---
title: "Calculating holiday pay rates on the employee's payslip"
slug: "how-do-i-calculate-holiday-pay-rates-on-the-employee-s-payslip"
description: "Calculate holiday pay rates using Cintra iQ by averaging historical pay over 12 weeks. Learn how to set up and calculate effectively."
updated: 2026-07-29T08:50:35Z
published: 2026-06-10T11:26:23Z
canonical: "help.cintra.co.uk/how-do-i-calculate-holiday-pay-rates-on-the-employee-s-payslip"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.cintra.co.uk/llms.txt
> Use this file to discover all available pages before exploring further.

# Calculating holiday pay rates on the employee's payslip

You can calculate an hourly rate or daily rate at which to assign to holiday pay. This rate is based on the average rate of pay accumulated over several historical periods. When calculating the average rate of pay, **Cintra iQ** considers:

1. The number of historical periods required. Twelve weeks is the default period on which to base your calculation, but it can be changed. When an individual has not been employed for the full period set, the calculation takes into account the number of existing periods of pay associated to the individual.
2. Relevant pay for each historical period. For more information, see [**How Do I Determine Relevant Pay?**](/iq/docs/how-do-i-determine-relevant-contractual-pay)
3. Number of contractual hours/days within each historical period. For more information, see [**How Do I Set Contractual Hours/Days?**](/iq/docs/how-do-i-set-contractual-hours-days)

To obtain the employee's holiday rate based on the average pay over twelve weeks, **Cintra iQ** divides the total relevant pay for the 12 weeks, by the total number of contractual hours for the 12 weeks. ![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/204001066731.png)

> [!NOTE]
> **Note:** Closed payroll periods: The average holiday rate calculated only takes into account closed payroll periods. Once you have set up the holiday rate requirements, you are now ready to calculate the employee's holiday pay either by calculating the payroll via the Tool bar Calculate icon or by the employee's payslip.

## To calculate the holiday pay rate

1. Navigate to the employee's **Payslip & Period Summary** window. Go to **Cintra iQ**: Employment record > Forms > Payslip
2. Navigate to the **Gross to Net Summary** tab.
3. Click the **Calculate** button. A message appears stating that the employee's payroll information has been calculated. And the payment now appears on the payslip.
4. Expand the **Holiday Rate** to view the details, if necessary.
5. Click the **OK** button to close or click the **Print** button to print the payslip.