Why you need a holiday accrual calculator
If you work a full calendar year at a company, calculating your holiday is easy—you simply get your full contractual allowance (usually 28 days or more). However, if you join a company part-way through the year or hand in your notice to leave, you are only entitled to a portion of that leave. This is where a holiday accrual calculator becomes essential.
Perfect for new starters and leavers
In the UK, holiday entitlement builds up (accrues) smoothly over the course of the year. During your first year of a new job, the law states that your leave accrues at a rate of one-twelfth (1/12) of your total annual entitlement per month. For leavers, HR departments use a daily pro-rata calculation to ensure you get paid exactly what you have earned up to your final working day.
How to calculate pro rata holiday entitlement
The standard formula used by UK businesses to calculate accrued holiday days is surprisingly simple once you break it down:
- First, count the exact number of days between the start of your leave year (or your start date) and your calculation date.
- Divide that number by 365 (the total days in a year) to find the proportion of the year you have worked.
- Multiply that fraction by your full annual holiday allowance.
Our calculator automates this math, factoring in the exact calendar days between your selected dates to give you a highly accurate figure.
Handling payment in lieu of untaken holiday
If you are leaving your job, the number produced by this calculator is critical. Once you know your accrued holiday, you must subtract any days you have already taken off this year. If the resulting number is positive, you have untaken holiday.
By law, your employer must pay you for this untaken accrued statutory leave in your final payslip. This is known as "Payment in lieu of holiday". Conversely, if you have taken more holiday than you have accrued by your leave date, your employer is legally allowed to deduct the overpaid amount from your final wage.