In the UK, workers get a week's pay for each week of statutory holiday they take, and most are entitled to 5.6 weeks a year. For regular hours on fixed pay, a week's pay is simply their normal weekly pay. For shifts, irregular hours or part-year work, it's an average over the previous 52 weeks in which they were paid.
The rule that's easiest to get wrong is what counts as pay, because basic pay alone often isn't enough. Here's how GOV.UK says it works, including the rule on rolled-up holiday pay and a record-keeping duty that started in April 2026.
How a week's pay is worked out
| Working pattern | A week's holiday pay is |
|---|---|
| Regular hours and fixed pay (full or part time) | The worker's pay for a week |
| Shift work with regular hours | Average weekly fixed hours over the previous 52 weeks, at the average hourly rate |
| Irregular hours and part-year work | Average pay over the previous 52 weeks, only counting weeks in which they were paid |
Some details decide the right number:
- A week usually runs Sunday to Saturday, unless pay is calculated over a different 7-day period.
- If a week had no pay, count back another week. You can go back a maximum of 104 weeks to find 52 paid weeks.
- If someone has worked less than 52 weeks, use the average over the full weeks they've worked.
- For monthly pay, divide last month's pay by the hours worked to get an hourly rate, multiply by the weekly hours, and average that across the 52 weeks.
How many weeks the pay covers
Most workers on a 5-day week must get at least 28 days of paid leave a year, which is 5.6 weeks. Part-time workers on regular hours get 5.6 weeks too, so someone working 3 days a week gets at least 16.8 days. Statutory paid holiday is capped at 28 days, even for a 6-day week. Bank holidays don't have to be paid leave, but you can count them as part of the statutory allowance. Irregular-hours and part-year workers build up leave based on the hours they've worked.
Normal pay vs basic pay: the part employers get wrong
This is the detail people miss. For regular-hours workers, at least 4 weeks of the 5.6 must be paid at the worker's normal rate, and only the remaining 1.6 weeks can be paid at the basic rate. Normal pay includes commission, regular overtime and payments linked to length of service or professional qualifications. It doesn't usually include bonuses.
For irregular-hours and part-year workers, all of their leave must be paid at the normal rate. So if your team earns regular overtime or commission, paying only base salary for every holiday week underpays them.
Rolled-up holiday pay: when it's allowed
Rolled-up holiday pay means adding an amount for holiday to the hourly rate instead of paying it when the leave is taken.
| Worker type | Can you roll up holiday pay? |
|---|---|
| Regular hours (full or part time) | No |
| Irregular hours or part-year, leave year starting on or before 31 March 2024 | No |
| Irregular hours or part-year, leave year starting after that | Yes |
GOV.UK's separate guidance on calculating holiday pay for workers without fixed hours or pay has worked examples, and it notes the reference period became 52 weeks (from 12) on 6 April 2020.
The record-keeping rule from April 2026
From 6 April 2026, employers must keep detailed records of annual leave and holiday pay for at least 6 years from the date they were made, such as the days taken and the holiday pay paid. You choose how to keep them, but you may be fined if you can't show them. If you run payroll on spreadsheets, add a holiday tab now.
Holiday pay when someone leaves
- The only time statutory leave can be paid instead of taken is when a worker leaves. That's payment in lieu.
- You must pay for untaken statutory leave even if the worker is dismissed for gross misconduct.
- If they've taken more leave than they'd earned, you can't take it out of their final pay unless that was agreed in writing beforehand.
- They may be able to use the rest of their leave during their notice period.
How much leave someone gets in the first place is covered in my guide to UK holiday entitlement. If you employ people on variable hours, my guide to zero hours contracts sits alongside this one.
Booking and refusing leave
Unless the contract says otherwise, a worker gives notice of at least twice the leave they want, so 1 day off needs 2 days' notice. An employer refusing or cancelling leave must give notice at least equal to the leave requested. You can refuse leave at particular times, but you can't refuse to let someone take it at all.
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My verdict
Holiday pay isn't complicated once you know the two rules that matter: use the 52-week average for anyone whose pay varies, and include commission and regular overtime for at least 4 weeks. Keep 6 years of records from now on, and only roll up holiday pay for irregular-hours or part-year staff. If a case doesn't fit, Acas runs a helpline for holiday pay questions.
This guide is part of my Creator Pay Rates: What YouTube, TikTok, Instagram, Facebook and Snapchat Really Pay (75 Answers).
Frequently asked questions
How is holiday pay calculated in the UK?
Workers get a week's pay for each week of leave. For fixed pay it's their normal weekly pay; for shifts, irregular hours or part-year work it's an average over the previous 52 paid weeks.
Does holiday pay include overtime and commission?
Yes for at least 4 weeks of leave. Normal pay includes commission, regular overtime and payments linked to length of service or professional qualifications. Bonuses usually aren't included.
Is rolled-up holiday pay legal in the UK?
Only for irregular-hours and part-year workers whose leave year began after 31 March 2024. It's not allowed for regular-hours workers.
How far back do you go to calculate holiday pay?
Use the previous 52 weeks in which the worker was paid, counting back a maximum of 104 weeks.
Can I pay staff instead of them taking holiday?
Only when they leave the job. Payment in lieu of untaken statutory leave is due even after a gross misconduct dismissal.
How long must employers keep holiday pay records?
From 6 April 2026, at least 6 years from the date the records were made.