A Guide to Holiday Entitlement in the UK (2026 Update)
Understanding holiday entitlement is a key responsibility for UK employers. Getting it wrong can lead to underpayments, disputes, and compliance issues — especially where staff work part-time, irregular hours, or join or leave partway through the year.
This guide explains what holiday entitlement is, the current legal minimum in the UK, how entitlement is calculated for different types of workers, and what employers need to consider in 2026.
What is holiday entitlement?
Holiday entitlement (also known as annual leave) is the amount of paid time off that workers are legally entitled to take each year. It exists to ensure employees can rest and recover, supporting wellbeing, health, and long-term productivity.
In the UK, most workers — including part-time and some casual workers — are entitled to paid annual leave under employment law.
What is the statutory holiday entitlement in the UK?
As of 2026, the statutory minimum holiday entitlement in the UK remains:
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5.6 weeks of paid holiday per year
For someone working five days a week, this equals:
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28 days per year
This total can include bank holidays, depending on the employer’s policy. Employers may choose to offer more than the statutory minimum, but they cannot offer less.
How holiday entitlement is calculated
Holiday entitlement depends on how many days or hours an individual works. Below are the most common scenarios employers encounter.
Full-time employees
Employees who work five days per week are entitled to:
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28 days’ paid holiday per year (5 days × 5.6 weeks)
This is the legal minimum. Any additional entitlement offered is contractual rather than statutory.
Part-time employees
Part-time workers are entitled to the same 5.6 weeks, but calculated on a pro-rata basis.
Example:
An employee working 3 days per week would be entitled to:
3 × 5.6 = 16.8 days’ holiday per year
Part-time staff must not be treated less favourably than full-time employees when holiday is calculated proportionally.
Employees with irregular hours or part-year workers (important 2026 update)
Following UK legislative changes introduced in 2024, employers can now calculate holiday entitlement for irregular-hours and part-year workers using an accrual method.
Under current rules:
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Holiday entitlement can be accrued at 12.07% of hours worked
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This applies where workers do not have a regular working pattern across the year
Holiday pay can also be calculated using rolled-up holiday pay where permitted, provided it is clearly itemised and paid correctly.
This change has simplified holiday calculations for casual, seasonal, and variable-hours workers — but accuracy is still essential.
New starters
Employees who start partway through the holiday year are entitled to holiday on a pro-rata basis.
To calculate entitlement:
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Identify how many full months remain in the holiday year
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Divide by 12
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Multiply by the full annual entitlement
Example:
A full-time employee starts in September, with a January–December holiday year:
4 ÷ 12 × 28 = 9.33 days’ holiday
Employers should clearly state their holiday year in employment contracts or staff handbooks.
Leavers
When an employee leaves, they are entitled to be paid for any accrued but untaken holiday up to their final working day.
To calculate:
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Work out how many months they’ve worked in the holiday year
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Pro-rate their annual entitlement
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Subtract any holiday already taken
Example:
Employee leaves at the end of May:
5 ÷ 12 × 28 = 11.66 days
If 5 days were already taken → 6.66 days payable
If an employee has taken more holiday than accrued, employers may deduct the excess from final pay only if the contract allows this.
Common holiday entitlement questions
When does holiday entitlement reset?
Holiday entitlement resets at the start of the employer’s chosen holiday year. This may be:
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The calendar year (1 January – 31 December), or
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The financial year (1 April – 31 March)
The holiday year must be clearly communicated to employees.
What is holiday accrual?
Holiday accrual means entitlement builds up gradually over time.
For example, an employee entitled to 28 days per year accrues approximately:
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2.33 days per month
This method is commonly used for new starters and leavers.
Can employers refuse holiday requests?
Employers can refuse holiday requests for specific dates, provided they:
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Give notice equal to the length of leave requested, and
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Still allow employees to take their full statutory entitlement during the year
Holiday cannot be unreasonably withheld altogether.
Can employees carry holiday forward?
Carry-over depends on the employer’s policy, but statutory rules apply in certain cases.
Employees must be allowed to carry over leave where they could not take it due to:
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Maternity or adoption leave (up to 5.6 weeks)
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Long-term sickness (up to 4 weeks)
In other cases, carry-over is only permitted if the employment contract allows it.
Getting holiday entitlement right
Holiday entitlement is closely linked to payroll accuracy. Errors can lead to underpayment, overpayment, or non-compliance — particularly where staff have variable hours or join and leave mid-year.
Employers should regularly review:
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Holiday calculations
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Payroll and HR records
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Contract wording and policies
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Compliance with current legislation
Need help managing holiday entitlement?
Accurately calculating and tracking holiday entitlement is a key part of compliant payroll processing. If you’d like support reviewing your payroll setup or ensuring holiday pay is handled correctly, MMSA Accountants can help.
