Uk Holiday Pay Calculation
Clear explanation with practical examples for UK workers
UK Holiday Pay Calculation: Complete Reference
UK holiday pay law has become increasingly complex following multiple tribunal and court decisions since 2014. This guide consolidates the current legal position for 2025/26, covering regular workers, part-time employees, casual workers, and those with variable pay.
The fundamental rule is straightforward: workers must not suffer financially for taking holiday. This means holiday pay should reflect what the worker would have earned had they been working, including regular overtime, commission, and contractual bonuses.
UK Holiday Pay: The Three Tiers
| Leave Type | Source | Weeks | Pay Basis |
|---|---|---|---|
| EU-derived (Reg 13) | Working Time Directive | 4 weeks | Normal remuneration (inc. OT, commission) |
| UK additional (Reg 13A) | UK statute | 1.6 weeks | Basic pay only (unless employer chooses more) |
| Contractual extra | Employment contract | Varies | As per contract terms |
This three-tier structure means the first 4 weeks of holiday should be paid at the higher rate (including regular overtime), while the remaining 1.6 weeks can be paid at basic rate only.
Calculating Holiday Pay for Different Worker Types
Salaried workers (fixed hours): Holiday pay equals normal salary — no additional calculation needed. Hourly workers (regular hours): Calculate average weekly earnings over the 52-week reference period. Variable/zero-hours: Use the 52-week reference period, excluding zero-pay weeks and looking further back to find 52 working weeks. Commission-based: Include average commission over 52 weeks for the first 4 weeks of leave.
For basic salary calculations, use the pro rata calculator. For overtime's impact on holiday pay, see our overtime holiday calculator. For a simpler overview, read our main holiday pay guide.
Quick Summary: Uk Holiday Pay Calculation
If you're short on time, here's what you need to know about uk holiday pay calculation:
- What it means: Uk Holiday Pay Calculation involves calculating pay or entitlement proportionally based on the ratio of hours or time worked versus the full-time equivalent.
- The formula: Full-Time Amount × (Your Hours ÷ Full-Time Hours) = Your Pro Rata Amount
- Who needs it: Part-time workers, term-time staff, teachers, job-sharers, and anyone on reduced hours.
- UK law: Under the Part-time Workers Regulations 2000, part-time employees have the right to be treated no less favourably than comparable full-time workers.
Worked Example: Uk Holiday Pay Calculation
Let's calculate holiday pay for a part-time employee. Maria works 20 hours per week (full-time is 37.5 hours) at £12.50 per hour.
Step 1 — Holiday entitlement: 5.6 weeks × (20 ÷ 37.5) = 2.987 weeks = 14.93 days
Step 2 — Daily holiday pay rate: 20 hours ÷ 5 days = 4 hours × £12.50 = £50/day
Step 3 — Total annual holiday pay: 14.93 days × £50 = £746.67
Under UK employment law, Maria is entitled to a minimum of 5.6 weeks' paid holiday, calculated pro rata based on her part-time hours. This uk holiday pay calculation follows the method set out in the ACAS holiday pay guidance.
Key UK Holiday Pay Rules
- Statutory minimum: All UK workers are entitled to 5.6 weeks' paid holiday (28 days for full-time, pro rata for part-time).
- Bank holidays: There's no automatic right to paid bank holidays — employers can include them in the 28-day total or add them on top.
- Irregular hours: From April 2024, the new accrual method for irregular hours workers calculates entitlement at 12.07% of hours worked in each pay period.
- Rolled-up holiday pay: Now permitted for irregular hours and part-year workers (from April 2024), allowing holiday pay to be included in each payslip.
- Carry-over: Workers must take at least 4 weeks' holiday per year. Additional entitlement (1.6 weeks) can sometimes be carried over if your contract allows.
Source: ACAS Holiday Entitlement Guide
All calculations on this page follow ACAS pro rata pay guidelines and are consistent with the UK Employment Rights Act 1996. Tax figures use HMRC 2025/26 rates. The April 2025 National Living Wage of £12.21/hour is applied where relevant.
Further Reading
For more help with uk holiday pay calculation, explore our free UK tools. You may also find these useful: pro rata calculator, term-time salary calculator, overtime calculator.
Last updated: February 2026. Verified against HMRC 2025/26 tax rates and April 2025 National Living Wage (£12.21/hour).
Frequently Asked Questions
UK workers are entitled to a minimum of 5.6 weeks paid holiday per year (28 days for full-time workers). This can include bank holidays. Part-time workers receive a proportional amount.
Part-time holiday = 5.6 × number of days worked per week. For example: 3 days/week × 5.6 = 16.8 days annual holiday.
The 12.07% calculation is used for casual/irregular workers. It represents 5.6 weeks ÷ 46.4 working weeks = 12.07%. This percentage is added to pay or accrued as holiday entitlement.
Employers CAN include bank holidays within the 5.6 weeks statutory entitlement. There is no automatic right to bank holidays off in addition to the 28 days, unless your contract states otherwise.