Guide

Irregular hours holiday pay: the 12.07% rule

Updated

UK holiday arithmetic's biggest change in a decade applies to leave years beginning on or after 1 April 2024. It governs casual, term-time, zero hours and seasonal staff.

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A worker is an irregular hours worker where the paid hours in each pay period are, under the contract, wholly or mostly variable. A part-year worker is one required to work only part of the year with unpaid gaps of at least a week.

Regular hours only. Half days are allowed: a four and a half day week is 4.5.

Irregular hours and part-year workers only. Leave accrues on hours already worked, so this figure grows through the year.

Used only to express accrued hours as days, so the two modes can be read on the same scale.

Bank holidays do not have to be given as paid leave. An employer may include them in the statutory entitlement, or give them on top. Enter 0 if they are on top.

Statutory leave still to book

18

Days. A negative figure means more leave has been taken and booked than the statutory minimum provides, which is lawful only if the contract is more generous than the floor.

Statutory leave for the leave year28
Of that, filled by bank holidays your employer counts8
Days left for the worker to choose20
Most that could normally be carried over, with the employer's agreement8

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  • The statutory floor is 5.6 weeks' paid holiday a year. gov.uk states that "almost all people classed as workers are legally entitled to 5.6 weeks' paid holiday a year". It adds that "most workers who work a 5-day week must receive at least 28 days' paid annual leave a year" (gov.uk).
  • The 28 day ceiling is applied to the regular hours figure. gov.uk states that "statutory paid holiday entitlement is limited to 28 days". So a six or seven day week does not produce more than 28 days of statutory leave (gov.uk).
  • Part-time entitlement is days a week multiplied by 5.6, the calculation gov.uk and Acas both work. A three day week gives "at least 16.8 days' leave a year (3 x 5.6)" (Acas).
  • Irregular hours and part-year workers accrue 12.07% of actual hours worked in a pay period, for leave years beginning on or after 1 April 2024. That percentage is 5.6 weeks divided by the 46.4 working weeks of a year (gov.uk).
  • Bank holidays are treated as a setting, not a fact, because they are one. gov.uk: "bank or public holidays do not have to be given as paid leave". And "an employer can choose to include bank holidays as part of a worker's statutory annual leave" (gov.uk).
  • The carry-over figure uses the general rule that "workers can normally carry over a maximum of 8 days into the next leave year, with the agreement of their employer". Statutory family leave is treated differently and is not modelled here (gov.uk).
  • This tracks the statutory minimum for a full leave year. It does not model contractual leave above the floor, service-related uplifts, leave in the first year of a job under an employer's accrual scheme, or a leave year part-completed. Where the contract is more generous, the contract governs and this figure is the legal floor beneath it.
  • Converting accrued hours to days uses the normal day length you enter. That conversion is a presentation choice, not a statutory rule: the entitlement of an irregular hours worker is measured in hours.

Who the rule catches

gov.uk defines an irregular hours worker in relation to a leave year as one where "the number of paid hours that they will work in each pay period during the term of their contract in that year is, under the terms of their contract, wholly or mostly variable".

A part-year worker is one who "under the terms of their contract, they are required to work only part of that year and there are periods within that year (during the term of the contract) of at least a week which they are not required to work and for which they are not paid".

Two things in those definitions do the work, and both are easy to miss. The test is applied per leave year, not once at hiring. And it turns on the terms of the contract, not on what actually happened. Somebody whose contract fixes their hours does not become an irregular hours worker because a quiet quarter cut their shifts.

The calculation

The rule replaced a calculation that had been wrong in a Supreme Court's opinion. For these workers it governs, and the multiplication above does not.

Accrual is 12.07% of actual hours worked in a pay period. gov.uk gives the reason for the number rather than leaving it a constant. 12.07% "is the proportion of statutory annual leave in relation to the working weeks of each year": 5.6 weeks over 46.4 weeks.

The consequence worth internalising is that entitlement here is measured in hours, not days. A worker who did 40 hours in a pay period has accrued 4.83 hours of leave in that period. Converting that to days needs a day length, and the day length is a presentational choice rather than a statutory one.

12.07% holiday pay: rolled-up pay

For the same group, holiday pay may be rolled up. gov.uk describes the method as "12.07% of a worker's total pay", the same proportion applied to money instead of hours.

Rolled-up pay is an option for these workers, not a default for everyone. Applying it to a regular hours worker does not become lawful because it is administratively easier.

What still applies

The 5.6 weeks ceiling has not moved, and neither has the general position that bank holidays are not a separate statutory entitlement.

Accrual during sickness and statutory leave is handled separately. It uses an average of hours worked over a 52 week relevant period, not the hours actually worked in the absent period. If your workforce includes irregular hours staff who take long sickness absences, read that calculation in full before you rely on a spreadsheet.

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Tell us roughly how many people you are tracking and how their hours are arranged. Up to three payroll and HR service providers will contact you directly.

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  • Your details go to at most three suppliers
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Questions, answered directly

How is irregular hours holiday pay worked out?

For leave years beginning on or after 1 April 2024, irregular hours and part-year workers accrue 12.07% of the hours actually worked each pay period. gov.uk: 12.07% "is the proportion of statutory annual leave in relation to the working weeks of each year", 5.6 weeks over 46.4 weeks. 40 hours worked in a pay period accrues 4.83 hours of leave.

What is 12.07% holiday pay?

It is rolled-up holiday pay: holiday pay is added to each payslip instead of paid when leave is taken. gov.uk describes the method as "12.07% of a worker's total pay". It is only an option for irregular hours and part-year workers. Applying it to a regular hours worker does not become lawful because it is easier to administer.

Sources

This site's own datasets, every figure quoted from its source and dated:

  • The UK Leave Software Price Index carries 14 published figures read from 13 sources' own pages; the 13 published figures given without a breakdown run from 0.60 to 8 GBP, read 11 November 2026.
  • The UK Statutory Leave Rules carries 7 published figures read from 6 sources' own pages, from 4 to 104 week, read 7 November 2026.
  1. gov.uk, holiday entitlement
  2. gov.uk, calculate holiday entitlement
  3. gov.uk, holiday pay and entitlement reforms from 1 January 2024
  4. Acas, checking holiday entitlement
  5. gov.uk, written statement of employment particulars

Check a balance against the legal floor

Two facts about the working pattern, two about what has been taken, and the statutory position is settled.

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