Holiday Pay: Your Right to Paid Annual Leave
All workers in the UK have a statutory right to paid annual leave. But holiday pay is one of the most commonly underpaid entitlements, especially for part-time workers, shift workers, and those on irregular hours. This guide explains what you're entitled to, how holiday pay should be calculated, and what to do if you've been underpaid.
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
How much annual leave are you entitled to?
The statutory minimum is 5.6 weeks of paid holiday per year. For a full-time worker doing a 5-day week, that's 28 days. For part-time workers, it's proportional to the days or hours worked.
- ✓5.6 weeks = 28 days for a standard 5-day week worker
- ✓Part-time workers get pro-rata entitlement (e.g. 3 days/week = 16.8 days)
- ✓Bank holidays can be included in the 28-day entitlement, check your contract
- ✓Your employer may offer more than the statutory minimum, check your contract
- ✓Agency workers are entitled to the same annual leave as direct employees after 12 weeks
How holiday pay should be calculated
Holiday pay must reflect your normal remuneration, not just basic pay. This was clarified in several important Employment Tribunal and Employment Appeal Tribunal cases.
- ✓Regular overtime (even voluntary) must be included in holiday pay calculations
- ✓Regular commission must be included
- ✓Regular bonuses paid as part of normal remuneration must be included
- ✓Shift allowances and unsocial hours payments should be included
- ✓The calculation is based on your average pay over the previous 52 weeks (or previous weeks worked if under 52 weeks)
Carrying over annual leave
The rules on carrying over unused annual leave changed from 1 January 2024:
- ✓The 4-week EU pot can be carried over if you were unable to take it due to sickness
- ✓The additional 1.6 weeks cannot normally be carried over (unless your contract says otherwise)
- ✓If your employer prevented you from taking leave, or failed to tell you you'd lose it, you may be able to carry it over
- ✓Leave accrued during sickness absence must be allowed to be taken or paid on termination
- ✓Irregular hours and part-year workers can now carry leave over between leave years
Holiday pay when you leave a job
When your employment ends, you're entitled to be paid for any accrued but untaken holiday. This is called payment in lieu of notice (holiday) or a holiday pay element in your final pay.
- ✓Holiday accrues from day one of employment
- ✓On leaving, you're entitled to pay for all accrued but untaken holiday
- ✓Holiday is calculated pro-rata to the point you leave in the holiday year
- ✓Your employer cannot withhold holiday pay as a disciplinary measure
- ✓If you're owed holiday pay on termination and don't receive it, this is an unlawful deduction from wages
If you're not getting your holiday pay entitlement
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
How much holiday am I entitled to?
All workers (including part-time and agency workers) are entitled to at least 5.6 weeks of paid holiday per year. For a full-time worker this is 28 days. Part-time workers get the same entitlement calculated pro-rata. Your employer can include bank holidays within this 5.6 weeks.
Should overtime be included in holiday pay?
Yes, following the Bear Scotland ruling. Regular overtime, commission, and other payments that are part of your normal remuneration must be included in holiday pay calculations. If your employer has been calculating holiday pay based only on basic pay while you regularly work overtime, you may be entitled to back pay.
Can I carry over unused holiday?
You can normally only carry over 1.6 weeks of your 5.6-week entitlement (the additional statutory weeks). However, if you were unable to take holiday due to sickness, maternity leave, or because your employer refused your request, you may be entitled to carry over more. The rules changed in 2023 to allow carry-over for workers who could not take leave due to Covid-related reasons.
How far back can I claim underpaid holiday pay?
Since July 2015, claims for a series of unlawful deductions are broken if there is a gap of 3 months or more between underpayments. In practice, claims are often limited to 2 years of backdated holiday pay under the Deduction from Wages (Limitation) Regulations 2014, though this remains an area of ongoing litigation.
What happens to my holiday pay when I leave a job?
When you leave, you are entitled to payment in lieu for any accrued but untaken holiday for the current leave year. Your employer cannot require you to forfeit accrued holiday on leaving. If you are dismissed or resign with notice, you should also receive pay for any holiday that falls within your notice period.
Related guides
Found this useful? Link to it
If you run a site, write an article, or help others with their rights, please link to this guide, it helps more people find free, reliable guidance.