Visma Lön Smart
Calculate holiday terms
When taking out holiday, holiday pay should be paid instead of ordinary pay. According to the Annual Leave Act, the holiday pay can be calculated in two ways; through the same salary rule or the percentage rule. In Visma Lön Smart, these calculations are made using different holiday terms. Depending on which holiday term that has been selected, the calculations will be made based on either the same salary rule or the percentage rule.
You can customise the holiday terms to follow your company's collective agreement. The setting for each holiday term are set under Settings - Payroll settings and the Holiday tab. Read more in the topic Payroll settings.
Under Lön Smart - Employees and the Holiday tab, you enter which holiday term each employee should be linked to. Read more in the topic Add or edit employee information.
Here we describe which formulas that are used when calculating the different holiday terms.
Holiday term 10 - Annual Leave Act, employed with holiday pay per day
Holiday term 10 is used for hourly and salaried employees and is calculated according to the percentage rule.
This is how the different calculations are done. Under Values in the calculation formulas you can see where in the program the values are retrieved from.
Holiday leave
The calculation of holiday is done according to this formula:
((duration of employment in whole calendar days - non-holiday accruing leave whole calendar days) / days of the year) * holiday entitlement = paid holiday
The holiday is always rounded upwards to full days.
Holiday pay per day
The calculation of holiday is done according to this formula:
((holiday accruing pay + holiday accruing variable pay + valuation of hours of leave) * holiday pay %) / paid days of holiday = holiday pay per day
Valuation of leave
Under Settings - Payroll settings and the Holiday tab you can choose whether you want to use the average hourly wages instead of the calculated hourly wages when valuating holiday accruing leave.
Option 1 The valuation of hours of leave = holiday accruing hours of leave * average hourly wages
Option 2 The valuation of hours of leave = holiday accruing hours of leave * hourly wages / basic hourly wages
Average hourly wages
When there is holiday accruing pay, the average pay is calculated according to the following:
- holiday accruing pay / holiday accruing working hours, in hours
- Hourly employee who does not have holiday accruing pay: Hourly wages
- Salaried employee who does not have holiday accruing pay: Monthly salary / Agreement period
Saved holiday pay per day
According to the Annual Leave Act, saved holiday pay per day is calculated according to this formula:
(total holiday accruing pay + valuation of hours of leave) * holiday pay %) / paid days
For temporary part-time employment, you use this formula for calculation:
((holiday accruing pay + holiday accruing variable pay + valuation of hours of leave) * holiday pay %) / paid days of gross holiday = gross holiday pay per day
gross holiday pay per day * (weekly working hours in days full-time / average weekly working hours in days) = net holiday pay per day
Holiday deduction
For salaried employees a day's deduction by 4.6 percent of the salary is made when holiday is taken out. The employee will receive holiday pay.
For hourly employees no deduction is made, but a holiday pay per day is paid.
The calculation is made according to this formula:
- (monthly salary after salary exchange * 4.6% / total time according to the work schedule * remaining time after any other leave)
Total time according to the work schedule * remaining time after any other leave, is only used in the formula if the employee also has registered a part-time leave during the holiday, for example if they are on 50% sick leave.
