Holiday Pay Calculator
When you leave a job through redundancy, you are entitled to payment for any holiday you have earned but not taken. This calculator helps you work out exactly how much you are owed for accrued but untaken holiday.
Calculate Untaken Holiday Pay
Unlike redundancy pay, which requires two years’ qualifying service, you start building holiday entitlement from your first day.
Holiday Pay Owed
For 8 untaken holiday days
Calculation Breakdown
| Annual entitlement | 28 days |
| Pro-rata entitlement (to leaving date) | 20 days |
| Holiday already taken | 12 days |
| Untaken holiday | 8 days |
| Daily pay rate | £120 |
| Holiday Pay Due | £960 |
How Holiday Accrual Works
The Working Time Regulations 1998 set out the statutory minimum holiday every worker must receive
📊 Pro-Rata Entitlement
If you have not worked a full holiday year, your entitlement is calculated pro-rata. The formula is: (Months worked / 12) x Annual entitlement.
Pro-rata entitlement = (Months worked / 12) x Annual entitlement
Emma is made redundant after 6 months with 28 days annual entitlement. Her pro-rata entitlement: (6/12) x 28 = 14 days. If she has taken 10 days, she is owed payment for 4 days.
💰 The 12.07% Accrual Method
Under the accrual method, holiday builds up gradually based on hours worked. The 12.07% figure derives from dividing 5.6 weeks of holiday by 46.4 working weeks (5.6 / 46.4 = 0.1207).
Holiday accrued = Hours worked x 12.07%
David has worked 800 hours. Holiday accrued: 800 x 12.07% = 96.56 hours. At £15 per hour, his accrued holiday value is £1,448.
⚠ Payment for Untaken Holiday
When employment ends through redundancy, you must receive payment for all accrued but untaken statutory holiday. Your employer cannot refuse this. The payment should be calculated at your normal rate of pay and is subject to tax and National Insurance.
Holiday pay = Untaken days x Daily rate
If you have taken more holiday than your pro-rata entitlement, your employer may deduct the overpayment from your final pay, though some waive this in redundancy situations.
Common Questions
Answers to frequently asked questions about holiday pay on redundancy
Yes. You have a statutory right to payment for all accrued but untaken holiday from your first day of employment. Your employer cannot refuse to pay statutory holiday entitlement – this is required under the Working Time Regulations 1998. You can pursue unpaid holiday as an unlawful deduction from wages.
Yes, holiday pay is always taxable as earnings. Unlike redundancy pay with its £30,000 tax-free threshold, holiday pay is subject to Income Tax and National Insurance from the first pound.
Workers on zero-hours contracts accrue holiday using the 12.07% method based on hours worked. Holiday pay should be based on average pay over the previous 52 paid weeks. The reference period can look back up to 104 weeks to find 52 paid weeks.
Your employer can deduct the overpayment from your final pay, though some waive this in redundancy situations. Check your contract for specific terms about reclaiming overpaid holiday.
You have three months less one day from the underpayment date to bring an employment tribunal claim, or six years through the county court.
Calculate Your Full Redundancy Package
Holiday pay forms part of your final settlement alongside your redundancy pay and notice pay. Use our calculators to understand your complete entitlement.
Calculate Redundancy Pay