MDP - Company - Holiday Pay | My Digital Help Centre

Holiday Pay allows you to calculate, accrue, and pay holiday pay for employees through payroll.

MDP currently supports Percentage Based Accrual. Holiday Pay can be configured at the company level and then assigned to individual employees.

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Adding Company Holiday Pay details

Updating Company Holiday Pay details

Adding Company Holiday Pay details

Holiday pay details are the eighth step in the company setup process. You can add your company’s holiday pay details when creating a new company or update them later when managing an existing company.

To add a holiday pay scheme, you need to click on the + Create Holiday Pay Scheme. This will open up the screen below.

Holiday Pay Fields

Enter the details in the holiday pay fields and click Save to save the configuration.

Field	Description	Notes
Holiday Scheme Type	Holiday scheme type. Currently, the only option is Percentage Based Accrual	Percentage Based Accrual calculates holiday pay as a percentage of the employee's eligible pay items. The system uses the holiday entitlement and working days configured in the scheme to determine the applicable percentage.
Holiday Scheme Name	Holiday scheme name	You can enter any name.
Display Units	Show holiday pay in display units in the payslip, payout and holiday pay listing in the employee areas.	Options are Cash, Days, and Hours.
Holiday Entitlement	Number of holiday days included in the holiday entitlement calculation.	The default value is 28.
Working Days	Number of working days used to calculate the holiday rate.	The default value is 260.
Holiday Rate	Percentage used to calculate holiday pay. MDP calculates this based on the entitlement and working days entered.	The default value is 12.07%.
Override	Enable this if you need to use different entitlement or working-day values other than the default.	When Override is enabled, you can change the Holiday Entitlement and Working Days. The Holiday Rate is calculated automatically by MDP and cannot be entered manually.
Show Holiday Balance on Payslip	Enable this option to display the employee's holiday pay accrual on their payslip.	The payslip will show: In-period accrual – holiday pay accrued in the current payroll period. YTD accrual – holiday pay accrued year-to-date.
Automatically Pay In Period	Enable this option if you want accrued holiday pay to be paid to the employee in each payroll period rather than retained as an accrued balance.	This setting can also be overridden at the employee level.
Holiday Year Start Date	When the holiday year begins
Holiday Year End Date	When the holiday year finishes
Carry Over Accrued Holiday To The New Holiday Year	Enable this option if the employee's accrued holiday pay balance should be carried into the next holiday year.

Holiday Pay Schemes allow you to create and manage different holiday pay configurations within your company. You can create multiple schemes and assign the appropriate scheme to each employee based on their individual holiday entitlement and working arrangements.

For example, you may create separate holiday pay schemes for different groups of employees where their holiday entitlements, working patterns, or working-day calculations differ. This ensures that holiday pay is calculated according to the rules that apply to each employee.

You can edit or delete the holiday pay scheme. You can add as many as you like.

How the Holiday Year Works

Holiday pay accrual is determined using the pay period start date, rather than the payroll payment date.

For example:

Holiday year ends: 28 February 2026
Pay period: 23 February 2026 – 1 March 2026
Pay date: 6 March 2026

Because the pay period starts on 23 February 2026, before the holiday year-end date, the holiday accrual is assigned to the previous holiday year.

The fact that the employee is paid on 6 March does not move the accrual into the new holiday year.

Note: MDP uses the pay period start date when determining which holiday year an accrual belongs to.

Clicking Exit Setup exits the process and takes you back to the company list page.

Tip: Use the section indicators at the top to move between sections. For example, click Pension to go directly to the Pension section.

Updating Company Holiday Pay details

To update or create your holiday pay scheme after the initial setup, follow these steps:

Navigate to the Dashboard by clicking the logo. The Company List will then be displayed.
Locate the company and click the Edit icon.
On the company details page, locate the Holiday Pay section.
In the Holiday section, you will have two options based on the initial setup
1. Add: If no holiday pay details were configured during the initial setup, you will see the + Add option. Follow the steps outlined in the Adding Holiday Pay Details section.
2. More: If holiday pay schemes were previously added, the More option will be available.
  1. Click More to view the existing holiday pay schemes. Locate the holiday pay scheme you want to update.
  2. Click the Edit icon next to the scheme you wish to modify.
  3. Click Save to apply changes.
  4. To create an additional holiday pay scheme, click + Create Holiday Pay Scheme.
    
    Note: The Display Units field cannot be changed once the holiday pay scheme has been created. All other available fields can be updated.
  5. To delete the holiday pay scheme, please click the Delete icon and click Proceed on the confirmation pop-up.
Click the Close icon in the top-right corner of the slider.