Holiday pay calculator (12.07% and day rate time off)

Who gets holiday pay, and who doesn't

GOV.UK says almost all people classed as workers are legally entitled to 5.6 weeks' paid holiday a year, including agency workers and workers with irregular hours. Its guidance on the 2024 reforms says full-year workers, except those who are genuinely self-employed, have this right. So if you work as a self-employed subcontractor and invoice a contractor, you don't get statutory holiday pay, and the sensible thing is to build time off into your day rate. If you work through an agency or umbrella company on PAYE, you are probably a worker and do. This page has a calculator for each case.

Calculator 1: the day rate that covers your time off (self-employed)

If nobody pays you for days off, every day you don't work is a day you don't earn. Enter the yearly income you want before tax and the days you expect to be off. The calculator shows how many days you will bill and the day rate needed.

Calculator 2: holiday pay for irregular hours (agency or PAYE workers)

For irregular-hours and part-year workers whose leave year began on or after 1 April 2024, GOV.UK says holiday builds up at 12.07% of the hours worked, and an employer may pay holiday as rolled-up holiday pay: 12.07% on top of pay, paid with each pay and shown separately on the payslip. Enter your hours and pay for a pay period.

How the rules work

• 5.6 weeks. Most workers on a 5-day week get at least 28 days. Part-time workers on regular hours get 5.6 times their working week: 3 days a week is 16.8 days. Statutory leave is capped at 28 days, so a 6-day week still gets 28.
• Bank holidays. GOV.UK says bank holidays don't have to be paid leave. An employer can count them as part of the 5.6 weeks.
• Where 12.07% comes from. 5.6 weeks of leave in a 52-week year leaves 46.4 working weeks, and 5.6 ÷ 46.4 = 12.07%. Accrual is rounded to the nearest hour, and 30 minutes or more rounds up. 68 hours gives 8.2076, so 8 hours.
• Rolled-up holiday pay. GOV.UK's method divides total pay for the period by 100, rounded to the nearest penny, multiplies by 12.07, and rounds to the nearest penny. It can only be used for irregular-hours and part-year workers, not those with regular hours.
• Records. From 6 April 2026, employers must keep detailed records of annual leave and holiday pay for at least 6 years.

Worked examples

1. A subbie planning for time off. You want £46,000 a year before tax. In a 5-day week there are 260 possible days. You take 25 days' holiday, there are 8 bank holidays and you allow 5 sick or gap days. That leaves 222 billable days. The day rate needed is £46,000 ÷ 222 = £207.21. If you had priced it as if you worked all 260 days you'd have charged £176.92 and ended up about £6,700 short. At £200 a day, 222 days gives £44,400.

2. Agency worker, one week. 38 hours at £14.00 gives £532.00. Divide by 100 to get £5.32, multiply by 12.07 to get £64.2124, so rolled-up holiday pay is £64.21. Holiday accrued is 38 × 12.07% = 4.59 hours, rounded to 5 hours.

3. GOV.UK's own examples. 35 hours at £10.42 gives £364.70 and rolled-up pay of £44.06. 20 hours at £11 and 20 hours at £12 gives £460, so £55.52. These are the figures the calculator reproduces.

What if you are a self-employed contractor on a day rate?

You are paid for the days you work, and nothing for days off, so your rate has to carry it. Work out your target, count the days you realistically won't bill, and divide. Don't forget the days between contracts. If a client offers a rate that seems fine but only works at 260 days a year, it is lower than it looks. When you raise your rate, our rate increase letter helps, and the day rate to hourly rate guide shows the hourly equivalent. Your yearly figure before tax feeds into the self-employed tax calculator. If you are unsure whether you're a worker or genuinely self-employed, our guide to umbrella vs self-employed invoicing explains how it shows up on paperwork.