workSMART from the TUC

What rate should my holiday pay be set at?

You are entitled to be paid at the rate of a week's pay in respect of each week of leave.

If you are a time worker the calculation of a week's pay is relatively straightforward. It is simply the remuneration for working the normal working hours in the week, including where necessary, commission or bonuses, if they are a fixed payment.

The calculation for piece workers is the average hourly rate multiplied by the normal working hours. This average hourly rate is calculated by taking the total remuneration, after excluding overtime premia, for the hours actually worked, excluding overtime hours, over the twelve week period prior to the calculation date and dividing it by the number of hours actually worked.

For workers with no normal working hours, such as casual workers, a week's pay equals the average weekly remuneration over a twelve-week period including all pay and hours worked.


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This information is taken from workSMART.org.uk, the help and advice portal for all people at work, from the TUC

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