How do I calculate holiday entitlement?

Whether your employees are full time or part time, here is how you calculate their holiday.

The amount of leave will depend on how many days or hours your employee will work, along with any extra entitlements which you may have chosen to be included within their contract with your company. 

  • Full-time employees are entitled by law to at least 28 days holiday each year. This can include the 8 public bank holidays. Many companies choose to offer additional days, often linked to the length of service or over the Christmas period. Holiday pay is paid at the employee's usual rate. 
  • Part-time employees receive a proportion of the holiday entitlement based on the proportion of the week they usually work. For example, someone working 3 out of 5 days each week, is entitled to three-fifths of the standard holiday entitlement. 
  • Part-time employees working shorter days will receive the same number of days holiday as their colleagues. For example, someone working 4 hours per day, Monday to Friday, will get 28 days holiday per year (based on 5 days per week). Holiday pay is paid at the employee's usual rate. 
  • Casual employees, or those working variable hours, accrue holiday at a rate of 12.07% per hour. This gets complicated quickly and the government calculator below can help work out the exact entitlement. It is important to note that the holiday pay for casual workers should be based on the average earnings of the previous 52-week period and not a 12.07% flat calculation, following the tribunal case (Harper Trust v Brazel) in 2019. 

Here is a helpful link to the governments holiday calculator where you can check any holiday entitlement: Government holiday calculator

If you have any questions you can always email us at info@hrcircleuk.com