How much holiday am I entitled to?

Minimum 5.6 weeks (28 days) including bank holidays for full-time. Part-time is pro-rata.

What is rolled-up holiday pay?

Holiday pay added to each payment (12.07% uplift) instead of paid when holiday is taken.

Does overtime count for holiday pay?

Regular overtime should be included. Genuinely occasional overtime may be excluded.

Can I carry over unused holiday?

Usually only with employer agreement. Statutory 4 weeks can be carried if you could not take it.

Is holiday pay taxed?

Yes, holiday pay is taxable income like normal salary through PAYE.

General2026/27

What is Holiday Pay? UK Definition 2026/27

Written by Waqas Sagar ACA, FCCA, FMAAT

•

Verified by ICAEW, ACCA & AAT

•Updated April 2026

Quick Answer

Pay you receive while on annual leave, calculated on normal earnings.

Definition of Holiday Pay

Holiday pay is the pay you receive during annual leave. UK workers are entitled to 5.6 weeks paid holiday per year (28 days for full-time). Holiday pay should reflect normal earnings including regular overtime, commission, and bonuses. For irregular hours workers, holiday pay is often calculated as 12.07% of earnings.

Holiday Pay — Key Facts for 2026/27

Statutory minimum	5.6 weeks (28 days)
Rolled-up calculation	12.07% of earnings
Includes	Regular overtime, commission
Part-time	Pro-rata entitlement

How Holiday Pay Works — Example

Holiday pay calculation

1Annual salary: £30,000
2Holiday entitlement: 28 days
3Daily rate: £30,000 / 260 = £115.38
4Holiday pay for 28 days: £3,230.77
5Already included in salary

How Holiday Pay Affects Your Tax

Holiday pay should reflect what you would normally earn, not just basic pay. Employers who exclude regular overtime or commission from holiday pay may owe back pay. Rolled-up holiday pay is now legal if clearly shown.

Official HMRC Guidance on Holiday Pay

For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.

GOV.UK: Holiday entitlement

Frequently Asked Questions about Holiday Pay

Related Tax Terms

PAYE

Pay As You Earn - the system for deducting income tax and NI from wages.

Accuracy Note

This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.