Calculating Holiday Pay

Summer season is here and especially during school holidays, many workers are looking to take time off work, so employers need to check their workers are getting the holiday they are owed. The definition of a worker according to the government is a person that has a contract or other arrangement to do work or services personally for a reward. That means full-time, part-time, casual and agency workers. When calculating holiday pay, employers must consider whether employees are frequently required to work overtime and if this is being calculated in their holiday pay.

All workers, apart from those that are self-employed are entitled to 5.6 weeks’ paid holiday a year.
For full-time workers that is 28 days a year (4 weeks for a 5 day week, including bank holidays) divided by 12 months = 2.33 days holiday entitlement per month.
For part-time workers that is still the equivalent of 28 days divided by 5 days times the number of days worked a week.

For example if you work a 3 day week.

28 days divided by 5 days multiplied by 3 days = 16.8 days holiday per year.

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Tania

Tania has over 30 years payroll experience, 21 with a UK Top 10 accountancy firm.
Tania

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