Checking Holiday Entitlement

When an employee or worker takes holiday, they should receive the same pay while on leave as when they’re at work—regardless of their working pattern. Some employers may offer enhanced holiday pay schemes, so always check your contract.

How a Week’s Pay Is Calculated

By default, a week for holiday pay calculations starts on Sunday and ends on Saturday. You should base your holiday pay on the last full week you worked before your holiday begins. If your pay cycle differs (for example, a week ending on a Wednesday), use that same 7-day period instead.

1. Fixed Hours

If your hours are fixed (full-time or part-time), holiday pay equals your usual pay rate. For example, working 37 hours per week at £400 a week means you receive £400 when taking one week’s holiday.

2. No Fixed Hours

For those on zero-hours contracts or with irregular shifts, holiday pay is based on your average pay over the previous 52 weeks. If a week shows no earnings, replace it with the nearest week you received pay. If you only earned statutory payments (e.g., Statutory Sick Pay), substitute with weeks of your usual pay. You may extend the look-back period up to 104 weeks to secure 52 weeks of typical pay.

Work out holiday pay if you’re paid monthly on GOV.UK

3. Employment Under 52 Weeks

If employed for fewer than 52 weeks, average holiday pay is calculated using the number of full weeks you have worked. For example, after 26 weeks’ service, average your pay over those weeks.

Examples for calculating holiday pay on GOV.UK

Taking Holiday Before Accrual

If your employer agrees, you may take paid holiday before you’ve accrued enough entitlement. In such cases, you should receive an amount that fairly represents your pay for the agreed time off. Employers should consider:

• Your contractual pay rate
• Any pay you’ve already received
• What colleagues in similar roles receive for holiday

Including Overtime, Commission and Bonus

If you regularly earn overtime, commissions or bonuses, your employer must include these in at least 4 weeks of your statutory 5.6 weeks’ holiday pay. Some employers may apply these additional earnings across all 5.6 weeks, but they are only legally required to cover 4 weeks under the EU Working Time Directive.

Rolled-Up Holiday Pay

Employers must not spread holiday pay by adding a “rolled-up” amount on top of hourly wages. You must receive your holiday pay when you take it, not in advance through a higher hourly rate.

Holiday Less Than a Full Day

When you’ve accrued less than half a day of holiday, your employer must round it up to half a day. If you’ve accumulated between half a day and one full day, it must round up to a full day.

Disputing Your Holiday Pay

If you believe your holiday pay is incorrect or unclear, start by talking with your employer. Some employers provide a more generous holiday pay scheme, so review your contract first. Remember, you have 3 months minus 1 day from the date of the last incorrect payment to bring a claim to an employment tribunal.

For guidance on checking your holiday entitlement, see our Checking Holiday Entitlement page.