---
title: "How do I prepare holiday addition headings?"
slug: "how-do-i-prepare-holiday-addition-headings"
updated: 2026-06-10T11:24:59Z
published: 2026-06-10T11:24:59Z
canonical: "help.cintra.co.uk/how-do-i-prepare-holiday-addition-headings"
---

> ## 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.

# How do I prepare holiday addition headings?

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, **Cintra iQ** divides the total relevant pay, by the total number of contractual hours for the number of weeks/periods as set up in the payroll. ![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/204001064142.png)

> [!NOTE]
> **Closed Payroll Periods:** The average holiday rate calculated only takes into account closed payroll periods.

You must set up an addition heading under which **Holiday Pay** is to be paid at an **Hourly** rate or **Daily** rate. This addition heading is set within the **Ad Hoc Payments** category. If there is no suitable **Ad Hoc** addition heading available, you need to create one.

## To set up the holiday pay addition heading

1. Navigate to the **Addition Headings** window. Go to **Cintra iQ**: Payroll > Payroll Setup > Adjustments > Addition Headings...
2. Click the **New** button. The **New Addition Heading** window appears.
3. Enter the **Name** of the new **Addition Heading**.
  - Ensure the relevant **Reporting Group** is selected.
  - Ensure the **Category** is **Ad Hoc Payments**.
4. Select **Units Times Rate** as the **Addition Type**.
5. Click the **Next** button. The **Ad Hoc Payment...** window appears.
6. Select the desired options in the **Main Settings** tab.
7. Navigate to the **Holiday Pay** section in the **Other** tab.
8. Select **Daily** or **Hourly** from the **Calculate a ...rate from average pay history** drop-down list.
9. Continue to select the desired options in the **Other** tab.
10. Click the **Apply** button. You are now ready to determine **Relevant Pay**.