Holiday pay

Workers are entitled to a week’s pay for each week of statutory leave that they take.

Most workers are entitled to 5.6 weeks’ paid holiday a year. You can use the holiday calculator to work out how much leave someone should get.

How to work out a week’s pay

A week’s pay is worked out according to the kind of hours someone works and how they’re paid for the hours. This includes full-time, part-time, term-time and casual workers.

Working pattern How a week’s pay is calculated
Regular hours and fixed pay (full- or part-time) A worker’s pay for a week
Shift work with regular hours (full- or part-time) The average number of weekly fixed hours a worker has worked in the previous 52 weeks, at their average hourly rate
Irregular-hours and part-year work A worker’s average pay from the previous 52 weeks (only counting weeks in which they were paid)

Calculating average hourly or weekly rate

To calculate average hourly rate, only the hours worked and how much was paid for them should be counted. Take the average rate over the last 52 weeks.

A ‘week’ usually runs from Sunday to Saturday. Only use another 7-day period (like Thursday to Wednesday) if that’s how a worker’s pay is calculated.

If no pay was paid in any week, count back another week so the rate is based on 52 weeks in which pay was paid. You can count back a maximum of 104 weeks to find these.

If a worker has less than 52 weeks of pay, use the average pay rate for the full weeks they have worked.

Workers who are paid monthly

To work out a week’s pay for someone who’s paid monthly:

1. Calculate the worker’s average hourly pay for the last month. Do this by dividing the month’s pay by the number of hours worked in the month.

2. Calculate the weekly pay. Do this by multiplying the average hourly pay by the number of hours worked in a week.

Use the weekly pay calculation for each of the last 52 weeks to work out an average week’s pay.

‘Basic’ and ‘normal’ rate of pay

For regular-hours workers (full- or part-time), employers must pay:

• at least 4 weeks of the worker’s statutory entitlement at their ‘normal’ rate of pay
• the remaining 1.6 weeks at a ‘basic’ rate of pay

For workers who work part of the year, employers must also follow these rules if the worker’s leave year began on or before 31 March 2024.

For irregular-hours workers or those who work part of the year, all leave must be paid at their ‘normal’ rate of pay.

‘Normal’ rate of pay includes commission, regular overtime payments, and any payments related to length of service or professional qualifications. It does not usually include bonus payments.

Rolled-up holiday pay

For regular-hours workers (full- or part- time), an employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’).

Employers can use rolled-up holiday pay for irregular-hours and part-year workers, unless their leave year began on or before 31 March 2024.