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  1. 25 votes

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    Hi everyone, we appreciate everyone who signed up and participated in the teams discovery here. Right now, focus has needed to shift to other high priority work.

    We value all the input and feedback we've received from the teams discovery, and based on this they found that there is more work needed in solving this for our customers.

    We have good foundations to build from when we are able to bring attention back to this. For now we will move back to submitted and let you know when there is progression to share.

    Kat Pepper supported this idea  · 
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    Kat Pepper commented  · 

    I don’t understand how this isn’t a higher priority. Every single payroll user in the UK requires this by law, and we’re currently having to calculate it manually. There’s been no update since August 2024 — can we please get some clarity on when this will be addressed?

  2. 49 votes

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    Hi everyone, thanks for your ongoing interest and support for this idea.

    We understand the complexities surrounding calculating holiday pay for employees in the UK, and acknowledge the need to provide a helpful way to calculate an accurate rate in which to pay out their holiday.

    Our product team are excited to share that this is an area we are currently looking into developing.

    Your feedback and ideas are extremely important to us. As such, we’d like to reach out to our valued community members to get involved in prototype testing, commencing later this month.

    The testing will involve using a prototype tool to assess the usability of a proposed way of calculating Holiday Pay in Xero. We'd encourage users that feel strongly about this area of payroll to sign up and welcome users of all experience levels.

    Given the popularity of this idea we expect spaces to fill up…

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    Kat Pepper commented  · 

    Has anyone heard any updates from Xero about this being adapted for the UK?
    Specifically, I'm wondering if there's been any progress on making it possible to calculate average holiday pay based on the previous time period.

    I've been searching for a better solution for over a year now. At the moment, I’m still stuck manually calculating everything in a spreadsheet and making individual adjustments each month for each employee — it’s incredibly time-consuming.

    I keep hearing that systems like BrightPay and BrightHR can handle this automatically. Has anyone had any luck with Xero introducing something similar, or found a good workaround?

    Kat Pepper supported this idea  ·