Holiday Accrual Calculator UK — Hours Worked Method

Stop calculating accrual manually — track it automatically

This calculator gives you the numbers. TimeTally tracks hours, approvals, and holiday accrual automatically — so every employee balance stays accurate without a spreadsheet. From £2/employee/month. Also works for zero-hours contract workers.

Hours logged automatically as employees work

Staff submit time tracking via the iOS app or web. Clock in/out is tracked automatically. Hours feed directly into holiday accrual calculations — no paper forms, no manual tallying.

Clock in/out

iOS & web

Auto accrual

Instant notifications

TimeTally timesheet entry showing clock in/out and hours worked

Timesheets approved in one tap

All pending time tracking lands in your dashboard. Approve or query with a single tap. Every decision is timestamped — full audit trail for every timesheet, and holiday balances update immediately on approval.

All pending timesheets in one place
Approve or query with one tap
Timestamped approval audit trail
Employee notified automatically

TimeTally iOS app showing employer timesheet approval

One tap

Approve instantly

Audit Trail

Every decision logged

Holiday balance updates as hours are approved

Holiday accrual is calculated directly from approved time tracking. Balances update in real time — employees can always see exactly how much holiday they have earned. No manual entry, no errors.

Real-time balances

Per-employee tracking

Clean audit trail

No manual entry

TimeTally showing holiday balance updating as hours are approved

Holiday pay data exported to payroll

Approved hours and holiday accrual data feed directly into your payroll export. Direct integration with Xero and QuickBooks — no manual data entry, no missed holiday pay.

Direct Xero & QuickBooks integration
CSV export for any payroll software
Holiday hours included automatically
Clean audit trail for every entry

TimeTally payroll export showing holiday pay data sent to Xero and QuickBooks

Xero & QuickBooks

Direct integration

CSV Export

Any payroll software

Meet TimeTally

Stop doing this manually
for every employee

TimeTally automatically tracks, approves, and accrues holiday for your entire team. Explore all features or see how it works.

Auto accrual

Holiday accrual calculated automatically from approved hours. Every employee's balance stays accurate in real time — no spreadsheets, no manual calculations.

One-tap approvals

Managers approve or reject time tracking from any device, with a full audit trail of every decision timestamped and stored automatically.

Payroll-ready exports

Approved hours and holiday data feed directly into Xero, QuickBooks, or CSV exports — so your payroll run is always accurate and on time.

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Loved by UK small businesses

Real reviews from TimeTally customers

“Setup was dead simple and the team just got on with it. Got everyone up and running in an afternoon with no help needed. Does everything we need for timesheets and holidays without the faff.”

S.M.

“Has completely changed how I handle timesheets. Used to dread it every week — now it takes me minutes. Really easy to get around and my staff picked it up straight away.”

J.T.

“Started using it just for rotas but quickly realised it does loads more. The timesheets and leave management are great, and it even handles TOIL and overtime which I wasn't expecting. Use it for everything now.”

R.K.

Holiday Accrual: Frequently Asked Questions

Everything you need to know about holiday accrual in the UK. For related topics, try our zero-hours holiday calculator or pro-rata holiday calculator.

How is holiday accrual calculated for zero-hours workers?

For zero-hours and variable-hours workers, holiday accrues at 12.07% of hours worked. This figure comes from dividing the statutory entitlement (5.6 weeks) by the number of working weeks in a year (52 − 5.6 = 46.4 weeks). So for every hour worked, a worker accrues approximately 7.24 minutes (12.07%) of paid holiday.

What is the 12.07% holiday accrual rate?

The 12.07% rate represents the UK statutory minimum holiday entitlement of 5.6 weeks expressed as a percentage of the 46.4 weeks a worker actually works (52 weeks minus 5.6 weeks holiday). It is the standard rate used for workers without fixed hours — including zero-hours contract workers, casual workers, and irregular-hours workers.

Can I use a different accrual rate?

Yes. 12.07% is the statutory minimum. If your contract provides a higher holiday entitlement — for example, 25 days plus bank holidays for a full-time worker — you should use the corresponding higher accrual rate. Simply divide your total contractual holiday weeks by the number of working weeks in a year and express it as a percentage.

How does holiday accrual work for part-time workers?

Part-time workers accrue holiday on a pro-rata basis proportional to their contracted hours. For workers with fixed hours, entitlement is calculated pro-rata against a full-time equivalent. For part-time workers with variable hours, the 12.07% hours-worked method applies in exactly the same way as for zero-hours workers.

When does holiday accrual start?

Holiday accrual starts from the first day of employment. There is no qualifying period for statutory holiday entitlement under the Working Time Regulations 1998. Workers are entitled to take leave during the first year of employment, and any accrued holiday not taken by the end of the leave year must be paid out (unless the employer allows carry-over).

What happens to accrued holiday when an employee leaves?

When employment ends, any accrued but untaken statutory holiday must be paid out as a lump sum — known as payment in lieu. The amount is calculated based on the worker's average weekly pay over the previous 52 weeks (the holiday pay reference period under the Employment Rights Act 1996). Employers cannot require workers to forfeit accrued holiday on termination.

How is holiday pay calculated for variable-hours workers?

Under the Employment Rights Act 1996, as amended by the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, holiday pay for irregular-hours and part-year workers is calculated using a 52-week average of actual pay earned. Weeks in which no pay was received are excluded and replaced by earlier weeks, going back up to 104 weeks. This ensures holiday pay reflects realistic average earnings.

Can holiday accrue during sick leave?

Yes. Statutory annual leave continues to accrue during periods of sick leave, including long-term sickness absence. If a worker is unable to take their holiday during the leave year because of illness, they have the right to carry it over into the following leave year. The carry-over period for statutory leave accrued during sickness is up to 18 months.

Can holiday accrue during maternity leave?

Yes. Both statutory holiday entitlement and any additional contractual holiday continue to accrue during the full period of maternity leave (ordinary and additional). Holiday accrued during maternity leave that cannot be taken before the end of the leave year must be carried over and can be taken after the worker returns from maternity leave.

What is the maximum statutory holiday entitlement?

The maximum statutory holiday entitlement under the Working Time Regulations 1998 is 5.6 weeks per year. For a full-time worker working 5 days per week, this equals 28 days (including bank holidays). Workers cannot receive more than 28 days of statutory holiday regardless of hours worked, although employers may offer a higher contractual entitlement on top.

Calculate holiday accrual instantly