Free UK Tool

Holiday Pay Calculator

Work out how much you should be paid when you take holiday — for salaried, hourly, and variable-hours workers.

Calculate your holiday pay

How holiday pay is calculated

For workers with normal working hours and fixed pay, a week's holiday pay is your normal weekly earnings. For workers with variable pay (overtime, commission, bonuses), employers must use a 52-week average reference period — looking back at the last 52 weeks in which you were paid. This was confirmed by the Supreme Court in Harpur Trust v Brazel (2022).

Your employer cannot pay you less than your normal remuneration when you take holiday. This includes regular overtime, commission, and bonuses that form part of your normal pay.

Important notes

  • Holiday pay is subject to Income Tax and National Insurance in the normal way — the figures shown are gross (before tax).
  • This calculator shows the minimum you must receive under UK law. Your contract may provide more.
  • For rolled-up holiday pay (12.07% added to each payslip), this only applies to irregular-hours and part-year workers from April 2024.
  • If you believe your employer is underpaying your holiday pay, contact ACAS for free advice.

Holiday pay FAQs

How is holiday pay calculated in the UK?

For workers with fixed hours and pay, holiday pay is normally based on normal weekly earnings. For workers with variable pay, employers use an average of the last 52 paid weeks.

Should overtime, commission or bonuses count in holiday pay?

Regular overtime, commission and bonuses that form part of normal remuneration should be included so holiday pay reflects normal pay.

Is holiday pay taxable?

Yes. Holiday pay is treated as normal pay and is subject to Income Tax and National Insurance.

Can rolled-up holiday pay be used?

Rolled-up holiday pay applies only to irregular-hours and part-year workers from April 2024. Other workers should normally be paid when holiday is taken.