Rolled-up holiday pay: the 2024 rule change explained
For leave years starting on or after 1 April 2024, rolled-up holiday pay became lawful for irregular hours and part-year workers in the UK. This guide explains who qualifies, how to calculate it, and what rights workers still hold.
Disclaimer: This calculator provides estimates only and does not constitute legal, financial, or employment advice. Calculations should be verified against current regulations. For complex situations or disputes, consult ACAS, an employment lawyer, or a qualified payroll professional.
Regulations: England, Wales & Scotland
Rolled-up holiday pay calculator
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What is rolled-up holiday pay?
Rolled-up holiday pay is a method of paying holiday entitlement as part of every payslip, rather than separately when a worker takes annual leave. A percentage of gross pay — representing the accrued holiday entitlement — is added to wages in each pay period.
In practice, instead of receiving a week's holiday pay when they take a week off, a worker on rolled-up holiday pay receives a small uplift on every payslip throughout the year. While administratively convenient, this arrangement was historically unlawful in the UK — until the law changed in April 2024.
Why was it previously unlawful?
The Working Time Regulations 1998, implementing the EU Working Time Directive, require that workers receive their statutory leave entitlement as actual paid time off. Established case law confirmed that rolled-up holiday pay contravenes this requirement.
Robinson-Steele v RD Retail Services [2006]: The European Court of Justice ruled that rolled-up holiday pay was unlawful. Paying holiday pay alongside normal wages — rather than when leave is actually taken — discourages workers from taking rest periods. Workers may not set aside the money, and may effectively work without proper breaks, harming their health and safety.
The government's own note to the 2023 Regulations says the same: rolled-up pay "had previously been ruled unlawful by the Court of Justice of the European Union" in Robinson-Steele, "which required holiday pay to be paid at the time leave was taken".
What changed in April 2024?
According to ACAS guidance and GOV.UK regulations, the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 came into force on 1 January 2024 and apply to leave years beginning on or after 1 April 2024, making rolled-up holiday pay lawful in England, Scotland and Wales — but only for two categories of worker:
- Irregular hours workers — workers whose paid hours vary wholly or mostly from one pay period to the next under the terms of their contract. This covers zero-hours contract workers, casual workers, and agency workers without fixed weekly hours.
- Part-year workers — workers employed under a contract that spans the full year, but who are only required to work for part of it (for example, term-time school staff or seasonal workers with year-round contracts).
These rules do not apply in Northern Ireland. Northern Ireland's Working Time Regulations have no 12.07% or rolled-up holiday pay rule. Irregular-hours and part-year workers there get 5.6 weeks' leave under regs 15 and 16 of the Working Time Regulations (Northern Ireland) 2016, paid at a week's pay averaged over 12 weeks under reg 20.
Not available if you work regular hours all year. ACAS states that rolled-up holiday pay applies to irregular hours workers and part-year workers only. If you work regular hours all year round, full-time or part-time, you are paid holiday pay when you take the leave. If you get the same pay for your normal hours every week, your holiday pay is that normal week's pay. A 52-week average is used only for pay that varies from week to week (12 weeks in Northern Ireland).
Harpur Trust v Brazel: the context
In Harpur Trust v Brazel [2022] UKSC 21, a music teacher worked only in term time. Her school gave her holiday pay for 12.07% of the hours she worked. The Supreme Court said that was wrong. The leave of a part-year worker on a permanent contract "is not required by EU law to be, and under domestic law is not, prorated to that of a full-time worker" (paragraph 52). She was due the full 5.6 weeks.
The government's explanatory memorandum to the 2023 Regulations puts the effect plainly: "part-year workers are entitled to a larger annual leave entitlement than part-time workers who work the same number of hours across the year" (paragraph 7.11).
The government consulted on this after the ruling. The 2023 Regulations then changed the rules for irregular hours and part-year workers, for leave years starting on or after 1 April 2024. Their leave now builds up at 12.07% of the hours they work in each pay period, up to 28 days a year (regulation 15B of the Working Time Regulations). The memorandum says this makes their leave "pro-rated to the hours they work" (paragraph 7.9). Rolled-up pay is a separate change in the same Regulations (regulation 16A). It answers Robinson-Steele, not Brazel: the government's note to the Regulations names Robinson-Steele as the ruling it changes.
How to calculate rolled-up holiday pay
The rate is derived from the statutory leave entitlement of 5.6 weeks out of a 52-week year:
5.6 ÷ (52 − 5.6) = 5.6 ÷ 46.4 = 12.07%
Employers multiply a worker's gross earnings in the pay period by 12.07% and pay that amount as rolled-up holiday pay, shown as a separate line on the payslip.
