Holiday Entitlement and Calculation

• The minimum (legal) entitlement for paid holidays is 28 days per year.
• Holiday allowance is accrued for each week an employee works no matter what hours they work in that week.
• The rate of holiday pay is based on earnings over a 52 weeks period (less if not worked 52 weeks).

How standard holiday entitlement is calculated:

• Holiday days / Working Weeks = Rate of Accrual
• 28 Day Entitlement example:
  • 28 days holiday (statutory minimum) equates to 5.6 weeks holiday (28 days / 5 days per week)
  • 52 weeks a year 5.6 = 46.4 working weeks 
  • To calculate the rate of accrual per week you divide the Days entitled by the working weeks
  • 28 / 46.40 = 0.603 days per week

How holiday entitlement is calculated under the Agency Worker Regulations (AWR) :

• The rate at which holiday entitlement accrues will vary depending on the number of holiday days you are entitled to.
• Using 35 days as an example:
  • 35 days holiday equates to 7 weeks holiday (35 days / 5 days per week)
  • 52 weeks a year 7 = 45 working weeks 
  • To calculate the rate of accrual per week you divide the Days entitled by the working weeks
  • 35 / 45 = 0.777 days per week

Holiday Accrual %

To calculate the holiday Accrual %:

• Convert the number of days to weeks, e.g.:
  • 28 days holiday = 5.6 Weeks
  • 35 days holiday = 7.0 Weeks
• Divide the number of Weeks by the remaining number Working Weeks and multiply by 100, e.g.:
  • 5.6 / (52-5.6) x 100 = 12.07%
  • 7.0 / (52-7.0) x 100 = 15.56%

Holiday Pay Rate 

• The rate at which the Holidays are paid at will be determined on the previous 52 weeks of earnings, an average is calculated for a days pay. 
  • Total earnings in last 52 weeks = £23,000
  •  £23,000 / 52 weeks = £442.30
  • 1 week = £442.30 / 5 = £88.46

Important: if you wish to opt out of the automatic bank holiday payments please contact payroll@kingstalentbank.com