Next to the same wage principle, Nmbrs also supports the percentage rule. Another name for this rule, is the 12% rule and this is mainly used for Blue Collar. In this article you can find information about the following subjects:

• Leave Model Settings
• Calculation on the Payslip
• Ways to take up / pay out vacation hours
• Conversion to Nmbrs
• Year Transit

Leave Model Settings

Note: The labour agreements with the percentage rule in it are not default in the environment. They have to be created manually.  

The leave settings of the percentage rule can be set in the leave settings model. Afterwards this model can be linked to the labour agreement used by the company. Go to tab 'Leave Settings Model' to create a new model.

1. The period defines from which period this settings is valid. For example if in year 2018 the total days per year is 25 and in year 2019 it is 26, you can create the new setting with start year 2019.
2. The leave type can be set to the 'Same Wage Principle' or the 'Percentage Rule'. In this case you have to set it to the 'Percentage Rule'.
3. The total days per year define the number of holidays that an employee earns in the holiday year if he works fulltime the entire year.
4. Minimum days taken per year defines the minimum number of holidays that the employee is supposed to take up. Any leftover days above this minimum number is saved for next holiday. Any leftover days below this minimum cannot be saved to next year and are paid out at holiday year transit.
5. The percentage defines the value of a holiday. In this example we set 12%.
6. The calculations method defines when the holiday year starts. This can be in January or April.
7. For the take up method you can choose between 'Pay at take up' (we build up the holiday's) and 'Pay every period' (holiday's will be paid out every month). In this model you need to set a default but on employee level it is possible to change this.

Calculation on the payslip

Example: The employee starts at the first of january and works fulltime (40 hours a week). The total days per year are 25 and his salary is 50000.

Pay every period:
Januari
Saldo = 31 / 365 * 25 = 2,12
Money Saldo = % setting * (base 10304 + base 10800) + previous period Moneysaldo + conversion  9221 = 12% * (50000 + 0) + 0 + 0 = 6000
Money a Day = 6000 / 2,12 = 2830,19

Pay at take up:

For the pay at take up the same calculation will take place for the first month. The only difference is that the amount will not be paid but it will show as earned days. The earned days are 3 in this case because you only can take up whole days.

For the next month (period 2) there is the following calculation:
Saldo: 59 /365 * 25 = 4,04
Build up: 4,04 - 2,12 = 1,92
Money Saldo = 12 % * (50000 + 0 ) + 6000 + 0 = 12000
Money a Day: 12000 / 4,04 = 2970,3

The earned days on the payslip will be 5.

Sickness/Unpaid:

In this case the employee took 10 days of unpaid leave. Then there is the following calculation:
Saldo = 31/365 * 25 = 2,12 - 10/365 * 25 = 1,44
Money Saldo = 12% * (50000 + 0) + 0 + 0 = 6000
Money a Day = 6000 / 1,44 = 4166,67

PT% is not 100%:

In this case the parttime percentage for the employee is 40%. Then there is the following calculation:
Saldo = 31/365 * 25 = 2,12
Money Saldo = 12% * (20000 +0) + 0 + 0 = 2400
Money a Day = 2400 / 2,12 = 1132,08

When you change the calculation to pay at take up the earned days will be one = 2,12 * 0,4 = 0,85 > 1. Because the amount needs to be calculated to a fulltime day the pay per period is showing 2,12.

Ways to take up/pay out vacation hours

There are 5 ways to take up / pay out vacation days. These are the 5:

1. Manual. This is built for an employee requesting his employer to pay him some money.
2. Time registration. Employee requests leave by inserting the calendar days he would like to go on holiday.
3. Pay every period.
4. Service end. The employee gets all vacation days paid out.
5. Holiday year transit. The holiday year transit wizard inserts hour codes to pay out vacation days that cannot be stored. In Nmbrs we always pay out those days.
   
   For the manual pay out only use these hourcodes:

Conversion to Nmbrs

If a company is converted to Nmbrs, then insert the fulltime number entitled and leftover holidays  and the parttime percentage from the previous payroll application at employee level. And don't forget to add the value of a fulltime day on wage code 9220. The earned days will be calculated automatically. It is not possible to change this calculation.

Here you can see a list of wage codes that you can use for the conversion:

There are run checks added that will help you when for example some wage codes are missing but should be added:

Year Transit

The holiday year in Sweden starts in January or April and during this year the employee earns vacation days. At the start of next holiday year these earned vacation days turn into entitled vacation days, the entitled turn into leftover year 1 days, and so on. There's a maximum number of entitled days that can be stored to next year and the leftover days for year 5 that haven't been taken up are paid out automatically.

Because calculating and inserting these new vacation values can take quite some time, we have a wizard that calculates this. See this article for more information about the holiday year transit:

• Holiday Year Transit