which employees to process in holiday pay calculations, based on the reference rule type in global settings, you can set inclusions.
From the dashboard menu, click Payroll Dashboard.
Click Settings, then click Enhanced Holiday Pay.
Click the Inclusions tab, then search for the rule element.
Click the three-dot menu, then select Edit Row.
Turn on Holiday Pay Inclusion, then click OK.
Configure absence pay parameters
To exclude periods from the holiday pay average calculation, you can set absence pay parameters.
From the dashboard menu, click Payroll Dashboard.
Click Settings, then click Absence Pay Parameters.
From the drop-down menu, select the relevant company code.
From the Select Detail drop-down menu, select Absence Types.
For each relevant absence type, turn on Holiday Pay Inclusion.
Click Save.
📌 Note: If a period within the previous 52 weeks contains an absence type marked as included, the calculation skips this period and uses an earlier period instead. PeopleXD looks back up to 104 weeks.
Configure payslip display
To group how holiday pay payments display on employee payslips, you can use the Payslip Pay Code rule.
From the dashboard menu, click Payroll Dashboard.
Click Settings then click Pay Codes.
Search for the relevant pay code, then click the three-dot menu.
Select Edit, then click Step 2 Rules.
Click Add then, select Payslip Code Override from the Rule drop-down list.
Update the Value, then click OK.
Click Next, then click Save.
Menu options required
To access the enhanced holiday pay configuration screens you need access to the following menu options:
System | Menu Option |
CorePortal Pay |
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