Holiday pay when your hours change every week

The 12.07% rule

For leave years starting on or after 1 April 2024, irregular-hours and part-year workers build up holiday at 12.07% of the hours they actually work in each pay period. Work 30 hours in a week and you build up about 3.6 hours of holiday.

Rolled-up holiday pay

Your employer can choose to pay holiday as an extra 12.07% on every payslip instead of paying you when you take time off. If they do, it must be shown as a separate line on your payslip. If you can't see it, ask.

What counts as irregular hours

You're on irregular hours if the number of paid hours you work each pay period is wholly or mostly variable under your contract, as on many zero-hours and casual contracts.

Check it

Use the holiday pay calculator with your hours for the period, and compare with your payslip.

A worked example

In a four-week pay period you work 38, 22, 45 and 30 hours: 135 hours in total. Holiday builds up at 12.07%, so you earn about 16.3 hours of holiday. At £12.71 an hour, that's worth £207.10.

If your employer rolls holiday pay up, you'd see an extra 12.07% on your payslip: on £1,715.85 of basic pay, that's £207.10 as a separate holiday line.

What goes into a week's holiday pay

When you take holiday (rather than getting it rolled up), it should be paid at your normal rate. For irregular hours, that's your average pay over the last 52 weeks you actually worked, and it includes regular overtime, shift premiums and commission, not just basic pay.

When you leave

Any holiday you've built up but not taken must be paid when you leave. On a short or seasonal contract, check your final payslip has a holiday line.

Keep your own record

With Shiftaan you can mark each shift paid, part-paid or disputed, and see what every employer still owes you. It's free for up to 3 companies.

Common questions