Total time according to the work schedule = total schedule hours during the period the employee is taking out holiday
Remaining time after any other leave = total schedule hours during the period the employee takes out holiday - total part-time leave during the same period
Holiday pay liability
The calculation of holiday pay liability is done according to this formula:
((holiday accruing pay + holiday accruing variable pay + valuation of hours of leave) * holiday pay %) / paid days of holiday = holiday pay per day
Values in the calculation formulas
|
Employment time, whole calendar days |
|
| Non-holiday accruing leave, whole calendar days |
This could for example be leave of absence or sick leave over 180 days and the value is retrieved from Lön Smart - Employees and the Holiday tab. |
| Average weekly working hours in days |
The value is based on the schedule selected for the employee in Work schedule under Lön Smart - Employees, the Employment tab. |
| Basic hourly wages |
The value is retrieved from the field Calculated hourly wages under Lön Smart - Employees and the Pay tab. |
| Monthly salary |
The value is retrieved from the Full-time salary field under Lön Smart - Employees and the Pay tab. |
| Holiday accruing leave hours | The value is retrieved from Lön Smart - Employees and the Holiday tab, and pertains to the total pay, paid using pay codes which affect the accumulator Holiday accruing leave. |
| Holiday accruing pay |
The value is retrieved from Lön Smart - Employees and the Holiday tab. |
| Holiday accruing variable pay | The value is retrieved from Lön Smart - Employees and the Holiday tab. |
| Holiday pay % |
The percentage for holiday pay is primarily retrieved from the Holiday pay % field under Settings - Payroll settings and the Holiday tab for the holiday term. You can also enter a personal percentage per employee. This is done under Lön Smart - Employees on the Holiday tab, by checking Own |
| Holiday entitlement | The value is retrieved from Lön Smart - Employees and the Holiday tab. |
| Average hourly wages |
Holiday accruing pay and potential leave: holiday accruing pay / holiday accruing working hours in hours = average hourly wages No holiday accruing pay and hourly employee: hourly wages = average hourly wages No holiday accruing pay and salaried employee: monthly salary / agreement period = average hourly wages |
| Hourly wages | The value is retrieved from the field Hourly wages under Lön Smart - Employees and the Pay tab. |
| Weekly working days at full time |
The value is based on the schedule selected for the employee in Work schedule under Lön Smart - Employees, the Employment tab. |
Holiday term 20 - Monthly salary with holiday allowance + variable partsThe holiday term is used for salaried administrative workers and collective employees and is calculated according to the same salary rule.
When taking out holiday, the monthly salary is kept and a holiday allowance is paid, as well as a variable holiday allowance in some cases. The variable part is disbursed via the shortcut Holiday - Holiday compensation as a lump sum on one occasion during the year after the qualifying year. The variable part's qualifying year is always the previous holiday year. If the variable holiday pay is not paid during the year it will be lost and replaced by a new calculated amount at the closing of the holiday year. Which period the holiday year runs during is optional.
The holiday pay is calculated based on the current monthly salary at the time the holiday was used.
This is how the different calculations are done. Under Values in the calculation formulas you can see where in the program the values are retrieved from.
Holiday leave
The holiday is always rounded upwards to full days.
The calculation of holiday is done according to this formula:
((employment in whole calendar days - non-holiday accruing leave in whole calendar days) / days of the year) * holiday entitlement = paid holiday
Holiday pay per day, qualified days
The calculation of holiday pay per day for qualified days is done according to these formulas:
monthly salary * (4.6% + holiday allowance %) = holiday pay per day
holiday pay per day / current employment rate * average employment rate current year = holiday pay per day when employment rate is changed
Holiday pay per day, paid days
The calculation of holiday pay per day for paid days is done according to these formulas:
monthly salary * (4.6% + holiday allowance %) = holiday pay per day
holiday pay per day / current employment rate * average employment rate qualifying year = holiday pay per day when employment rate is changed
Saved holiday pay per day
The Annual Leave Act recommends that you do not take the employment rate for the qualifying year of the saved days into account. If you still want to take this into account, you can read more in the topic What does taking the employment rate for the qualifying year of the saved days into account mean?.
Holiday pay, variable part
Even if the qualifying year in your company is the current year, the variable part is always calculated based on the year before the holiday year.
There are two ways to calculate variable holiday pay.
