Double Holiday Pay on Recurring salary

SAP Belgium nv-sa Olympiadenlaan 2 1140 Brussels (Evere) Double Holiday Pay on Recurring salary Documentation SAP-HCM: “Belgian Holiday Pay” This doc...
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SAP Belgium nv-sa Olympiadenlaan 2 1140 Brussels (Evere)

Double Holiday Pay on Recurring salary Documentation SAP-HCM: “Belgian Holiday Pay” This documentation relates to the Gross Holiday Pay functionalities within the private sector and is subdivided in different parts. Although the documents are divided in different parts they remain complementary to each other. Some aspects which are explained in this document could also have relevancy within others

The SAP solution offers a solution framework which consists of tables and calculation rules. As a general rule the customer largely defines the first phase of processing within the gross payroll processing. Therefore the delivered SAP template calculation rules can most likely be subject of changes according the employer’s rules and regulations. E.g. the employment rates could be defined in terms of days instead of the template rules computing with hours.

Within this solution the computation of entitled number of vacation days is out of scope.

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Table of Contents 1

2 3

4 5

6 7

Legal Context & SAP template formula ........................................................................................... 5 1.1 Legal context ................................................................................................................................ 5 1.2 The SAP template formula .......................................................................................................... 6 Calculation rates ................................................................................................................................. 7 Monthly processing in subschema BHLP ......................................................................................... 8 3.1 Full-time normal salary ............................................................................................................... 8 3.1.1 The calculation basis ............................................................................................................ 8 3.1.2 The full-time factor .............................................................................................................. 9 3.1.3 The full-time normal salary ................................................................................................. 9 3.2 Entitlement double holiday pay ................................................................................................ 10 3.2.1 The assimilation factor ...................................................................................................... 10 3.2.2 The employment factor ...................................................................................................... 14 Trigger for Double Holiday pay fixed salary.................................................................................. 16 Double Holiday pay in subschema BHLP ...................................................................................... 17 5.1 Export factors from BHOLP ..................................................................................................... 17 5.2 Calculate factors (1): Assimilation factor per variable split ................................................... 19 5.3 Calculate factors (2) ................................................................................................................. 20 5.4 Entitlement factor ...................................................................................................................... 21 5.5 Limit the entitlement factor ..................................................................................................... 22 5.6 Computation double holiday pay recurring salary .................................................................. 25 Force a new calculation Double Holiday upon recurring salary ................................................... 26 Deduct advance payments year -1 ................................................................................................... 29

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Version 01/12/2013 12/01/2015

Updates Initial version Update diagram (December Holiday Pay) page 4

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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This documentation refers to the red marked part in the following graphical overview

Holiday pay

Holiday pay

Holiday pay at leave

Holiday service year

Balance holiday pay:

Early holiday pay:

Holiday pay for previous service year

Holiday pay for current service year

Existing employee

New employee

Registration Holiday form / certificate Blue / White-Collar

Recurring remunerations

Balance holiday pay

Early holiday pay

Single Balance holiday pay

Single Early holiday pay

Double Balance holiday pay

Double Early holiday pay

Regularization

Single holiday pay Recurring remunerations

Single holiday pay

Double holiday pay Recurring remunerations

Double holiday pay

Variable remunerations Single holiday pay Variable remunerations Double holiday pay Variable remunerations

Balance holiday pay certificate

Early holiday pay certificate

Reduction working time (December calculation) Balance single holiday pay Balance double holiday pay

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1 Legal Context & SAP template formula 1.1 Legal context The White-Collar Workers will receive the legal double holiday pay directly from their employer. This payment covers a maximum of 4 weeks’ vacation. For each executed or assimilated month the double Holiday Pay corresponds to 92% of 1/12 of the employee’s brut monthly salary valid within the vacation allocated period.

Berekening van het vakantiegeld van een bediende of leerling-bediende met een vaste bezoldiging Het wettelijk dubbel vakantiegeld voor 4 weken stemt, per gepresteerde of gelijkgestelde maand, overeen met 1/12de van 92% van het brutoloon van de maand waarin de vakantie wordt toegekend. Normaliter moet het dubbel vakantiegeld worden toegekend op het ogenblik dat de werknemer zijn hoofdvakantie neemt. Calcul du pécule de vacances d’un employé ou d’un apprenti-employé percevant une rémunération fixe Le double pécule de vacances légal pour quatre semaines correspond, par mois comportant des prestations de travail ou assimilé, à 1/12ème de 92 % du salaire brut du mois pendant lequel les vacances sont octroyées. Normalement, le double pécule de vacances doit être octroyé au moment où le travailleur prend ses vacances principales.

