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Student allowance : Contents

Holiday pay

Is holiday pay classed as income?

Holiday pay is classed as income for Student Allowance purposes as it is part of employment earnings.

Holiday pay can be paid out in a number of different ways, which will determine how the payment is assessed.

Holiday pay that is paid with the weekly earnings

The total earnings for that week including the holiday pay, is counted as personal income and assessed accordingly.

Holiday pay that is paid as a lump sum with a final pay or pre-annual leave pay

The holiday pay is added to the final pay and the total is counted as personal income for the week it is received.

Holiday pay that is paid per week of annual leave

This holiday pay is personal income for each of the weeks of annual leave.

Holiday pay paid after employment ceases

Any holiday pay that is paid as a lump sum, after employment has ceased, will be counted as personal income for the week it is received.

Any holiday pay that is received outside the study period has no effect on the Student Allowance.

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A lump sum payment is a one-time or single payment. It does not include a series of payments that have been added together to make a single "lump sum" payment.

example a payment of arrears in a "lump sum" that represents a number of payments that would ordinarily have been made individually.

Any interest received from investing lumps sums must be declared and the interest will be counted as personal income.