Holiday Pay As You Go


How do I set up an employee so they receive their holiday pay as you go (HPAYG)? Should I just set their leave rate to 0% and increase their pay rate?


Holiday Pay should be shown as a separate item on the payslip, so instead of including the holiday pay in an employee's pay rate and setting their Holiday Pay % to 0, you should add the Holiday Pay separately.

Under Setup > Employees, Edit the employee and and select the Default Pay tab to see default pay codes for this employee. Click the arrow on the drop-list and scroll down the list of pay codes to select Holiday Pay, then click Add.

Holiday Pay will be added as a default pay code for the employee. Leave the rate and quantity as 0. The Rate and Quantity will be automatically calculated by FlexiTime when a pay is created. 


Ensure the employee's normal rate is excluding holiday pay, and the Holiday Pay % on the employee's Leave tab is set appropriately (usually 8%).

When you run a pay now, the employee will have a separate line on their pay slip for the holiday pay. No annual leave or holiday pay will accrue.

For information about when pay as you go provisions can be used please refer to the MBIE website.

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    Wich holiday pay code will this be?

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    Robert Owen

    The pay code is HP - Holiday Pay. When you add it to an employee's default pay codes it will be included in their next pay, this will cause all accrued holiday pay for the employee to be paid out and their annual leave accrued in advance balance to reduce to zero. 


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    Peter Davis

    DoLlink didn't work for me. This might be useful to othes

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    Robert Owen

    Thanks for that information Peter. I've updated our link.