How to Calculate Pro Rata Holiday Entitlement (The 365-Day Formula)
If you work a standard full calendar year at a UK company, calculating your holiday is easyโyou simply get your full contractual allowance. However, if you join a company part-way through the year or hand in your notice to leave, you are only entitled to a pro rata portion of that leave.
For standard salaried employees, HR departments use a precise 365-day calculation to ensure you get paid exactly what you have earned up to your final working day. The formula is:
(Days worked รท 365) ร Total Annual Holiday Allowance = Gross Accrued Holiday
Example Use Case: Sarah gets 28 days a year. Her leave year starts Jan 1st. She leaves exactly 6 months into the year (approx 182.5 days) and has already taken 5 days off. Her Gross Accrued is 14 days. Subtracting the 5 days taken, her final balance owed is 9 days.
| Days Worked Per Week | Statutory Annual Holiday (Days) | Includes Bank Holidays? |
|---|---|---|
| 5 Days (Full-time) | 28 Days | Yes (Employer decides if they count towards the 28) |
| 4 Days (Part-time) | 22.4 Days | Pro-rata applied |
| 3 Days (Part-time) | 16.8 Days | Pro-rata applied |
| Irregular Hours | Calculated at 12.07% | Accrued as you work |
Resigning or Fired? Calculating Your Final Holiday Pay (Payment in Lieu)
If you are leaving your job, the "Remaining Balance Owed" produced by the calculator above is critical. By law, your employer must compensate you for any accrued statutory annual leave that you have not taken by your final day.
This is known in the UK as "Payment in lieu of holiday". It must be included in your final payslip. Conversely, if your balance is negative (meaning 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.
The 12.07% Rule for Part-Time & Irregular Hours
Following updates to the UK Employment Rights Regulations (specifically affecting holiday years starting on or after April 1, 2024), the way holiday is calculated for irregular hours workers and part-year workers has been clarified.
Instead of the 365-day pro-rata method, these workers accrue holiday at a rate of 12.07% of the hours they have actually worked in a pay period. Why 12.07%? Because standard statutory leave is 5.6 weeks a year, leaving 46.4 working weeks (5.6 รท 46.4 = 12.07%). If your shifts vary week by week, you can use our weekly hours calculator to sum up your total hours worked before applying the 12.07% rule in the tool above.