Holiday pay for irregular hours: the 12.07% rule explained
5 minute read · 2026-10-08
If you work irregular hours or only part of the year, your holiday in Great Britain builds up at 12.07% of the hours you work in each pay period, for leave years starting on or after 1 April 2024. Your employer can either let you take that as paid time off, or pay it as "rolled up holiday pay": an extra 12.07% on top of your pay each payday, shown as a separate line on your payslip.
Where 12.07% comes from
Everyone gets 5.6 weeks of paid holiday a year. A worker who takes 5.6 weeks off works the other 46.4 weeks. 5.6 divided by 46.4 is 0.1207, or 12.07%. So for every hour you work you earn just over seven minutes of paid holiday.
Who counts as irregular hours or part year
- Irregular hours: the number of paid hours in each pay period is wholly or mostly variable under your contract. Zero hours, most casual and many agency workers.
- Part year: you work only part of the year and are not paid for at least five weeks of it, for example term time only contracts where pay stops in the holidays.
If you have regular hours (even part time), the 12.07% method does not apply: you get 5.6 times your usual working week, for example 28 days for someone working five days a week.
A worked example
Say an agency warehouse operative on £12.71 an hour works 30 hours one week.
- Accrual method: 30 x 12.07% = 3.62 hours of holiday earned that week, to be taken later as paid leave.
- Rolled up method: 30 x £12.71 = £381.30 basic pay, plus 12.07% = £46.02 holiday pay, paid the same week as a separate line.
Over a year the two come to the same amount. The difference is that with rolled up pay you are not paid when you actually take time off, so it is worth putting aside.
What rate is holiday paid at?
Holiday pay is not always basic pay. For at least four of the 5.6 weeks, it must reflect your normal pay, including regular overtime, commission and certain allowances. Where your pay varies, holiday pay is based on your average weekly pay over the previous 52 paid weeks. For rolled up holiday pay the 12.07% is calculated on what you were paid in that period, which should include overtime and premiums you earned.
Agency workers
Agency workers are entitled to paid holiday from day one, on the same 12.07% basis if their hours are irregular. Your agency's key information document must explain how holiday is paid. See also our holiday paperwork for how we do it.
Northern Ireland
Northern Ireland has its own working time law, and the 2024 changes described here were made for Great Britain. If you work there, check the rules on nidirect.
Common mistakes to check for
- Holiday pay "included in the rate" with no separate line. That is not lawful rolled up holiday pay: it must be shown separately.
- 12.07% worked out on basic hours only when you also worked regular overtime.
- A worker with regular hours put on the 12.07% method, which can short them.
- Accrued holiday not paid when you leave. Untaken statutory holiday must be paid on leaving.
What to do next
Check your last few payslips for a holiday line or an accrual balance. If you cannot see either, ask in writing how your holiday is being paid. The official guidance is on GOV.UK: holiday entitlement, and the employer side is in holiday and sick pay basics.
This is general information, not legal advice. For your own situation, ACAS (0300 123 1100) is free.
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