This calculator works out how much holiday an irregular-hours or part-year worker builds up in a pay period, and the rolled-up holiday pay to add to their wages if you use that method. For leave years starting on or after 1 April 2024, these workers accrue holiday at 12.07% of the hours they actually work in each pay period. If you pay rolled-up holiday pay instead, it is 12.07% of their total pay for the period and must be shown as a separate item on the payslip.
Quick answers
- Accrual rate: irregular-hours and part-year workers build up holiday at 12.07% of the hours they actually work in each pay period.
- Where 12.07% comes from: 5.6 weeks of holiday divided by the 46.4 weeks a year left for work (52 minus 5.6).
- Rolled-up holiday pay: employers can pay 12.07% of total pay on top of each period’s wages instead of paying holiday when it is taken.
- Start date: both methods apply only to leave years beginning on or after 1 April 2024.
- Payslip rule: rolled-up holiday pay must be clearly marked as a separate item on each payslip, and the worker must be told it is being used.
- Who it is for: only workers whose paid hours are wholly or mostly variable, or who work only part of the year with unpaid weeks off; using it for anyone else breaks the law.
How the calculator works
You enter the hours worked in the pay period and the hourly rate.
- Holiday hours accrued. Hours worked multiplied by 12.07%.
- Value of that holiday. Accrued hours multiplied by the hourly rate.
- Rolled-up holiday pay. Hours multiplied by the rate gives the pay for the period; 12.07% of that is the rolled-up holiday pay, shown to the penny.
Holiday should be paid at the worker’s normal rate, which usually includes regular overtime and commission but not bonuses. If those vary, use an average hourly rate rather than the basic rate.
Worked example
A care worker on irregular hours works 80 hours in a month at £12.71 an hour, the National Living Wage from April 2026.
| Step | Working | Result |
|---|---|---|
| Pay for the period | 80 hours × £12.71 | £1,016.80 |
| Holiday hours accrued | 80 × 12.07% | 9.66 hours |
| Value of that holiday | 9.66 hours × £12.71 | about £123 |
| Rolled-up holiday pay | 12.07% of £1,016.80 | £122.73 |
Under the accrual method the worker can take the 9.66 hours as paid leave from the next pay period. Under rolled-up pay, £122.73 is added to this month’s wages as a separate line and no further pay is due when they take time off.
How to set up holiday for irregular-hours workers
Choose one method for each worker and apply it from the start of their leave year.
- Check the worker fits a category. Irregular-hours means paid hours are wholly or mostly variable under the contract. Part-year means they work only part of the year, with periods of at least a week unpaid.
- Check the leave year. The 12.07% accrual and rolled-up pay are only available for leave years beginning on or after 1 April 2024.
- Pick accrual or rolled-up pay. Accrual builds a holiday balance; rolled-up pay adds 12.07% of pay each period.
- Tell the worker and show it on the payslip. Rolled-up pay must appear as its own item.
- Keep records. From 6 April 2026 employers must keep records of annual leave and holiday pay for 6 years.
Workers with fixed hours do not use 12.07%; use the holiday entitlement calculator instead. Our guide to holiday pay for irregular hours workers covers the reference period and leavers, and the National Minimum Wage 2026 page has the current hourly rates.
Sources
- Holiday pay and entitlement reforms from 1 January 2024 (Department for Business and Trade)
- Holiday entitlement: holiday pay (GOV.UK)
- Holiday entitlement: entitlement (GOV.UK)
- Working Time Regulations 1998, regulation 13 (legislation.gov.uk)
Frequently asked questions
Is 12.07% holiday pay legal?
Yes, for irregular-hours and part-year workers in leave years starting on or after 1 April 2024. It is not allowed for workers with regular hours.
Do I work out 12.07% on hours or pay?
On hours for accrual and on pay for rolled-up holiday pay. Accrual is 12.07% of hours worked; rolled-up pay is 12.07% of total pay for the period.
Does overtime count for holiday pay?
Regular overtime and commission usually count towards normal pay. Bonuses usually do not.
Can I pay rolled-up holiday pay to a full-time worker?
No. Regular-hours workers cannot have holiday pay built into their hourly rate, and doing so breaks the law.
Could the rules change again?
Possibly. The government’s June 2026 consultation on holiday pay compliance and enforcement asks employers how they use rolled-up holiday pay, so check for updates.