How Holiday Pay Is Calculated in the UK

The basic rule

Workers are entitled to 5.6 weeks of paid holiday a year, and holiday pay should be what you would normally earn for that time. If you work set hours at a fixed rate it is straightforward: a week of holiday is a normal week’s pay.

What counts as normal pay

Holiday pay should include more than basic pay if you regularly receive:

• Regular overtime that you are required to work.
• Commission and bonuses linked to your work.
• Allowances and premiums that you normally receive, such as shift allowances.

Irregular hours and variable pay

If your pay varies, your holiday pay is based on an average over the previous 52 weeks. Weeks in which you were not paid are normally ignored and replaced with earlier weeks, going back up to 104 weeks.

Rolled-up holiday pay

For workers with irregular hours or who work part of the year, employers can pay holiday as an extra 12.07% on top of the pay for each hour worked, instead of paying it when the holiday is taken. This must be shown separately on the payslip. The 12.07% comes from 5.6 weeks of holiday as a share of the 46.4 weeks actually worked in a year (5.6 ÷ 46.4).

Working out your entitlement

Use our holiday entitlement calculator to see how many days or hours you are due, including for part-year and irregular hours, and our hourly rate to salary calculator to convert your pay.

This guide is general information, not financial or legal advice. Rates checked 8 October 2026 against GOV.UK.