When an employee is on parental leave for part of a month, UK Payroll calculates a daily rate and uses this to work out the amount to deduct from their normal monthly salary.
The daily rate is calculated as:
- Annual salary ÷ Annual hours (Weekly hours x 52) × Hours worked per day = Daily rate
UK Payroll then multiplies the daily rate by the number of working days the employee is on leave:
- Daily rate × Days on leave = Parental leave deduction
This amount is deducted from the employee’s normal salary for the month.
For example, if an employee returns from parental leave part-way through the month, only the working days they were still on leave are used to calculate the deduction.
Note: This calculation is based on an employee working five days per week with the same number of hours each day. It may need to be adjusted for employees who work part-time or have a different working pattern.