If the Calculated with a percentage per day of holiday accruing variable pay taking holiday accruing leave into account box is checked, the calculation will be done according to the following formula:
((holiday accruing leave in whole work days * holiday accruing variable pay) / (365 - holiday accruing leave in whole work days - used days of holiday) + holiday accruing variable pay) * holiday allowance variable % * holiday entitlement
If the Calculated with a percentage on holiday accruing variable pay box is checked, the calculation is done according to the following formula:
holiday accruing variable pay * holiday allowance variable %
Holiday pay liability
The calculation of holiday pay liability is done according to this formula:
monthly salary * (4.6% + holiday allowance %) = holiday pay per day
holiday pay per day / current employment rate * average employment rate current year = holiday pay per day when employment rate is changed
Values in the calculation formulas
| Current employment rate |
The current employment rate is retrieved from the work schedule that has been selected for the employee and is shown under Lön Smart - Employees and the Employment tab. |
|
Employment time, whole calendar days |
|
| Non-holiday accruing leave, whole calendar days |
This could for example be leave of absence or sick leave over 180 days and the value is retrieved from Lön Smart - Employees and the Holiday tab. |
| Average employment rate |
In order to manually calculate the employment rate for an employee who has worked both 75% and 50%, you need to calculate the average first. The calculation is done according to the following: 75% for 9 months (275 days) 50% for 3 months (90 days) (275 * 75 %) + (90 * 50 %) / 365 (366) days = employment rate |
| Average employment rate, current year |
The value is retrieved from the Average employment rate field under Lön Smart - Employees and the Holiday tab. |
| Average employment rate, qualifying year | The value is retrieved from the holiday value for the saved days from year you qualified for the days. |
| Average weekly working hours in days |
The value is based on the schedule selected for the employee in Work schedule under Lön Smart - Employees, the Employment tab. |
| Monthly salary |
The value is retrieved from the Full-time salary field under Lön Smart - Employees and the Pay tab. |
| Holiday entitlement | The value is retrieved from Lön Smart - Employees and the Holiday tab. |
| Holiday allowance % |
|
| Weekly working days at full time |
The value is based on the schedule selected for the employee in Work schedule under Lön Smart - Employees, the Employment tab. |
Holiday term 30 - Seasonal/Extra employment with holiday compensation
Holiday term 30 is used for extra employed persons who receive holiday compensation on each payslip, or in connection with the end of a seasonal employment for the period. The term is calculated according to the percentage rule.
No holiday will be calculated and you will not have to enter any holiday entitlement for employees who follow this holiday term. You do not need to close the holiday year when it comes to term 30.
This is how the different calculations are done. Under Values in the calculation formulas you can see where in the program the values are retrieved from.
Holiday compensation
The calculation of holiday compensation is done according to this formula:
((holiday accruing pay + holiday accruing variable pay + valuation of hours of leave) * holiday pay %)
If the box Holiday compensation is automatically paid at the next pay run is checked on the Holiday tab in the employee list for a salaried employee in the current pay period, the holiday compensation is calculated based on salaries and compensations up until the deviation period. This is due to it not being possible to foresee what might happen during the current month or the period that the monthly salary relates to. The holiday pay liability will therefore not show 0 on the holiday pay liability list.
Valuation of leave
Under Settings - Payroll settings and the Holiday tab you can choose whether you want to use the average hourly wages instead of the calculated hourly wages when valuating holiday accruing leave.
Option 1 The valuation of hours of leave = holiday accruing hours of leave * average hourly wages
Option 2 The valuation of hours of leave = holiday accruing hours of leave * hourly wages / basic hourly wages
Calculation for leave only
If an hourly employee has been on leave, the calculation is done according to this formula:
(holiday accruing hours of leave * hourly wages) * holiday pay %
If a salaried employee has been on leave, the calculation is done according to this formula:
(holiday accruing hours of leave * (monthly salary / agreement period))* holiday pay %
Values in the calculation formulas
| Basic hourly wages |
The value is retrieved from the field Calculated hourly wages under Lön Smart - Employees and the Pay tab. |
|
Holiday accruing pay |
The value is retrieved from Lön Smart - Employees and the Holiday tab and pertains to the total pay, paid using pay codes which affect the accumulator Holiday accruing pay. |
| Holiday accruing leave hours | The value is retrieved from Lön Smart - Employees and the Holiday tab and pertains to the total pay, paid using pay codes which affect the accumulator Holiday accruing leave, hours. |
| Holiday accruing variable pay | The value is retrieved from Lön Smart - Employees and the Holiday tab and pertains to the total pay, paid using pay codes which affect the accumulator Holiday accruing pay. |
| Holiday pay % |
The percentage for holiday pay is primarily retrieved from the Holiday pay % field under Settings - Payroll settings and the Holiday tab for the holiday term. You can also enter a personal percentage per employee. This is done under Lön Smart - Employees on the Holiday tab, by checking Own |
| Average hourly wages |
Holiday accruing pay and potential leave: holiday accruing pay / holiday accruing working hours in hours = average hourly wages No holiday accruing pay and hourly employee: hourly wages = average hourly wages No holiday accruing pay and salaried employee: monthly salary / agreement period / employment rate % = average hourly wages |
| Hourly wages | The value is retrieved from Lön Smart - Employees and the Pay tab. |
