Holiday Entitlement for Minimum Wage Workers
All workers in the UK — including those on minimum wage, part-time, or zero hours contracts — are legally entitled to 5.6 weeks of paid holiday per year. This is the statutory minimum set by the Working Time Regulations 1998.
For a full-time worker on a standard 5-day week, 5.6 weeks equals 28 days (including bank holidays). Your employer may choose to include the 8 bank holidays within the 28 days or offer them on top — check your contract.
Part-time workers receive the same 5.6 weeks, calculated proportionally. A worker doing 3 days a week is entitled to 3 × 5.6 = 16.8 days per year. Holiday entitlement is based on your working pattern, not your pay rate.
How Holiday Pay is Calculated at Minimum Wage
Holiday pay must be paid at your normal rate of pay — the same rate you receive when working. For workers with fixed hours, this is straightforward. For those with irregular hours, the calculation uses your average pay over the previous 52 weeks.
Hours per week40 hrs
Weekly pay£488.40
Annual leave28 days
Holiday pay per week£488.40
Annual holiday pay£2,735.04
Hours per week25 hrs
Weekly pay£305.25
Annual leave17.5 days
Holiday pay per week£305.25
Annual holiday pay£1,709.40
Hours per weekVaries
Accrual rate12.07%
Entitlement5.6 weeks
Per £100 earned£12.07
Annual holiday payBased on hours
Note on 12.07%: For zero hours and irregular workers, 5.6 weeks represents 12.07% of a 46.4-week working year (52 − 5.6 = 46.4; 5.6 ÷ 46.4 = 12.07%). For every hour worked, 12.07% of pay accrues as holiday pay entitlement.
Zero Hours Contract Holiday Pay
If you are on a zero hours or casual contract, calculating holiday pay is slightly different because your hours vary week to week.
The 12.07% method: Many employers calculate holiday pay for zero hours workers as 12.07% of all pay earned. For every £100 you earn, £12.07 accrues as holiday pay. While HMRC has moved away from recommending this for all workers following the Harpur Trust ruling, it remains a widely used method for genuinely irregular workers.
The 52-week average method: Since April 2020, the reference period for calculating holiday pay has been 52 weeks (previously 12 weeks). Your average weekly pay over the last 52 working weeks (excluding any weeks where you received no pay) is used to calculate each week of holiday pay.
- Keep records of your hours and pay — you may need to calculate your own entitlement
- Your employer must include regularly worked overtime in the 52-week average
- Bank holidays: zero hours workers still have a right to paid bank holidays proportional to their working pattern
Frequently Asked Questions
How many days holiday am I entitled to at minimum wage?
All workers in the UK are entitled to 5.6 weeks of paid holiday per year, regardless of whether they are paid at minimum wage or above. For a full-time worker on a standard 5-day week, that equals 28 days (including bank holidays). Part-time workers receive the same 5.6 weeks, which equates to fewer days proportional to their working pattern — for example, someone working 3 days a week is entitled to 16.8 days per year.
Is holiday pay included in my minimum wage?
No. Holiday pay is separate from, and in addition to, your minimum wage pay for hours actually worked. Employers cannot include an element of holiday pay within your hourly rate (known as "rolled-up holiday pay") unless very specific circumstances apply. You must receive your normal rate of pay when you take annual leave — it cannot be bundled into your regular hourly rate without your clear agreement and it being clearly identified on payslips.
How is holiday pay calculated for zero hours workers?
For zero hours and irregular workers, holiday pay is based on your average pay over the previous 52 working weeks (ignoring any weeks with no earnings). The statutory entitlement remains 5.6 weeks. Many employers use the 12.07% method as a shortcut: for every hour worked, 12.07% of that hour's earnings accrues as holiday pay. Whichever method is used, the result must be at least the National Minimum Wage for the hours equivalent to the leave taken.
Can my employer give me money instead of holiday (pay in lieu)?
Only in limited circumstances. While you are in employment, your employer cannot pay you in lieu of statutory holiday entitlement — you must be allowed to take the leave. Refusing to grant leave or trying to buy out statutory holiday is unlawful. However, when employment ends (resignation, redundancy, dismissal), any accrued but untaken statutory holiday must be paid out as payment in lieu of holiday (PILOH) in your final pay.
What happens to my holiday if I leave a job?
When you leave a job, your employer must pay you for any statutory annual leave you have accrued in the holiday year but not yet taken. This is calculated based on when in the holiday year your employment ends and the proportion of entitlement earned. Conversely, if you have taken more leave than you have accrued at the point of leaving, your employer may deduct the overpayment from your final wage — but only if your contract explicitly permits this.
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