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holiday entitlement and purchase leave

07 Jan 2020, 21:45

Hi all,
I pay £8.79 to purchase additional holidays. My basic entitlement is 23.5 days, but I have worked for Royal Mail over 5 years now so it should be 24.5 days.
So I assume I'm paying the £8.79 for 5.5 days? This works out at £457.08. Is this not too much to pay? I'm on a 27.5 hour contract.
I have 2 bank holiday credits.
So does my holiday entitlement add up to 32 days? :crazy:

holiday entitlement and purchase leave

07 Jan 2020, 21:55

as far as I know holiday entitlement at 5 years is 23 1/2 days....
again as far as I know it only goes up at 15 years and that's to 26 days I hope....I hope because im about to go through 15 years soon

holiday entitlement and purchase leave

07 Jan 2020, 22:19

What I would do: Look at your wage slip.

Divide the Basic pay by 5. That gives you a 'per day' pay rate.

Multiply that by how many days are you buying - 6.5 or 7.5.

That should do it.

If that doesn't work, add the delivery supplement as well and see if that tallies.

holiday entitlement and purchase leave

07 Jan 2020, 22:29

Thanks for the help. It seems to be the correct amount I'm paying. Just seems a lot per year. I thought it would work out the same as my wage, but Royal Mail must make extra money off people buying extra holidays :thumbdown
If my basic holiday entitlement is 23.5 days then I'm buying 6.5 days at a cost of £439.57 per year when I am earning £371.94. in those 6.5 days.
So Royal Mail are making £67.62 out of this set-up or I am paying one day more that I should be.
Does anyone know if the PAOL costs extra than the actual wage you make?
Last edited by annem on 07 Jan 2020, 22:48, edited 3 times in total.

holiday entitlement and purchase leave

07 Jan 2020, 22:31

centenaryman wrote:as far as I know holiday entitlement at 5 years is 23 1/2 days....
again as far as I know it only goes up at 15 years and that's to 26 days I hope....I hope because im about to go through 15 years soon


Correct - my contract states;
After 5 years 4 weeks 3.5 Days
After 15 years 5 weeks 1.0 Days
After 20 years 6 weeks 0.0 Days

holiday entitlement and purchase leave

08 Jan 2020, 00:59

annem wrote:Thanks for the help. It seems to be the correct amount I'm paying. Just seems a lot per year. I thought it would work out the same as my wage, but Royal Mail must make extra money off people buying extra holidays :thumbdown
If my basic holiday entitlement is 23.5 days then I'm buying 6.5 days at a cost of £439.57 per year when I am earning £371.94. in those 6.5 days.
So Royal Mail are making £67.62 out of this set-up or I am paying one day more that I should be.
Does anyone know if the PAOL costs extra than the actual wage you make?


It nearly always does work out the same as your wage.

Over five years service gets you 23.5 days so you need to buy 6.5 days. Hours per day = 27.5/5 =5.5 hours. So you need to buy 6.5day@5.5 hours which is 35.75hrs .

I'm not sure of the part time rate but using the lower full time rate of £11.62 brings the total to 35.75 hours x £11.62 which equals £415. Add in 6.5 days of delivery supplement which is paid 52 weeks a years and your £439 is looking right on the money.

holiday entitlement and purchase leave

08 Jan 2020, 07:20

annem wrote:Thanks for the help. It seems to be the correct amount I'm paying. Just seems a lot per year. I thought it would work out the same as my wage, but Royal Mail must make extra money off people buying extra holidays :thumbdown
If my basic holiday entitlement is 23.5 days then I'm buying 6.5 days at a cost of £439.57 per year when I am earning £371.94. in those 6.5 days.
So Royal Mail are making £67.62 out of this set-up or I am paying one day more that I should be.
Does anyone know if the PAOL costs extra than the actual wage you make?



You may be confusing gross and net pay. POAL is based on pay before tax (Gross).

holiday entitlement and purchase leave

08 Jan 2020, 18:40

These are the percentage rates from gross pay (including delivery supplement)that should apply.

On Entry: Four and a half week's contractual holiday
Percentage adjustment
Option 1: 5 weeks holidays 1%
Option 2: 6 weeks holiday 3%

Standard after 5 year's service
Option 3: 5 weeks holidays 0.6%
Option 4: 6 weeks holidays 2.6%

Standard after 15 year's service - five week 1 days
holiday
Option 5: 6 week's holiday 1.6%

holiday entitlement and purchase leave

08 Jan 2020, 21:20

If I need any extra days holiday I just work my day off & have it in leu.

holiday entitlement and purchase leave

09 Jan 2020, 07:58

This 'Purchase leave' thing....

How does it work? - so can any RM Postie request to purchase leave? Is there a rule as to how much you are allowed to purchase, or is it just up to RM management whether they allow you to even purchase just 1 day off?

Say I wanted 3 weeks off in a row, can I say 'I need these 3 weeks off, can I purchase them as leave?'.....and potentially get them off?

I assumed 'purchasing leave' meant you get days off, but you simply don't get paid for them. ?

holiday entitlement and purchase leave

09 Jan 2020, 09:42

norris9 wrote:
How does it work? - so can any RM Postie request to purchase leave? Is there a rule as to how much you are allowed to purchase, or is it just up to RM management whether they allow you to even purchase just 1 day off?


You are effectively paying for your own leave. The agreement to purchase annual leave still stands and you can purchase extra up to the maximum of 30 days leave. It can't be bought as a one off though. You see the gaffer in Nov-Jan and he will put you down for purchased leave for the next leave year. It will continue like that until you tell them you no longer want it. You will be paid your normal wage while you take any purchased leave. Say you are a relatively new starter entitled to 22.5 days leave and you purchase up to 30 days. That means you have to purchase 7.5 days to take you to the 30 day maximum. You will the pay back 7.5 days wages to the company in weekly instalments. For example say you earn £300 a week before tax then you will pay back £450 over the year so about £9 a week.

norris9 wrote:Say I wanted 3 weeks off in a row, can I say 'I need these 3 weeks off, can I purchase them as leave?'.....and potentially get them off?

Sadly a different argument. Purchasing leave doesn't mean you can choose to take it when you want. Especially given the different allocation method all offices seem to have. I do the leave at my office and everyone gets a fair crack of the whip. Seniority is a no-no here and is not supposed to be used now.




norris9 wrote: assumed 'purchasing leave' meant you get days off, but you simply don't get paid for them. ?


As I've said above. If you're on leave whether entitled or purchased you will be paid your normal wage.

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