If staff work casual or irregular hours it is easiest to calculate the holiday entitlement that accrues as hours are worked.

The statutory minimum holiday entitlement for a full time worker is 28 days (5.6 weeks). This includes 8 statutory bank holidays.

5.6 weeks is equivalent to 12.07% of the total hour worked.  This percentage applies to all workers, full time or part time.

The 12.07% is calculated as follows:

5.6 weeks holiday divided by 46.4 weeks (52 weeks full year – 5.6 weeks), multiplied by 100 = 12.07%.   (The 5.6 weeks is excluded from the year as you would not be present during the 5.6 weeks in order to accrue annual leave.

This can be further broken down to the amount of holiday pay accrued per hour worked.

60 (minutes) x 12.07% = 7.24 minutes (round down to the nearest whole minute = 7 minutes).

If you wish to pay holiday pay to casual/irregular hours workers each time you pay them for hours worked (as opposed to giving them the time off which is difficult or paying them at the end of their contract or the year), multiply the number of hours worked by 7, then divide by 60 (minutes) to arrive at a payable decimal figure.

For example:

Hours worked                                           15
Holiday entitlement per hour worked        7 minutes
15 x 7                                                        105 minutes
105 divided by 60 minutes                        1.75 hours

The payable holiday is                              1.75 Hours

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