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Holiday Pay Calculator

Average pay, not base pay, if your earnings vary.

Work out Holiday Pay. Average pay, not base pay, if your earnings vary. Shows the working, not just the answer.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
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Days at the start that attract no pay under the scheme

Holiday pay for the period

1,000.00

10 paid days at 100.00

Normal daily rate100.00
Rate while on leave100.00
Unpaid waiting days0
Paid days10
Total for the period1,000.00
Against normal pay for those days100%

Holiday pay is usually calculated on average pay over a reference period rather than on base pay alone, so regular overtime, commission and shift premiums normally count. Using base pay when your earnings vary understates what you are owed — enter your average weekly earnings, not your contractual minimum.

How the Holiday Pay Calculator works

Holiday pay from a weekly rate and the days taken. Where earnings vary, holiday pay is generally based on average pay over a reference period rather than on base pay alone — so regular overtime, commission and shift premiums normally count.

Also known as: vacation pay calculator · annual leave pay calculator · how much holiday pay am i owed · accrued holiday payout calculator

A week's pay, when pay varies

Holiday pay is meant to reflect normal earnings, so that taking leave is not financially discouraged. Where pay is fixed, a week's pay is straightforward. Where it varies, it is generally an average over a reference period — commonly the last 52 paid weeks, with unpaid weeks skipped rather than counted as zero.

That skipping detail matters more than it sounds. Counting unpaid weeks as zero would drag the average down for anyone with irregular work, which is precisely the group the averaging exists to protect. Reference periods are usually defined to look back further to find enough paid weeks.

The elements included have been litigated repeatedly and the direction of travel has been consistent: regular overtime, commission and shift premiums generally count, because they form part of normal remuneration. Calculating holiday pay on base pay alone systematically underpays anyone whose earnings vary.

Accrual, carry-over and payment on termination

Annual entitlement accrues through the year, commonly at a twelfth a month for salaried staff and by the hour worked for part-time and irregular workers. Accruing in hours rather than days is what makes it fair when shift lengths vary — converting to days shortchanges anyone with long shifts.

Statutory leave usually cannot be carried into the next year except in defined circumstances such as long-term sickness or family leave, because the entitlement exists so that rest is actually taken. Contractual leave above the statutory minimum follows whatever the contract says.

On termination, accrued untaken statutory leave is generally paid out at the daily rate. That is the one situation where statutory leave can lawfully be converted to cash in most systems, and it sits alongside rather than inside any redundancy calculation.

Part-time, irregular and the pro-rata question

Part-time entitlement is normally pro rata to hours. Someone working three days a week on a five-day full-time entitlement of 28 days receives about 16.8 days — which is the same amount of time off relative to their working pattern.

For genuinely irregular hours, expressing entitlement as a percentage of hours worked is the approach that survives contact with reality. Percentage-of-hours methods have been contested where they produce less than the statutory minimum for workers with long gaps, and the answer has moved in several jurisdictions.

Rolled-up holiday pay — adding a supplement to the hourly rate instead of paying at the time leave is taken — has been unlawful in several places because it removes the financial ability to take leave when it comes. Some jurisdictions have since permitted it specifically for irregular-hours workers, which is a good illustration of how unsettled this area remains.

Where to go next

The Holiday Pay question rarely arrives on its own. These are the ones that usually come with it:

Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.

Frequently asked questions

How is holiday pay calculated?

Usually as a week's pay for each week of leave, with a week's pay defined as average earnings over a reference period where hours or pay vary. Divide by working days per week to get the daily rate.

Does overtime count towards holiday pay?

Regular overtime generally does in jurisdictions that use an average-earnings test, on the principle that holiday pay should reflect normal earnings. Genuinely occasional overtime usually does not. The distinction has been litigated repeatedly.

How much holiday do I accrue per month?

Divide your annual entitlement by twelve. On 28 days that is 2.33 days a month, though most schemes accrue by the hour worked for part-time and irregular staff rather than in monthly blocks.

Do I get paid for unused holiday when I leave?

For statutory leave, generally yes — accrued but untaken days are paid at the daily rate on termination. Contractual leave above the statutory minimum may have different rules.

Can my employer refuse a holiday request?

Usually yes for a specific date, with notice, provided you can still take your full entitlement in the leave year. Refusing the entitlement itself is a different matter and generally unlawful.

What if I work irregular hours?

Then holiday pay is normally based on average earnings across a reference period — commonly the last 52 paid weeks, ignoring weeks with no pay. Using a single recent week produces a figure that does not reflect your year.

What is the minimum annual leave entitlement?

It varies enormously: much of Europe mandates four weeks or more plus public holidays, while some countries mandate none at all. Check your own jurisdiction rather than assuming a norm.

Can holiday be carried over to the next year?

Statutory leave often cannot be carried over except in defined circumstances such as long-term sickness or family leave. Contractual leave above the minimum is whatever the contract says.

How does leave accrue for part-time workers?

Pro rata to hours worked, usually expressed in hours rather than days so that variable shift lengths work out fairly. Converting to days for someone whose shifts vary in length systematically shortchanges them.

Is holiday pay owed on commission?

In jurisdictions using an average-earnings test, regular commission generally counts, on the principle that holiday pay should reflect normal earnings. This has been repeatedly litigated and the answer has moved over time.

What is rolled-up holiday pay?

Adding a holiday supplement to the hourly rate instead of paying at the time leave is taken. It has been unlawful in several jurisdictions because it discourages taking leave, though some have since permitted it for irregular-hours workers.

Can I be paid instead of taking leave?

For statutory leave, generally only on termination — the entitlement exists so that rest is actually taken. Contractual leave above the minimum can often be bought out if the contract allows.

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