Example: The employee has been working the complete Holiday Service Year. He was and still is working in 5-days working days system and 40 hours/week. In month of May he has fixed salary of 3000 € when the double holiday pay is processed. This total double holiday pay will equalize 3000 x 92% x 12/12 = 2760 €

For reason of Social Insurance contributions the double holiday pay is split into 2 parts.  

Upon 85/92 of the Double Holiday pay will be applied a 13,07% employee contribution. The remaining 7/92 part – “Additional Double Holiday pay” - is not submitted to Social Insurance contributions.

Therefore there is requested a different “double holiday rate” for each of these payments and a separate computation. Inhoudingen Op 85/92en van het dubbel vakantiegeld wordt, zoals voor de arbeiders, de RSZ-werknemersbijdrage van 13,07% ingehouden. Retenues Comme pour les ouvriers, une cotisation ONSS des travailleurs de 13,07 % est retenue sur 85/92e du double pécule de vacances.

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1.2 The SAP template formula The formula consists of different components:

Double Holiday pay recurring payments = Calculation Rate x Full-time normal salary x Entitlement

Calculation Rate  There are defined 2 different “Calculation Rates” one for Social Insurance submitted and one for the non-submitted payment part from the double holiday pay.

Full-time normal salary This is defined by: 

The “Calculation Basis” which will correspond with the employee’s “normal recurring salary” within the holiday pay period.



The “Full-time factor” which is the employee’s employment percentage within the holiday payment period.

Entitlement The entitlement related to the preceding holiday service year is defined by: 

The “Assimilation factor” collected during the holiday service year. It makes use of the employee’s cumulated non-assimilated absences on the one hand and the employee’s cumulated planned working hours on the other hand.



The “Employment factor” edified during the holiday service year and computed as a yearly average of the monthly values. The values are based upon the employee’s full-time factor and his planned working hours during each month of the holiday service year.

Calculation Rate x [(Calculation Basis) / (Full-time factor)] x [(Assimilation factor) x (Employment factor)]

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2 Calculation rates The calculation rates are represented by the constants in table V_T511K  

BEVA4 defines the rate for the social insurance non-submitted part (currently 7%) BEVA5 defines the rate for the social insurance submitted part (currently 85%)

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3 Monthly processing in subschema BHLP

The processing steps explained in this chapter 3 are executed within the first section of the subschema BHLP

3.1 Full-time normal salary 3.1.1 The calculation basis The employee’s normal salary during the holiday pay period has to be defined by the customer based upon his implemented remuneration structure. It equals “the normal recurring salary an employee would have got if he kept on working instead of taking holidays”. Within the Gross Subschema BT00 this computation is done via template calculation rule B010. See calculation rule B010 which results in the wage type /003 as the calculation basis “normal recurring salary” amount used within the holiday pay functionality.

Example: An employee working 100% on full-time basis (37,50 hours/week). During this full-time employment he has a normal fixed salary of 3.200 €. This employee becomes an 80% part time employee. (30,00 hours/week). With a strict pro rata rewarding he will have a corresponding normal salary of 3200 € x 80% = 2560 €.

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3.1.2 The full-time factor This factor represents the employee’s employment rate within the period the holiday pay is executed. This factor is based on the employee’s “Mean Working Hours per Week” (see factor Q in social insurance regulations) and the “Reference Mean Working Hours per Week” of the employee’s full-time equivalent person (see factor S in social insurance regulations). The Full-time factor is computed in calculation rule BH21.

Example: The employee has a part time employment of 30,00 hours per week during the period of holiday pay. The corresponding full-time work regime counts 37,50 hours per week. The employee’s full-time factor will be 30,00 / 37,50 = 80%

3.1.3 The full-time normal salary The formula for double holiday pay (see 1.2 above) consists partially of the calculation: [(Calculation Basis) / (Full-time factor)] With the elements “Calculation basis” and “Full-time factor” the employee’s normal salary of the holiday pay period is converted to a normal salary of a corresponding full-time reference person. Example: Within the examples above the part time normal salary 2.560 € will be converted to a full-time normal salary by dividing the amount with the full-time factor 80%. This results in 2.560 € / (30,00 / 37,50) = 2.560 € / 80% = 3.200 €. Note: this corresponds also with the formula 2.560 € x 37,50 / 30,00 = 3.200 €

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3.2 Entitlement double holiday pay The entitlement for double holiday pay on recurring salary is based upon - The assimilation factor and - The employment factor

3.2.1 The assimilation factor 3.2.1.1 Non-assimilated absences Each payroll month there will be done a counting of the non-assimilated absences. These absences are identified by their grouping. A monthly continued cumulating of non-assimilated absences per occupation will be done during the holiday service year. 

