Holiday Pay As You Go

Holiday Pay can be paid with an employee's pay when an employee is on a fixed term contract of less than 12 months, or when they work on a basis that is so intermittent or irregular that it is impossible or impractical for the employer to provide the employee with 4 weeks’ annual holidays. This is known as Pay As You Go. For information about when Pay As You Go provisions can be used please refer to the MBIE website.

To set an employee to receive their Holiday Pay on a Pay As You Go basis in PayHero, view their record under People > Employees. 

Ensure the employee's normal rate is exclusive of holiday pay, and the Holiday Pay % on the employee's Leave tab is set appropriately (usually 8%). On their Leave tab, select the check box Pay As You Go under the Holiday Pay settings to include the employee's holiday pay with each pay. 

Once an employee is set to receive Holiday Pay As You Go, PayHero will automatically calculate the appropriate amount each time a pay is created. 

Changing from Permanent to HPAYG

Learn more on what to do if an existing employee needs to change to Holiday Pay As You Go here: Changing Permanent Employees to Holiday Pay As You Go

Changing from HPAYG to Permanent 

Learn more on what to do if an employee on a Pay As You Go arrangement becomes permanent here: Changing Pay-As-You-Go Employees to Permanent