Are the calculators HMRC compliant?

Our calculations are built to align with HMRC guidance and use the latest April 2026 rates. However, they're for guidance only – always verify complex cases with HMRC or a qualified professional.

Yes. We're ICO registered (ZC013807) and calculations run in your browser – we don't store sensitive payroll data unless you explicitly save it to your account.

Do you integrate with payroll software?

Reckonly tools work as standalone calculators alongside your existing software like Sage, Xero, and QuickBooks. No integration required – use our tools as a pre-check layer.

What's the VAT registration threshold?

The UK VAT registration threshold is £95,000 taxable turnover in a rolling 12-month period. You must register within 30 days of exceeding this threshold.

How is holiday pay calculated in the UK?

Holiday pay is calculated based on a worker's normal weekly earnings. For workers with regular hours, it's their usual weekly pay. For workers with irregular hours or variable pay (including overtime, commission, and regular bonuses), employers must use a 52-week reference period — using only weeks where the worker was actually paid, looking back up to 104 weeks if necessary. This reference period was extended from 12 weeks in April 2020.

How many days holiday are UK workers entitled to?

Full-time workers are entitled to a minimum of 5.6 weeks (28 days) paid holiday per year under the Working Time Regulations 1998. This can include bank holidays. Part-time workers receive a pro-rata entitlement. For example, someone working 3 days per week gets 3 × 5.6 = 16.8 days. There is no statutory entitlement above 28 days, though employers can offer more.

Do bank holidays count towards the 28-day entitlement?

Yes, employers can include the 8 UK bank holidays within the 28-day statutory minimum. This means the additional contractual holiday above bank holidays would be 20 days for a full-time worker. However, there is no legal right to time off on bank holidays — this depends on the employment contract.

How does holiday pay work for zero-hours workers?

Zero-hours and irregular-hours workers accrue holiday based on hours worked. From April 2024, the holiday entitlement is calculated as 12.07% of hours worked in each pay period. Holiday pay is then based on the average weekly pay over the 52-week reference period (ignoring weeks with no pay, looking back up to 104 weeks).

Can holiday pay include overtime and commission?

Yes. Following the landmark Bear Scotland v Fulton ruling and subsequent case law, regular overtime (whether compulsory or voluntary but regularly worked), commission, and other regular payments must be included when calculating holiday pay for the first 4 weeks of statutory leave (the EU-derived entitlement). The additional 1.6 weeks can be calculated at basic pay only.

What happens to unused holiday when someone leaves?

Workers are entitled to payment in lieu of any accrued but untaken statutory holiday when their employment ends. The calculation is: (days accrued - days taken) × daily rate. If a worker has taken more holiday than accrued, employers can only deduct the overpayment if there is a clear contractual term allowing this.

Updated for 2026/27

Free Holiday Pay Calculator 2026/27

Calculate statutory holiday pay entitlement for any worker type — regular, irregular, part-time, or zero-hours. Covers the 52-week reference period, overtime inclusion, and leaving entitlement in line with the latest Working Time Regulations.

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Understanding UK Holiday Pay

UK workers' holiday pay rights are governed by the Working Time Regulations 1998, which implement the EU Working Time Directive into domestic law. Every worker — including part-time, agency, zero-hours, and irregular-hours workers — is entitled to a minimum of 5.6 weeks (28 days) of paid annual leave per year. This statutory floor cannot be contracted out of.

The rate at which holiday is paid has been the subject of significant litigation. The Employment Appeal Tribunal's landmark ruling in Bear Scotland v Fulton [2014] established that regular overtime and similar recurring payments must be reflected in holiday pay. Subsequent CJEU and domestic case law has extended this to commission and other contractual variable elements, creating a two-tier calculation: the first 4 weeks at "full" pay, the remaining 1.6 weeks at basic pay only.

Underpaid holiday pay carries significant risk. Workers can bring Employment Tribunal claims for unlawful deductions from wages going back up to two years from the last underpayment in a series.

Holiday Pay Changes for 2026-27

The most significant structural reform in recent years came into force on 1 April 2024 via the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023. Those reforms are now bedded in for 2026-27:

Rolled-up holiday pay is now legal for irregular and part-year workers — employers can add 12.07% to each pay packet in lieu of paid leave, provided it is shown as a separate payment on the payslip.
The 52-week reference period (introduced April 2020) remains the statutory method for irregular-hours workers, looking back up to 104 weeks and ignoring weeks with no pay.
Irregular-hours workers and part-year workers now accrue holiday at 12.07% of hours worked in each pay period — replacing the previous accrual method that used calendar weeks.
The statutory leave entitlement for irregular workers remains 5.6 weeks, split into 4 weeks' EU-derived leave and 1.6 weeks' additional leave — different payment rules may apply to each pot.

How Our Calculator Works

Our holiday pay calculator handles every worker scenario. Select your worker type, enter your pay details, and receive an instant statutory entitlement and payment rate breakdown.

Regular Hours

For employees with fixed hours and pay, holiday pay is simply their normal weekly wage. Our calculator handles annual salary or weekly/hourly rates.

Irregular Hours

For variable-hours workers, we apply the statutory 52-week reference period, automatically excluding weeks with no pay and looking back up to 104 weeks.

Part-Time Pro-Rata

Part-time entitlement is calculated as days worked per week × 5.6 weeks. Enter your contracted days and we handle the pro-rata calculation instantly.

Overtime Inclusion

Regular overtime, commission, and other recurring payments are included in your holiday pay rate for the first 4 weeks of statutory leave, in line with Bear Scotland v Fulton.

Leaving Entitlement

Calculate accrued-but-untaken holiday on termination (payment in lieu) or overpaid holiday to recover, based on your leave year and start/end date.

Reference Period

Automatically models the 52-week reference period using paid-weeks-only logic. Handles rolled-up holiday pay for irregular workers under the April 2024 reforms.

Holiday Pay Frequently Asked Questions

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