The absences are defined by absence wage types (T554C). 

The absence wage types representing the non-assimilated absences are grouped via the assignments in table V_T5F99FX/W with subapplication BHOL.



This will result in a totalizing of absences with the group BH03.

The transfer from IT table with the absence wage type values (defined by group BH03), and the totalizing in field from table BHOL or V_T5BL0 is realized via Function BHOLP with parameter FILL 

With activation of the payroll functionalities (constant BEVAN ≠ 0) The group BH03 for non-assimilated absences corresponds with the totalizing of nonassimilated absences in the payroll cluster table field BHOLP_NOABS.



Before the activation of payroll functionalities making use of the initialization table These assignments with BH03 corresponds with the totalizing of non-assimilated absences in the field from the initialization table T5BL0_NOABS.

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Example: The employee started working during the month of March 2012. During the year 2012 he changed occupation in month of October. Within both occupations he had some non-assimilated absences

Occupation 1

Occupation 2

These absences will generate in payroll absence wage types. The assignment of the absence wage types to the counter BH03 in V_T5F99FX/W will identify the wage type hours as the non-assimilated absences.

This assignment will result in the counting of non-assimilated absences in the initialization table T5BL0

As from the activation of the functionalities in payroll the data will be stored in payroll cluster table. This means: after activation e.g. as from 01.01.2013 the non-assimilated absences within the month of February 2013 will be grouped in payroll cluster table BHOLP during payroll execution.

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3.2.1.2 Planned working time In a similar way there can be realized a counting of the employee’s planned working time each month. These values will again be stored in table BHOLP or V_T5BL0 The planned working hours are based upon work schedule and substitutions. Within the subschema BT00 different partial period time parameters are calculated with function PARTT

Between others the parameter TSSOLL defines the employee’s planned working time with number of hours. Example: employee starting working March 7th will have a total of 105 hours planned according his part time work schedule. Expressed by working days this periods counts 14 days in parameter TASOLL.

With calculation rule BH20 the monthly value is stored in wage type /VAS for each WPBP period

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The assignment of the wage type to group BH02 is done via V_T5F99FW/X

The execution of the payroll report will apply the Function BHOLP with parameter FILL Within the initialization table T5BL0 the planned working time is stored in field SSOLL

Occupation 1

Occupation 2

Repeating this processing for each month will realize the totalizing of the planned hours for each occupation during the holiday service year.

After activation of the functionalities (e.g. 01.01.2013) an equal totalizing process takes place with storage of the values in payroll cluster table BHOLP within field SSOLL

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The values are assigned to the relevant occupation periods by means of the SV split. Therefore these wage types used in the holiday pay functionalities should have the SV split indicator. Wage types processed in calculation rule BH22 become the setting of this SV split indicator via operation BSPLTK. Between others this applies for wage type /VAS

Operation BPSLT : see also OSS note 1855114

3.2.1.3 Assimilation factor When the double holiday pay is triggered the assimilation values will be computed based upon the stored and totalized data from the non-assimilated absences and from the planned working time. The assimilation factor itself will becomputed in the wage type /VA5 together with the employment factor. Assimilation factor = (planned work – non-assimilated absence) / planned work

3.2.2 The employment factor Each month there will be calculated the employment factor. This factor is based on: 

The employee’s “Mean Working Hours per Week” (see factor Q from social insurance regulations) and the “Reference Mean Working Hours per Week” of the employee’s fulltime equivalent person (see factor S from social insurance regulations).



The employee’s planned versus his projected number of working hours for a complete month.

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The calculation is done with formula: (Q / S) x (TSSOLL / TSDIVI). These operations are executed in calculation rule BH21 for each WPBP split, and results in the wage type /VAU

The monthly results will be totalized and stored in table BHOLP_EMFAC via the wage type mapping in V_T5F99FW/X with group BH01. Before activation of the functionalities this totalizing can be done within table T5BL0_EMFAC

Example : Employee started with a part time contract (80%). The hiring took place as from March 7th. Therefore he has only a part of the month with planned working hours. The employment factor for month of March will be (30,00 / 37,50) x (105,00 / 127,50) = 65,88%

Occupation 1

Occupation 2

The same computations take place in subsequent months of the year and the totalizing is done. As there is a split in occupation for month of October there will be 2 occupation values within the holiday service year.

