Holiday entitlement (2024)

Workers are entitled to a week’s pay for each week of statutory leave that they take.

Most workers are entitled to 5.6 weeks’ paid holiday a year. You can use the holiday calculator to work out how much leave someone should get.

How to work out a week’s pay

A week’s pay is worked out according to the kind of hours someone works and how they’re paid for the hours. This includes full-time, part-time, term-time and casual workers.

Working pattern How a week’s pay is calculated
Regular hours and fixed pay (full- or part-time) A worker’s pay for a week
Shift work with regular hours (full- or part-time) The average number of weekly fixed hours a worker has worked in the previous 52 weeks, at their average hourly rate
Irregular-hours and part-year work A worker’s average pay from the previous 52 weeks (only counting weeks in which they were paid)

Calculating average hourly or weekly rate

To calculate average hourly rate, only the hours worked and how much was paid for them should be counted. Take the average rate over the last 52 weeks.

A ‘week’ usually runs from Sunday to Saturday. Only use another 7-day period (like Thursday to Wednesday) if that’s how a worker’s pay is calculated.

If no pay was paid in any week, count back another week so the rate is based on 52 weeks in which pay was paid. You can count back a maximum of 104 weeks to find these.

If a worker has less than 52 weeks of pay, use the average pay rate for the full weeks they have worked.

Workers who are paid monthly

To work out a week’s pay for someone who’s paid monthly:

  1. Calculate the worker’s average hourly pay for the last month. Do this by dividing the month’s pay by the number of hours worked in the month.

  2. Calculate the weekly pay. Do this by multiplying the average hourly pay by the number of hours worked in a week.

Use the weekly pay calculation for each of the last 52 weeks to work out an average week’s pay.

‘Basic’ and ‘normal’ rate of pay

For regular-hours workers (full- or part-time), employers must pay:

  • at least 4 weeks of the worker’s statutory entitlement at their ‘normal’ rate of pay
  • the remaining 1.6 weeks at a ‘basic’ rate of pay

For workers who work part of the year, employers must also follow these rules if the worker’s leave year began on or before 31 March 2024.

For irregular-hours workers or those who work part of the year, all leave must be paid at their ‘normal’ rate of pay.

‘Normal’ rate of pay includes commission, regular overtime payments, and any payments related to length of service or professional qualifications. It does not usually include bonus payments.

Rolled-up holiday pay

For regular-hours workers (full- or part- time), an employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’).

Employers can use rolled-up holiday pay for irregular-hours and part-year workers, unless their leave year began on or before 31 March 2024.

More information

There’s guidance for calculating holiday pay for workers without fixed hours or pay, which includes several examples.

You can also contact the Advisory, Conciliation and Arbitration Service (Acas) with questions about general holiday pay issues.

Acas helpline
Telephone: 0300 123 11 00
Textphone: 18001 0300 123 1100
Monday to Friday, 8am to 6pm
Find out about call charges

Holiday entitlement (2024)

FAQs

What is the meaning of holiday entitlement? ›

holiday entitlement in British English

(ˈhɒlɪˌdeɪ ɪnˈtaɪtəlmənt ) noun. 1. the number of days of paid holiday in a year that a worker is entitled to take.

What is the average holiday entitlement in the US? ›

The number of days varies from employer to employer, but on average, US workers receive around ten days of paid holiday each year. In addition, time off is often accrued, which means that US staff will need to be working in their job for 12 months before they're entitled to ten days of holiday.

How is holiday entitlement worked out? ›

The basic way to work out how many days holiday an employee is entitled to is to multiply the number of days a week they work by 5.6. That gives someone working a five-day week the 28 days we've already mentioned. Someone who is part-time and only works three days a week would be entitled to 3 x 5.6 = 16.8 days.

What is the meaning of annual entitlement? ›

Annual Leave Entitlement means the right to take a set amount of leave per month, or on specific dates, or at a defined rate per day. Seen in 1 SEC filing. Annual Leave Entitlement means the right of an employee to take a 5-week annual leave each year which equals to 25 days annually.

What is the leave entitlement? ›

Annual leave entitlements differ depending on the nature of employment and are outlined in the National Employment Standards. Full-time employees are entitled to four weeks or 20 days of paid annual leave per year, which accrues cumulatively from the first day of employment and doesn't expire.

What is the meaning of holiday allowance? ›

A holiday allowance is a specified amount of paid time off that an employee is entitled to take as leave during the course of a year.

How do employees accrue holiday? ›

What is accrued holiday? Accrued holiday is where employees build up their annual leave over the first year of their employment. Annual leave is built up each month per employee. For example, after 3 months of working in the business, an employee would have accrued a quarter of their annual entitlement.

How is holiday pay usually calculated? ›

In the United States, holiday pay is typically 1.5 times the worker's average pay. It implies that the workers are paid the regular rate +1/2 of their standard rate for each work hour on holiday. Several private and public companies offer holiday bonus checks or paid time off during holidays.

How are holidays determined? ›

In the United States, federal paid holidays are determined by Congress, with the first four dating back to 1870. Back then and even today, the goal has always been to give time off to federal workers as a sign of respect and gratitude.

What is considered an entitlement? ›

Encyclopædia Britannica, Inc. entitlement, generally, any government-provided or government-managed benefit or service to which some or all individuals are entitled by law.

What is meant by entitlement? ›

: a right to benefits specified especially by law or contract. 2. : belief that one is deserving of or entitled to certain privileges. 3. : a government program providing benefits to members of a specified group.

What does it mean to be full of entitlement? ›

the feeling that you have the right to do or have what you want without having to work for it or deserve it, just because of who you are: a classic case of male entitlement.

What is the legal definition of holiday pay? ›

Holiday pay is any form of alternative compensation an employer offers employees during holidays. It may take the form of fully or partially paid time off or of a bonus or additional hourly pay for work performed on a holiday.

What is the standard holiday entitlement in the UK? ›

The minimum holiday entitlement that an employer must provide to a full-time worker is 28 days a year (or 5.6 weeks). The 28 days is split between 20 days 'Euro leave', which stems from the European Working Time Directive (and was subsequently codified into the UK's Working Time Regulations).

Can my employer reduce my holiday entitlement in the UK? ›

Although your employer can refuse to give you holiday leave at a certain time, they cannot refuse to let you take your minimum leave entitlement of 28 days for the year.

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