Calculate holiday entitlement for zero hours contract workers using the 12.07% accrual method. Enter hours worked and get instant results showing holiday hours accrued, equivalent days, and pay owed.
Enter total hours worked in the pay period (week, month, or year)
Used to convert holiday hours into equivalent days
Enter hourly pay rate to calculate holiday pay owed
The 12.07% method is the government-approved way to calculate holiday entitlement for workers with irregular hours, including those on zero hours contracts.
UK workers are entitled to 5.6 weeks of paid holiday per year. A year has 46.4 working weeks (52 weeks minus 5.6 weeks of holiday). Divide 5.6 by 46.4 and you get 0.1207, or 12.07%.
5.6 weeks ÷ 46.4 working weeks = 12.07%
Hours worked × 0.1207 = Holiday hours accrued
From April 2024, the government confirmed employers can use the 12.07% accrual method for workers classified as having "irregular hours" or who are "part-year workers". This includes zero hours contract workers, casual workers, agency workers, and term-time only staff. The accrual method was introduced by the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023.
Since April 2024, employers of irregular hours and part-year workers can also use "rolled-up holiday pay" — adding the 12.07% to every payslip rather than paying separately when holiday is taken. If you use rolled-up holiday pay, you must show the holiday pay as a separate line item on the payslip. The worker still has the right to take time off, but they have already been paid for it.
A zero hours contract worker works 120 hours in a month at £12.21 per hour:
Holiday hours: 120 × 12.07% = 14.48 hours
Holiday pay: 14.48 × £12.21 = £176.80
Equivalent days (8h shifts): 14.48 ÷ 8 = 1.8 days
Zero hours contract workers have the same statutory holiday rights as any other worker. Here is what the law requires.
Under the Working Time Regulations 1998, all workers — regardless of contract type — are entitled to 5.6 weeks of paid annual leave. For zero hours workers, this accrues proportionally based on hours actually worked. There is no qualifying period; entitlement begins from day one.
Holiday pay for zero hours workers should be calculated based on average earnings over the previous 52 weeks in which work was actually performed (ignoring weeks where no work was done). This is set out in the Employment Rights Act 1996, section 224. If using rolled-up holiday pay, the rate is simply 12.07% of the hourly rate added to each payment.
Employers must keep records of hours worked and holiday taken for at least two years. From April 2026, new record-keeping regulations require employers to maintain records of annual leave accrued, taken, and carried over. Failure to keep adequate records can result in an adverse inference in tribunal claims — meaning the tribunal may assume the worker's version of events.
Workers cannot be paid in lieu of actually taking holiday (except when employment ends). Even if rolled-up holiday pay is used, the worker retains the right to take time off work. Employers who discourage workers from taking leave risk tribunal claims for failure to provide statutory rest.
A calculator gives you a snapshot. TimeTally tracks holiday accrual continuously — as your zero hours workers log time, their holiday entitlement updates automatically. No manual spreadsheets, no calculation errors.
Holiday hours accrue in real-time as workers log shifts. The 12.07% calculation happens automatically with every timesheet entry.
Complete audit trail of hours worked and holiday accrued. Defensible records for HMRC or tribunal if challenged.
Export holiday balances and pay calculations directly to Xero, QuickBooks, or Sage. No manual re-keying.
Yes. Under the Working Time Regulations 1998, all workers are entitled to 5.6 weeks of paid annual leave regardless of their contract type. Zero hours contract workers accrue holiday in proportion to the hours they work. There is no minimum hours threshold — even if someone works one shift, they accrue holiday for that time.
The 12.07% method calculates holiday entitlement by multiplying total hours worked by 0.1207. This figure represents the proportion of a working year that statutory holiday (5.6 weeks) makes up. It was confirmed as a lawful calculation method for irregular hours workers from April 2024 by the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023.
Yes, from April 2024 onwards. Rolled-up holiday pay means adding 12.07% to every payment rather than paying separately when holiday is taken. You must show the holiday pay as a separate line on the payslip. The worker still retains the right to take unpaid time off. This method is only lawful for irregular hours and part-year workers.
When employment ends, the worker must be paid for any accrued but untaken holiday. Calculate this by working out total holiday accrued (12.07% of all hours worked in the leave year) minus any holiday already taken. This payment should appear in the final payslip.
If not using rolled-up pay, holiday pay is based on the worker's average weekly earnings over the previous 52 weeks in which they actually worked (ignoring weeks with no work). This is the 'week's pay' calculation under section 224 of the Employment Rights Act 1996. If using rolled-up pay, it is simply the hourly rate × 12.07%.
There is no automatic statutory right to take bank holidays off, or to receive extra pay for working on them. Employers can include bank holidays within the 5.6 weeks' statutory entitlement. For zero hours workers who may or may not work bank holidays, the simplest approach is to treat all 5.6 weeks as general holiday using the 12.07% method.
You should record: total hours worked each week, holiday accrued (the 12.07% calculation), holiday requested and taken, any holiday carried over, and holiday pay calculations. Keep these records for at least two years. TimeTally tracks all of this automatically when workers submit timesheets.
In most cases it produces equivalent results to the standard method. However, for workers who have periods of no work, the 12.07% method can be slightly less generous because it only counts hours actually worked. The standard 52-week reference method may sometimes give a higher figure. Employers should check which method produces the better outcome if challenged.