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4 Trigger f or Double Holiday pay fixed salary The computation of the double holiday pay on fixed salary is triggered by wage type maintained with value 1 in processing class 80 See template wage type M700 which will “activate” the computation.

In standard template the trigger is entered in infotype 0015, no automatic trigger generation is delivered. If required this should be implemented by customer.

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5 Double Holiday pay in subschema BHLP

5.1 Export factors from BHOLP The Function BHOLP (PAR1 = NODO) exports factors from table BHOLP Conditions for export and wage type generation: •

Service year: The values to be exported belong to an occupation period of the previous year



BHOLP_NDHPP = ‘ ‘: No double and additional double holiday pay was yet paid for the individual occupation period



BHOLP_EDHPP = ‘ ‘: No double and additional double holiday pay for employees leaving the company was yet paid for the individual occupation period

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BHOLP table:

pp

Condition EDHPP

Condition previous year

Condition NDHPP

Wage Type generation Planned hours minus Non-assimilated absences 975,00 - 82,50 382,50 – 30,00

The /VA5 wage type will also be generated by function P0505 in periods for which a holiday certificate (white-collar) or holiday form (blue-collar) is registrated

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5.2 Calculate factors (1): Assimilation factor per variable split The calculation rule BH07: •

Processes the wage type /VAT and computes the assimilation factor per Occupation.



This will be stored in the wage type /VA5

Note: calculation rule BH07 also prepares regularization of December holiday pay. Input

Output 91,54 = 892,50 / 975,00 92,16 = 352,50 / 382,50

This corresponds with the computation of the Assimilation factor per H01 and H02 split:

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5.3 Calculate factors (2) The calculation rule BH08: •

Sets payment flag for double holiday pay (BHOLP_NDHPP) via operation BHOPP



Eliminates the variable split indicators H01 and H02

The Entitlement factor (see 3.2 above) is computed based on the Employment and Assimilation values. These are computed for each Occupation period separately and then added. Input

Output

76.232,69 = (596,41 x 91,54) + (234,78 x 92,16) = 54.595,37 + 21.637,32

This based upon the input data in which the value 596,41 equals the total of the monthly Employment factors for H01 occupation from table below: 65,88 + (6 * 80) + 50,53 And value 234,78 stands for the total of the monthly Employment factors for the H02 occupation = 34,78 + 100 + 100

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The payment flag is set at the beginning of the double holiday computation via the operation BHOPP. The completeness of further double holiday computation must be assured to keep consistency between table setting of the flag and the payroll results.

5.4 Entitlement factor The calculation rule BH32: 

The previous values will be divided by 12 to become the Entitlement factor from the holiday service year.



This entitlement can be as a maximum 100%

This results in our example as an entitlement factor of 63,53% = 76.232,69 / 1200

And this entitlement also corresponds with a yearly Employment factor 69,27% multiplied with a yearly Assimilation factor 91,71%

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5.5 Limit the entitlement factor The employment factor is computed every month (see 3.2.2 above). Within the double holiday payment month this employment factor could be less than the employment factor of the preceding holiday service year. The employment factor will be limited when employment factor has become less. For this case the employment factor will become the value of the payment period during which the double holiday pay is allocated. This is realized with the calculation rule BH28

The employee’s Employment rate within payment month equals 100% The Entitlement factor of the preceding Holiday service year will be divided with the employment factor from payment month:



When the amount field of /VA5 is not > 100 Then this will become the Entitlement factor for the double Holiday pay on recurring income.



When the amount field of /VA5 would be > 100 Then the computation of the current employment would become the Entitlement factor for the double Holiday pay on recurring income. Example: The employee has an Entitlement factor of 63,53% based upon his occupations during the previous year (holiday service year 2012). During the Holiday pay period (05/2013) he has a half-time occupation working as an average 20 hours per week. Compared with the full-time reference person (mean working hours per week 40) he only has an employment factor of 50%. The Entitlement factor would be limited till 50%

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With calculation rule BH28 the final factor will be stored in wage types /VAA and /VAE. With these last wage types /VAA and /VAE the final computation of double holiday pay on recurring salary can then take place.

