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Holiday pay calculation in the UK depends on your working pattern — and getting it right matters because underpayment claims can go back up to two years. Salaried employees get a normal week's pay for each week of holiday taken, including any regular allowances. Hourly workers use a 52-week reference period averaging normal pay including regular overtime, commission + shift premiums. Irregular workers (zero-hour + part-year) can now use the 12.07% accrual method or rolled-up holiday pay, both legalised in April 2024. This guide covers all three approaches with detailed worked examples + how to check your own pay.
Checked against the 2 sources listed below · Last reviewed 14 June 2026
Each week of holiday = one normal week's pay. Includes regular fixed allowances (car, phone) if they don't reduce during leave.
Example: £35,000 salary → £673.08/week gross → £673.08 per week of holiday.
Method 2 — Hourly worker with regular hours
Same as salaried if hours are consistent. Include regular overtime + commission averaged over 52 weeks.
Method 3 — Hourly worker with variable hours
52-week reference period:
- Add up pay in last 52 weeks worked (excluding zero-pay weeks + weeks of statutory leave)
- Divide by 52 to get average weekly pay
- One week's holiday = that average
Normal rate £12/hr → rolled-up rate £13.45/hr (12.07% uplift)
Payslip shows £12 basic + £1.45 holiday accrual
In short
Salaried: normal week. Hourly regular: same. Variable: 52-week average including overtime + commission. Irregular: 12.07% accrual or rolled-up.
Frequently asked questions
Should I include overtime in holiday pay?
Regular overtime + commission must be included in the 4-week EU statutory holiday (Bear Scotland). Best practice: include throughout 5.6 weeks.
What's the 12.07% number?
Calculated as 5.6 / 46.4 = 12.07% — the ratio of statutory holiday weeks to non-holiday weeks in a year.
Can rolled-up holiday pay be given to all workers?
No — only irregular-hour + part-year workers since April 2024. Salaried + regular-hour workers must take actual holiday.
What if I got a bonus during the reference period?
Include performance-related regular bonuses. Exclude discretionary one-off signing bonuses or long-service awards.
Does statutory sick pay affect holiday pay calculation?
Weeks receiving only SSP are excluded from the 52-week reference. If reference has fewer than 52 pay-receiving weeks, use however many exist (up to 104 weeks back).
UK monthly budget planner — A workable UK monthly budget planner: confirm your real net pay, list fixed essentials, list variable essentials, set a discretionary cap, set a savings target. Total must equal net pay. Use 50/30/20 as a starting guide, adapt for your housing situation.
More on related topics
Attachment of earnings — AEO = court order requiring employer to deduct debt from wages. Protected earnings threshold applies.
Auto-enrolment duties — Auto-enrolment = employer duty since 2012. 8% total minimum. Re-enrolment every 3 years.
Bank holidays — No statutory right to bank holiday off. Contract decides. 2026 UK has 8 bank holidays.
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Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.