Every worker in the UK—whether full-time, part-time, or on a zero-hours contract—is entitled to at least 5.6 weeks’ statutory paid holiday per year. However, calculating what this means in practice varies considerably depending on hours worked, pay patterns, and contract type. This guide explains how to work out entitlements for different workers and how to calculate correct holiday pay.
The basic entitlement: 5.6 weeks
The statutory minimum holiday entitlement is 5.6 weeks per year. For a full-time worker on a standard five-day week, this equals 28 days of paid annual leave. All workers have this right from day one of employment, regardless of contract type or length of service.
The 5.6 weeks include bank holidays only if your workplace contract, policy, or custom treats them as paid leave. Bank holidays are not automatic statutory holiday—they are simply public holidays, and you can choose whether to include them within the 5.6-week allowance or provide them in addition.
Calculating entitlement for part-time workers
Part-time workers receive 5.6 weeks’ entitlement calculated pro-rata. The calculation is straightforward: multiply 5.6 by the number of days (or hours) they work per week.
Example: A part-time worker working three days a week is entitled to 16.8 days of paid holiday per year (3 × 5.6). A worker on a 20-hour week with flexible scheduling is entitled to 5.6 times 20 hours, or 112 hours per year.
Part-time workers must not be treated less favourably than full-time staff. If your business gives full-time employees more than 28 days (the statutory minimum), part-time staff must receive the same pro-rata top-up. For example, if full-time staff get 30 days, a three-day-per-week worker should receive 18 days (3 × 6 weeks).
Do not round down partial days or hours during the first year of employment; instead, round up to the nearest half-day. This ensures workers receive their full statutory entitlement.
Holiday pay: what counts in week’s pay
When a worker takes holiday, you must pay them their normal rate of pay. The calculation differs depending on whether they have fixed or variable pay.
For workers with variable pay—such as those who work overtime, commission, or bonus-based roles—use the average weekly earnings over the previous 52 weeks. Crucially, do not include holiday pay itself within this calculation period; count back further if needed to find 52 weeks of actual work pay.
What counts as normal pay for holiday purposes includes:
- Basic salary or hourly rate
- Regular overtime (all types, including voluntary, if regularly worked)
- Commission payments that regularly make up part of earnings
- Shift premiums or enhancement payments
- Payments for length of service or professional qualifications
What does not count:
- Occasional or ad-hoc bonus payments
- Occasional overtime worked only very rarely
- Redundancy payments
- Expenses and allowances (unless they replace earnings)
If a worker works irregular patterns—such as some weeks at full hours and other weeks at reduced hours—take the average weekly earnings across the 52-week reference period.
The 12.07% accrual method for irregular hours workers
From 1 April 2024 onwards, employers have a simpler method for calculating holiday pay for workers on irregular hours or part-year contracts. Rather than calculating daily or hourly accrual, you can use the 12.07% accrual method.
The 12.07% figure represents 5.6 weeks divided by 46.4 working weeks in a year (52 weeks minus the 5.6 weeks of holiday entitlement). This percentage is applied to the worker’s total pay or hours in each pay period.
For example, if an irregular hours worker earns £2,000 in a pay period, their accrued holiday pay is £2,000 × 0.1207 = approximately £241. This is added to their pay, either as a separate line or rolled into their hourly rate.
Alternatively, some employers use the percentage based on hours worked: if a worker worked 68 hours in a pay period, their accrued holiday is 68 × 0.1207 = approximately 8.2 hours of holiday entitlement.
From 2024 onwards, these reformed calculations apply only to leave years beginning on or after 1 April 2024. If your pay year runs from January to December, these rules apply from 1 April 2024 onwards. If it runs from April to March, they apply from the start of your 2024-25 leave year.
Rolled-up holiday pay
For irregular hours and part-year workers only, you can pay holiday allowance “rolled up” into each pay packet rather than taking it as separate paid time off. The rolled-up payment must be at least 12.07% of the worker’s gross pay for that pay period (or the equivalent in hours).
This approach is only legal for workers with genuinely irregular or variable hours, not for full-time or standard part-time staff. It must be clearly stated in the employment contract or agreed in writing.
The advantage is simplicity—no separate holiday records or pay runs. The disadvantage is that workers do not get time off for rest or family commitments; holiday is purely a cash addition. Many workers prefer to take actual paid time off, and you must encourage this if possible.
Carrying over unused holiday
Under general law, workers can carry over a maximum of 8 days of statutory holiday into the next leave year, but only with the agreement of the employer. If a worker loses holiday because the employer did not allow them to take it or did not remind them before the cut-off date, they can carry over up to 4 weeks’ entitlement in those circumstances.
In exceptional cases—such as maternity leave, long-term sickness, or parental leave during which the worker could not reasonably take holiday—up to 28 days can be carried over into the following year. Any carried-over leave not taken within 18 months may be lost.
The employer must actively manage holiday to ensure workers can take their entitlement. You should set clear cut-off dates, inform workers of dates when leave will be lost, and maintain records of holiday taken and carried over.
Key changes from 2024
The 2024 reforms simplified calculations for part-year and irregular hours workers, introducing the 12.07% accrual method and permitting rolled-up holiday pay. These changes apply only to leave years beginning on or after 1 April 2024, so there is a staggered implementation depending on your leave year dates.
Most workers—full-time and standard part-time staff on fixed hours—are unaffected; the 5.6-week entitlement and pro-rata calculation remain unchanged.
Record keeping and common mistakes
Keep records of holiday accrual, dates taken, and carry-over balances. This is essential if a worker’s employment ends or a dispute arises. When a worker leaves, you must pay out any unused statutory holiday entitlement; failure to do so is a breach of contract and wages legislation.
A common mistake is treating bank holidays as separate from the 5.6-week entitlement without agreement; they must be deducted unless your policy clearly states otherwise. Another is forgetting to include regular overtime in the week’s-pay calculation for workers who always work extra hours.
For irregular hours workers, many employers fail to accrue and pay holiday correctly; using the 12.07% method from April 2024 simplifies this considerably.
Key points
- All workers receive 5.6 weeks’ statutory paid holiday per year (28 days for a five-day week)
- Part-time entitlement is pro-rata: days worked per week × 5.6
- Holiday pay must include regular overtime and commission if these normally make up part of earnings
- From April 2024, irregular hours workers can accrue at 12.07% of hours or pay per pay period
- Rolled-up holiday pay (adding the 12.07% to wages) is allowed only for irregular hours workers with a written agreement
- Workers can carry over a maximum of 8 days by agreement; up to 4 weeks if the employer prevented them taking leave
- Unused statutory holiday must be paid out when employment ends
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