Since April 2024 there has been a set method for holiday on zero-hours and other variable contracts, replacing years of guesswork. This post covers who it applies to, how the 12.07% accrual works with GOV.UK's own examples, the two ways to pay the leave, and what the payslip must show if you use rolled-up holiday pay.
Who counts as an irregular-hours or part-year worker?
The rules apply to two groups defined in the Working Time Regulations. An irregular-hours worker is one whose paid hours in each pay period are, under their contract, wholly or mostly variable. A part-year worker is one who, under their contract, works only part of the year and has periods of at least a week in it when they're not required to work and aren't paid.
A zero-hours or "casual" contract is the typical irregular-hours case. GOV.UK's examples draw the line clearly: a hospitality worker whose hours change every week is irregular-hours; someone on a fixed rota of 15 hours one week and 20 the next, with no overtime, is not, because the hours are fixed even though they rotate. A seasonal farm worker paid only in spring and summer is a part-year worker.
Regular-hours staff, full-time or part-time, keep the existing rules: 5.6 weeks a year, pro-rated for part-timers, and no rolled-up holiday pay.
How is holiday worked out for zero-hours workers?
Holiday builds up at 12.07% of the hours worked in each pay period. The figure comes from 5.6 weeks of leave against 46.4 working weeks a year (52 minus 5.6): 12.07% of 46.4 is 5.6. Statutory entitlement is capped at 5.6 weeks, and at 28 days for anyone working more than 5 days a week.
- Take the hours worked in the pay period.
- Multiply by 12.07 and divide by 100.
- Round to the nearest hour: half an hour or more rounds up, less than half rounds down.
- Add the result to the worker's holiday balance. They can take it from the next pay period.
| Pay period | Hours worked | 12.07% of hours | Holiday accrued |
|---|---|---|---|
| One week | 30 | 3.621 | 4 hours |
| One month (June) | 68 | 8.2076 | 8 hours |
For someone paid weekly who works 4 hours a week or less, GOV.UK says it may be appropriate to round up to the next half hour or hour so the worker accrues something. Leave years that started on or before 31 March 2024 used the older rules until they renewed.
Two ways to pay holiday to irregular-hours staff
| Pay when leave is taken | Rolled-up holiday pay | |
|---|---|---|
| How much | A week's pay: the average pay over the previous 52 weeks in which the worker was paid | 12.07% of total pay in each pay period |
| When it's paid | When the worker takes the leave | Every payday, with the pay for work done |
| Looking back | Skip weeks with no pay, up to 104 weeks back | Not needed |
| On the payslip | A holiday pay line in the period the leave is taken | A separate holiday pay item on every payslip |
| Rate | Normal rate of pay | Normal rate of pay |
Either way, all the leave is paid at the worker's normal rate, which includes commission, regular overtime and payments for length of service or professional qualifications, but not usually bonuses. Regular-hours workers are different: 4 weeks at the normal rate and 1.6 weeks at the basic rate, and rolled-up pay isn't allowed for them.
Is rolled-up holiday pay legal?
Yes, for irregular-hours and part-year workers, for leave years beginning on or after 1 April 2024. It isn't allowed for regular-hours workers. GOV.UK sets out how to do it properly:
- Check the worker's contract, because switching to rolled-up pay may be a change to it.
- Tell the worker you're going to use rolled-up holiday pay.
- Each pay period, work out 12.07% of the worker's total pay for the period.
- Show it as a separate item on the payslip.
- Pay it at the same time as the pay for the work done in that period, on top of pay at or above the National Minimum Wage.
GOV.UK's worked example: a worker on £10.42 an hour works 35 hours in a week, earning £364.70. Divide by 100 and round to the penny (£3.65), multiply by 12.07 (£44.0555) and round again: £44.06 of rolled-up holiday pay on that week's payslip. The example's hourly rate predates the current minimum wage, but the method is the same at any rate.
Rolled-up pay doesn't remove the leave. The worker still takes the holiday they've accrued; it was simply paid in advance. If you didn't pay rolled-up holiday pay a worker was entitled to, GOV.UK says they can carry over their whole entitlement.
Carry-over, sickness and records
- Sickness: holiday keeps building up while a worker is off sick. An irregular-hours or part-year worker who couldn't take leave because of sickness can carry over up to 28 days, to be used within 18 months of the end of the leave year it built up in.
- Family leave: leave missed because of maternity or other family-related leave can be carried into the next leave year.
- No chance to take it: a worker who wasn't given a reasonable opportunity to take leave, or wasn't told they'd lose it, can carry over all of it.
- Records: from 6 April 2026, employers must keep records of annual leave and holiday pay for at least 6 years, for example the days taken and the holiday pay paid. You choose how, but you may be fined if you can't show them.
Where PayDocs fits
PayDocs makes the payslip from your payroll figures. The generator has a one-tap "Holiday pay" earnings line: rename it "Rolled-up holiday pay" and enter the 12.07% figure, and it appears as the separate item GOV.UK asks for, next to the hours and pay for the period. PayDocs works out PAYE income tax, National Insurance and supported deductions for 2026/27 pay dates. You preview free and pay per payslip.
This is general information about the rules for employers in the UK, not tax or legal advice.
Questions
Do zero-hours workers get holiday pay?
Yes. Almost all workers, including zero-hours and other irregular-hours workers, are entitled to up to 5.6 weeks' paid holiday a year, built up at 12.07% of the hours they work.
How is holiday pay calculated for zero-hours workers?
Either pay a week's average pay from the previous 52 paid weeks when they take leave, or add rolled-up holiday pay of 12.07% of their total pay in every pay period.
Is rolled-up holiday pay legal?
Yes, for irregular-hours and part-year workers, for leave years beginning on or after 1 April 2024. It isn't allowed for workers with regular hours, full-time or part-time.
Does rolled-up holiday pay have to be shown on the payslip?
Yes. GOV.UK says employers should tell workers they're using rolled-up holiday pay and show it as a separate item on each payslip, paid at the same time as the pay for the work done.
How many hours of holiday does a zero-hours worker get for 30 hours' work?
Four hours. 12.07% of 30 hours is 3.621 hours, and GOV.UK says to round to the nearest hour, rounding up from half an hour.
Sources
- GOV.UK: Holiday entitlement, calculate leave entitlement
- GOV.UK: Holiday entitlement, holiday pay
- GOV.UK: Holiday pay and entitlement reforms from 1 January 2024
- GOV.UK: Holiday entitlement
Sources checked 7 October 2026. This article explains how pay documents work; it is not tax or legal advice.
