Answers · UK 2025/26
How is statutory holiday pay calculated in the UK?
Full-time workers are entitled to 5.6 weeks (28 days) of statutory paid holiday per year. Holiday pay must include regular overtime and commission following the Lock v British Gas case. Variable-pay workers use a 52-week average of actual pay earned to calculate their holiday pay rate.
Full answer
Statutory holiday pay in the UK is governed by the Working Time Regulations 1998 and subsequent case law that has significantly expanded what must be included in the calculation. Basic entitlement: - 5.6 weeks of paid annual leave per year for full-time workers (28 days including bank holidays, or 20 days holiday plus 8 bank holidays). - Part-time workers receive a pro-rated amount (e.g., 3 days per week = 5.6 x 3 = 16.8 days). What must be included in holiday pay (post-Lock v British Gas): - Basic salary or wage. - Regular overtime (even if not guaranteed). - Regular commission payments. - Shift allowances and other regular payments. - Certain travel allowances that are not expense reimbursements. What is NOT included: - Purely discretionary, genuinely irregular overtime. - One-off bonuses not linked to time worked. - Expenses reimbursements. The 52-week reference period: - For workers with variable pay, holiday pay is calculated using the average weekly pay earned over the 52 weeks before the holiday (excluding any weeks where no pay was received, going back up to 104 weeks to find 52 paid weeks). Rolled-up holiday pay: - From 1 January 2024, rolled-up holiday pay is permitted for irregular-hours workers and part-year workers. This means 12.07% is added to each payslip to cover holiday pay, rather than paying separately when leave is taken. The worker must be informed. Holiday pay underpayments: - Claims for underpaid holiday pay can be brought to an Employment Tribunal as an unlawful deduction from wages. Workers have 3 months (minus one day) from the underpayment to bring a claim.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.