Holiday Pay Help

How much holiday per year do I pay my staff?

Statutory holidays are a little complicated but hopefully this explanation will make it a bit easier:

Holidays entitlement runs from the 1st April till the 31st March each year. Your staff are entitled to 5.6 weeks’ annual leave (also known as statutory leave) each year whether they are full time or part time.

When taking holiday, staff should be paid the same that they would have been paid if they were otherwise working. So if a member of staff would work 20 hours a week, they should be paid 20 hours worth of holiday pay. If staff regularly work overtime, this should be included.

Calculating Based on Days Worked

The number of days of annual leave an employee is entitled to can be calculating by multiplying the number of days worked per week by 5.6.

If your employees work 2 days a week then you calculate the annual leave as: 2 x 5.6 = 11.2 days annual leave per full year. (You always round up so that is 11.5 days.) This figure includes the Bank Holidays whether they work them or not. If you work 6 days or more per week the statutory entitlement is capped at 28 days per year unless you have an alternative agreement. Here are some more examples:

4 Days x 5.6 = 22.4 (22.5 days rounded up)
5 Days x 5.6 = 28 days

Calculating Based on Hours Worked

If you prefer you can work it out in hours, this is useful if they work non set days of the week but so many hours a week. Hours are calculated x 5.6 so: 24 hours per week is: 24 x 5.6 =134.4 hours (round up is 134.5 hrs holiday per year). This includes the Bank Holiday entitlement so if they work a Bank Holiday then they do not get any more time off just extra pay if they are entitled to it.

How Do I Calculate Zero Hour’s Contracts or Casual Workers?

If your staff work irregular hours on a zero-hour contract, you work out accrued holiday entitlement by working out their average weekly hours and then multiplying by 5.6. Average weekly hours should be based on the past 12 months worked when possible.

How Do I Calculate Entitlement When They Haven’t Worked a Full Year?

This can be harder to calculate so you can either call Nycil for help on 01723 588002 or emailadmin@nycil.org.uk. Or use the HMRC Holiday entitlement calculator to help with this, it can be found here. This is the same for those of you who have staff that work nights, please call for help with regards to this.

Examples

Quick Guide Calculation
Full Time 5 days a week 5.6 weeks(28 days)
4 days a week 5.6 weeks (22.4 days)
3 days a week 5.6 weeks (16.8 days)
6 days a week 5.6 weeks (28 days capped)
2 days a week 5.6 weeks (11.5 days)
1 day a week 5.6 weeks (5.5 days)
Quick Guide Calculation
30hrs per week 168hrs per tax year
25hrs per week 140hrs per tax year
19hrs per week 106.5hrs per tax year (rounded up)
12hrs per week 67.5hrs per tax year (rounded up)
8hrs per week 45hrs per tax year (rounded up)
5hrs per week 28hrs per tax year