Holiday entitlement and holiday pay are two different things — and both are frequently misunderstood. This guide explains how much leave you are entitled to, how your holiday pay should be calculated, and what to do if you think you have been underpaid.
For the full PocketWise guide to employment rights, see the Employment Rights Hub.
Statutory holiday entitlement 2026/27
All UK workers (not just employees) are entitled to at least 5.6 weeks of paid annual leave. This includes workers on zero-hours contracts, agency workers, and part-time staff — though casual workers may use rolled-up holiday pay instead.
Full-time workers (5 days per week)
5.6 weeks × 5 days = 28 days per year
This can include bank holidays (up to 8 in England and Wales) — your employer decides. Most employers include bank holidays in the 28-day total.
Part-time and variable-hours workers
Part-time pro-rata entitlement:
5.6 weeks × your working days per week
| Working days/week | Holiday entitlement |
|---|---|
| 1 day | 5.6 days |
| 2 days | 11.2 days |
| 3 days | 16.8 days |
| 4 days | 22.4 days |
| 5 days | 28 days |
For workers with irregular hours (since April 2024):
The entitlement is calculated as 12.07% of hours worked in the previous year. This applies to workers on irregular hours contracts or those who work part of the year only. The 12.07% figure comes from: 5.6 ÷ (52 − 5.6) = 0.1207.
How holiday pay is calculated
Since April 2020, holiday pay for most workers must reflect average pay over the previous 52 weeks — not just basic contractual pay.
What counts in the 52-week average
| Included | Excluded |
|---|---|
| Basic salary | Discretionary bonuses |
| Regular overtime | One-off payments |
| Regular commission | Genuine expenses |
| Shift premiums paid regularly | Overtime that is truly voluntary and irregular |
| Allowances (e.g. location supplement) |
How to calculate your average weekly pay
- Find your total pay over the last 52 weeks (or fewer if you’ve worked less)
- Divide by the number of weeks you were paid (weeks with no pay are skipped and replaced by earlier weeks, going back up to 104 weeks)
- This gives your average weekly pay — which should be used for each week of holiday taken
Example:
Over 52 weeks, a shift worker received:
- Basic pay: £22,000
- Regular overtime: £4,000
- Shift premium: £1,500
- Total: £27,500 over 52 working weeks
Average weekly pay: £27,500 ÷ 52 = £528.85/week
If this worker takes 2 weeks’ holiday, they should receive: 2 × £528.85 = £1,057.70 — not 2 × (£22,000 ÷ 52) = £846.15 (basic only).
The difference (£211.55 for just 2 weeks) shows why many workers have been systematically underpaid.
Rolled-up holiday pay (from April 2024)
For workers with irregular hours or part-year contracts, employers can now legally pay rolled-up holiday pay — an additional 12.07% added to each pay packet, instead of paying holiday pay when leave is taken.
Example:
A delivery driver earns £500 in a week. With rolled-up holiday pay:
- Rolled-up addition: £500 × 12.07% = £60.35
- Total pay: £560.35
The worker can still take time off, but no additional payment is made during the leave.
Holiday entitlement when starting or leaving a job
Holiday entitlement is accrued from day one. If you start or leave mid-year, you are entitled to a proportion of the annual entitlement.
Accrual rate: 5.6 weeks ÷ 52 weeks = 0.1077 weeks per week worked
Example: Starting on 1 October, working until 5 April (26 weeks into the holiday year):
- Entitlement: 26 × 0.1077 = 2.8 weeks (14 days for a 5-day worker)
When leaving, any accrued but untaken holiday should be paid as a lump sum (holiday pay in lieu).
Can holiday be refused or capped?
- Your employer can refuse specific dates (with reasonable notice — usually twice the period requested)
- They can require you to take holiday at specific times (e.g. a Christmas shutdown)
- They cannot force you to forfeit holiday you were unable to take due to sickness or statutory leave
If you believe holiday pay has been calculated incorrectly, raise it with your employer in writing first. If unresolved, ACAS early conciliation or an employment tribunal claim (within 3 months of the underpayment) is the next step.