12.07% holiday pay explained
Irregular-hours and part-year workers accrue holiday at 12.07% of the hours they actually work in each pay period. The figure comes from the statutory 5.6 weeks of leave divided by the 46.4 weeks a year that remain for work.
Holiday hours = hours worked × 12.07%It applies to leave years starting on or after 1 April 2024. Earlier leave years use the previous rules.
Rolled-up holiday pay
For irregular-hours and part-year workers only, employers can pay holiday pay with each payslip instead of when leave is taken.
Rolled-up holiday pay = pay for the period × 12.07%- It must appear as a separate line on every payslip.
- Employers must tell workers when it is introduced.
- Workers must still be able to take their leave.
Zero-hours holiday pay
Zero-hours and casual workers usually count as irregular-hours workers. They build up holiday at 12.07% of hours worked, and are paid for leave either through rolled-up holiday pay or at the 52-week average when they take it.
Holiday entitlement for regular hours
Workers with fixed days get 5.6 times their working week, up to a maximum of 28 days. Someone working 3 days a week gets 16.8 days. Bank holidays can count towards this entitlement.
Days = days per week × 5.6 (maximum 28)
Calculating a week's holiday pay
Where pay varies, a week's holiday pay is the average over the last 52 weeks in which the worker was paid. Weeks without pay are skipped, looking back no more than 104 weeks. For 4 of the 5.6 weeks, the average must include regular overtime, commission and payments linked to seniority or qualifications.
New record-keeping duty from April 2026
Since 6 April 2026, employers in Great Britain must keep adequate records of holiday entitlement, holiday pay and payments for untaken leave, for six years. Failing to keep them is a criminal offence, and underpaid holiday can attract a penalty of up to 200% of the underpayment.