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Should commission payments be included in the calculation of holiday pay?

Posted in : First Tuesday Q&A ROI on 3 July 2018
Clodagh Hogan
A&L Goodbody

Yes. The method for calculating holiday pay is set down in the Organisation of Working Time (Determination of Pay for Holidays) Regulations 1997 (S.I. No. 475/1997). The determining factor is whether the employee's rate of pay varies or not in relation to work done. This is because holiday pay is calculated according to an employee's normal weekly rate of pay.

Where an employee's rate of pay varies in relation to work done (e.g. if they are paid by commission), the rate of pay shall be the sum that is equal to the average weekly pay (excluding overtime) calculated over a 13 week period that

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Back to Q&A's This article is correct at 03/07/2018
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Clodagh Hogan
A&L Goodbody

The main content of this article was provided by Clodagh Hogan. Contact telephone number is +353 1 649 2000 or email chogan@algoodbody.com

View all articles by Clodagh Hogan