Worked example
- Worker earns £800 in a given week
- Rolled-up holiday pay: £800 × 12.07% = £96.56
- Total payslip: £800 + £96.56 = £896.56
If an employer provides enhanced contractual holiday beyond the statutory 5.6 weeks — for example, 30 days instead of 28 — the rolled-up rate would need to be higher to reflect the additional entitlement.
Payslip requirement: Rolled-up holiday pay must be itemised separately on every payslip. A single combined figure is not sufficient — workers must be able to see exactly how much holiday pay they have received.
Rolled-up vs 52-week average: which method should you use?
Employers have two lawful methods for calculating holiday pay for irregular hours workers. The right choice depends on your worker type and payroll preferences:
| Method | Best for | Calculation | When paid |
|---|---|---|---|
| Rolled-up (12.07%) | Irregular hours, part-year workers | 12.07% of each payslip | With wages |
| 52-week average | Irregular hours, part-year workers (the default if rolled-up pay is not used) | Average of last 52 paid weeks | When leave taken |
Key difference: With rolled-up pay, you receive holiday pay continuously throughout the year on every payslip. With the 52-week average, you receive it only when you actually take time off. The yearly totals are usually close but don't have to match exactly: rolled-up pay is 12.07% of what you earn in each pay period, while leave you take is paid at your average week's pay over your last 52 paid weeks. Pay rises, overtime and busy or quiet seasons can move the two apart. The 52-week average is the rule in England, Scotland and Wales; in Northern Ireland the average is taken over 12 weeks, and rolled-up pay is not an option.
Your rights as a worker
Receiving rolled-up holiday pay does not reduce your entitlement to actual rest. Your key rights remain:
- Right to time off: You still build up leave as you work: 12.07% of the hours you work in each pay period, up to 28 days in a leave year. That is up to 5.6 weeks, not a fixed 5.6 weeks, because it depends on the hours you work. Your employer cannot pay you instead of letting you take it, except when you leave the job.
- Your employer must let you take it: ACAS says an employer using rolled-up pay has a legal responsibility to "make sure workers can take the holiday they're entitled to" and to encourage them to take it.
- No pay when you take the time off: Rolled-up pay is your holiday pay, paid early. Once your employer has paid it, it does not have to pay you again for that leave. In ACAS's words, it "means a worker will not get any pay when they take holiday." Set the extra aside so you can afford your time off.
- Keep your payslips: Retain copies of all payslips to track the holiday pay you have accrued throughout the year. This protects you if a dispute arises.
Is rolled-up holiday pay compulsory for employers?
No. The 2023 Regulations make rolled-up holiday pay a lawful option for eligible workers — not a requirement. Employers can still calculate and pay holiday pay in the traditional way: working out average pay over a 52-week reference period and paying it when the worker actually takes leave.
Many employers of irregular hours workers choose the rolled-up method because it simplifies payroll administration and removes the need to track a shifting 52-week average, particularly when a worker's pay varies significantly week to week.
Calculate your irregular hours holiday pay
Use our free calculator to work out holiday entitlement for irregular hours and part-year workers.
Frequently asked questions
Is rolled-up holiday pay legal in the UK?
Yes, for irregular hours and part-year workers, for leave years starting on or after 1 April 2024, under the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023. It is not available for workers on regular hours all year round, who must still be paid holiday pay when they take their leave.
What is the 12.07% rate for rolled-up holiday pay?
12.07% represents the proportion of statutory annual leave (5.6 weeks) to the total working year (46.4 weeks). Employers add 12.07% of a worker's gross earnings in each pay period as holiday pay.
Do irregular hours workers still have the right to take time off?
Yes. Rolled-up pay changes when you are paid for holiday, not whether you get the time off. You still build up leave as you work: 12.07% of the hours you work in each pay period, up to 28 days in a leave year. You can take that leave. You will not be paid again when you take it, because the holiday pay came with your wages.
Who counts as an irregular hours worker?
An irregular hours worker is someone whose paid hours vary wholly or mostly in each pay period under their contract. This includes zero-hours contract workers, casual workers, and agency workers without fixed weekly hours.
Must rolled-up holiday pay be shown separately on payslips?
Yes. Employers must itemise rolled-up holiday pay separately on the payslip so workers can clearly see what holiday pay they have received.
Calculate your accrued holiday pay
For irregular hours workers, use our 12.07% calculator to determine your exact holiday entitlement.
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