Free HR toolHoliday pay calculator: hours and money owed
Work out what someone is owed for untaken holiday when they leave, how much to pay for holiday when pay varies and how to pay rolled up holiday pay at 12.07%. Every answer shows both the hours and the money, for employers in England, Scotland and Wales.
Your result
Fill in the steps and press Calculate holiday pay. You'll see the hours and the money owed, plus how it was worked out.
An estimate based on GOV.UK guidance for England, Scotland and Wales. Northern Ireland has its own rules. This is not legal or payroll advice, so check contracts and payroll before relying on it. Need to know someone's full entitlement in days? Use the holiday entitlement calculator.
How to calculate holiday pay
Holiday pay trips up more small businesses than almost anything else on the payroll. The rules aren't hard once you see them laid out, so here's the short version for the three situations employers ask us about most.
The basics
Almost everyone who works for you is entitled to 5.6 weeks of paid holiday a year, which is 28 days for someone working five days a week. When they take it, they get a week's pay for each week of holiday. For someone on a fixed salary that's simply their normal pay. You can't pay someone instead of letting them take their statutory holiday, except when they leave.
Holiday pay for leavers
When someone leaves part way through the leave year, they're entitled to the holiday they've built up by their last day. Work out the share of the leave year they've worked, apply it to their full year entitlement and add any days carried over. Then take away what they've already taken. We round up to the nearest half day so nobody gets less than they're entitled to.
Anything left is paid in their final pay. A common way to get a daily rate is a week's pay divided by the days they work each week, so someone earning £26,000 a year over five days earns £100 a day. Your contract may set a different method, so check it first. Untaken statutory holiday must be paid even if someone is dismissed for gross misconduct.
If they've taken more holiday than they've built up, you can only take the difference back from final pay if this was agreed in writing beforehand, usually in the contract. We explain this step by step in how to calculate holiday pay for leavers.
When pay varies
If someone's pay goes up and down with overtime, commission or shifts, their holiday pay is based on their average pay. Add up their gross pay over the last 52 weeks in which they were paid and divide by the number of weeks. Skip weeks with no pay and go back no more than 104 weeks. If they've been with you for less than a year, use the full weeks they have worked.
For at least four of the 5.6 weeks, "normal" pay should include regular overtime, commission and payments linked to length of service or professional qualifications. Bonuses don't usually count. Read more in does holiday pay include overtime?
Irregular hours and the 12.07% rule
For irregular hours and part year workers in leave years starting on or after 1 April 2024, holiday builds up at 12.07% of the hours they work in each pay period. You can also choose to pay their holiday as you go, known as rolled up holiday pay, at 12.07% of their pay. It must show as a separate line on every payslip and it isn't allowed for staff with regular hours. Our guide to the 12.07% rule covers it in more detail.
Keep good records
From 6 April 2026 employers must keep records of annual leave and holiday pay for at least six years. A simple tracker or an HR system makes this painless. If you're planning who's off and when, our guide to managing annual leave requests and the free annual leave handover template will help.
Holiday pay FAQs
How do I calculate holiday pay for someone who is leaving?
Work out how much holiday they have built up by their last day, add anything carried over and take away what they have already taken. Multiply the days left by their daily rate of pay. A common daily rate is a week's pay divided by the number of days they work each week, unless the contract says otherwise.
Do I have to pay untaken holiday if I dismiss someone?
Yes. Untaken statutory holiday must be paid when someone leaves, even if they are dismissed for gross misconduct.
Can I deduct holiday that has been taken but not yet earned?
Only if it was agreed in writing beforehand, usually in the employment contract or handbook. Without that written agreement you cannot take it back from final pay.
How is holiday pay worked out when pay varies?
Use the average weekly pay over the last 52 weeks in which the worker was paid, skipping any weeks with no pay and going back no more than 104 weeks. If they have worked for less than 52 weeks, use the full weeks they have worked.
Does holiday pay include overtime and commission?
For at least 4 of the 5.6 weeks, holiday pay should reflect normal pay, which includes regular overtime, commission and payments linked to length of service or professional qualifications. Bonuses do not usually count.
What is rolled up holiday pay?
It is holiday pay added to each payslip as you go, at 12.07% of pay, instead of paying it when the holiday is taken. It is only allowed for irregular hours and part year workers in leave years starting on or after 1 April 2024 and must appear as a separate line on the payslip.
Why is the rolled up holiday pay rate 12.07%?
Workers get 5.6 weeks of holiday a year, which leaves 46.4 working weeks. 5.6 divided by 46.4 is 12.07%, so each hour worked earns 12.07% of an hour of holiday.
Can I pay staff instead of letting them take holiday?
Not for statutory holiday. The only time you can pay someone in place of taking statutory leave is when they leave the job. Any extra holiday you give on top of the legal minimum follows the rules in the contract.
Official sources
This calculator follows GOV.UK guidance on holiday pay. Last checked 14 October 2026.
One less thing on your plate
Not sure your holiday pay is right? Need a hand with a leaver? We'll check it with you in plain English.