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The limitation of the employment factor takes place upon a yearly average value! Example: Within the holiday payment month the employee’s part time employment rate equals 90%. During the preceding holiday service year the employee has been working 11 month at 100% and 1 month at 80% Limitation month by month When a limitation would have been done month by month the employee would become at the end the employment rate of  11 months with limitation 90% + 1 month with employment factor 80%.  On a yearly basis this would become (11 x 0,90) + (1 x 0,80) = 10,70  And as a yearly average 10,70 / 12 = 89,17% SAP template calculation rules There will first be computed the yearly average employment factor which then will be limited. 11 months at 100% + 1 month with employment factor 80% On a yearly basis this would become (11 x 1,00) + (1 x 0,80) = 11,80 And as a yearly average 11,80 / 12 = 98,33 This value will be subject of the limitation till 90%.

The assimilation factor is applied holiday occupation period by period upon the employment factor. There would not be any difference when the assimilation factor is applied period by period or on a yearly average value. At least as long as the total of work schedule hours (in example 577,50 versus 825,00) represents the ratio of the different employment percentages (in example 100% and 50%)

Example:

We cannot apply a known assimilation factor from one period (e.g. from current employer data) upon another occupation period (e.g. from a previous employer). To avoid problems when Holiday certificates are processed for which no expected work schedule hours neither assimilation hours are known (certificates), there is applied a computation based on separate holiday occupation periods.

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5.6 Computation double holiday pay recurring salary Calculation Rate x [(Calculation Basis) / (Full-time factor)] x [(Assimilation factor) x (Employment factor)] = Calculation Rate x [(Calculation Basis) / (Full-time factor)] x Entitlement factor

When employee’s current mean working hours are not equal to 0, than computation proceeds. There will be made use of the employee’s “normal recurring salary” (/003 see 3.1.1). This will be converted to a full-time normal salary (see 3.1.3) Multiply with the Entitlement factor Upon this converted salary will be applied the double holiday calculation rate (BEVA5 see 2). The eventual previously cumulated payments for double holiday on recurring salary will be distracted. (See chapter 6 below)

The processing of /VAA will make use of the constant BEVA5 = 85% The similar processing of /VAE is similar and will make use of the constant BEVA4 = 7%

= 3200 € x 63,53% x 85% = 3200 € x 63,53% x 7%

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= 1728,02 = 142,31

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6 Force a new calculation Double Holiday upon recurring salary As explained in item 5.1 above there will be put a mark in table BHOLP when the double holiday pay is executed. And this will prevent a repeated computation during a later payroll IN-period.

pp

pp

Field BHOLP_NDHPP controls the calculation of the double holiday pay: • •

X = Double holiday pay was calculated ‘ ‘ = Double holiday pay is not calculated

The calculation can however be repeated after the first calculation by means of a specific trigger wage type that overrules the value of field BHOLP_NDHPP (This could e.g. be the case of indexation or salary raise)

This wage type should have value C in the processing class 80

This repeated “forced calculation” run is not equal to a retroactive payroll run.

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The entitlement factor (/VA5) of the original calculation will be retrieved and reused in repeated calculation in calculation rule BH17.

As a consequence a change for employment (e.g. becoming half-time in the meanwhile – see 5.4), will not have any impact upon these factors during the repeated calculation.

The holiday certificates / forms are reprocessed. Payroll function P0505 takes into account the wage type for the forced calculation (based on PCL 80). When a forced calculation is detected, all the entries for the holiday year are taken into account from January till the month in which the renewed calculation takes place.

The double and single holiday pay deductions in case of former regularization of the holiday form(s) / certificate(s) will be added to avoid a doubled deduction.



The renewed calculation takes place with the same rule BH09 explained in item 5.6. The double and additional double holiday pay paid earlier in the year will be deducted.

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Example: The employee changes work schedule and becomes half-time employee as from 01.06.2013.

Reference full-time: 40,00 hours Reference full-time: 37,50 hours His salary didn’t decrease with the same ratio

He takes his main vacation within this month of July. The employer forces a repeated computation of the double holiday pay on the recurring pay.

The repeated calculation run will make use of the previously defined entitlement (the assimilation and the employment factors are retrieved from previous run)

The employee’s current normal salary /003 will be converted to a full-time salary: = 1800,00 € x 40 / 20 = 3600,00 €

Using the calculation rates these results in a repeated computation of: 3600 € x 63,53% x 85% 3600 € x 63,53% x 7%

= 1944,02 € = 160,10 €

The new calculation result has to be corrected with previous computed pay (see 5.6). 1944,02 – 1728,02 160,10 – 142,31

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= 216,00 = 17,79

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7 Deduct advance payments year -1 The additional holiday pay – also known as “European holiday entitlement” – is subject of a regularization of the payments during the following year. These payments are considered as advance payments already done during the holiday service year. These will be deducted from the payments in the year after. This is realized via the calculation rule BH12

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