As a contractor, your pay will be in three elements. Your assignment rate contains PAYE rate, plus holiday pay and employer costs. We calculate and deduct employment costs to arrive at your gross taxable pay. You will see a payment of 'salary' at the national minimum rate. Holiday pay is calculated on a pro-rata based on 5.6 weeks of holiday per year. We advance this to you each time you are paid unless you tell us that you want to retain it. Finally, the remainder of your gross taxable pay is shown as additional pay.