Holiday Accrual How does holiday accrual work? Understand how annual leave builds up, accrual during absence, and calculating holiday for part-year workers.
Last updated: 30 January 2025 Understanding holiday accrual helps you know how much leave you've earned and can take at any point in the year.
How Holiday Accrues
Basic Principle
Holiday builds up over time:
From first day of employment
Proportionally throughout year
Available to use as it accrues
Subject to employer approval
Statutory Minimum
Working Pattern Annual Entitlement Full-time (5 days/week) 28 days (5.6 weeks) Part-time Pro-rata Irregular hours Calculated differently
Monthly Accrual
Standard Calculation
Period Accrual Per month 1/12th of annual entitlement Full-time 28 ÷ 12 = 2.33 days per month Per year Full entitlement
Example
Employee with 28 days annual leave:
Month Days Accrued Total January 2.33 2.33 February 2.33 4.67 March 2.33 7.00 June 2.33 14.00 December 2.33 28.00
Part-Year Workers
Starters Part Way Through Year
If you start mid-year:
Start Date Calculation 1 July 6 months = 14 days 1 October 3 months = 7 days Calculate (Months remaining ÷ 12) × annual entitlement
Leavers Part Way Through Year
If you leave mid-year:
Leave Date Calculation 30 June 6 months = 14 days accrued Check Have you taken more or less? Settlement Paid for untaken or repaid if overtaken
Accrual During Absence
Sick Leave
Rule Detail Statutory holiday Continues to accrue Contractual extra Depends on policy Long-term sick Builds up entitlement On return Can take accrued leave
Maternity/Paternity Leave
Leave Type Accrual Maternity leave Full accrual Paternity leave Full accrual Adoption leave Full accrual Shared parental Full accrual
Other Absence
Absence Type Statutory Accrual Jury service Usually yes Unpaid leave Depends on arrangement Sabbatical Depends on terms Suspension Yes
Calculating Accrued Holiday
Formula
Accrued holiday = (Months worked ÷ 12) × Annual entitlement
Examples
Scenario Calculation Accrued 3 months, 28 days entitlement 3/12 × 28 7 days 6 months, 25 days entitlement 6/12 × 25 12.5 days 9 months, 30 days entitlement 9/12 × 30 22.5 days
Rounding
Approach Example Round up (common) 2.33 → 3 days Keep fractions 2.33 days Round to half days 2.33 → 2.5 days
Check your employer's policy on rounding.
Holiday Year
When It Runs
Type Common Periods Calendar year January - December Tax year April - March Custom Any 12-month period Anniversary From start date
Why It Matters
Aspect Impact Accrual Restarts each year Carry over Rules apply at year end Planning Book leave accordingly
Taking Holiday as It Accrues
Rules
Rule Detail Can take As it accrues Employer approval Still needed In advance Some employers allow Company policy Check rules
Employer Rights
Employer can:
Require notice for holiday
Refuse dates (with notice)
Set mandatory holiday periods
Control timing
Negative Holiday Balance
Taking More Than Accrued
Situation Rule Employer allows Can go into negative If you leave May need to repay Contractual term Should be agreed Limits Employer's discretion
Recovery on Leaving
Position Outcome More taken than accrued Deduction from final pay Less taken than accrued Payment in lieu Check contract Deduction clause needed
Irregular Hours Workers
Different Calculation (from 2024)
For irregular hours workers:
Method Calculation Accrual 12.07% of hours worked Each pay period Calculate entitlement More complex Than standard accrual
Who This Applies To
Worker Type Accrual Method Zero-hours contracts 12.07% method Casual workers 12.07% method Term-time only May use 12.07% Regular part-time Standard pro-rata
Enhanced Entitlement
Above Statutory
Entitlement Accrual Statutory 28 days Accrues as above Contractual extra Per employer policy May accrue differently Check contract
Example
Component Days Accrual Statutory 28 Automatic Contractual extra 5 May need service Total 33 Combined
Year End
Carry Over Rules
Situation Carry Over Unused statutory Limited (1.6 weeks) Couldn't take (sick) May carry over Employer policy May allow more "Use it or lose it" Check rules
Planning
Action Timing Check remaining Before year end Book leave Use entitlement Discuss carry over If needed
Practical Tips
Tracking Accrual
Method How HR system Automatic tracking Payslip May show accrued/taken Manual calculation Use formulas above Ask HR If unsure
Common Issues
Issue Solution Unsure how much accrued Calculate or ask HR Want to take more than accrued Request in advance (employer decision) Leaving with untaken Claim payment in lieu Leaving with overtaken Expect deduction
New Employees
Tip Reason Ask about holiday year Know when it resets Understand accrual rate Plan your leave Check advance booking Some allow it Know carry over rules For year end
Frequently Asked Questions
How does holiday accrual work? Holiday accrues gradually throughout the year. The statutory minimum is 5.6 weeks (28 days for full-time). It accrues from day one of employment at a rate of 1/12th of annual entitlement per month worked.
Do I accrue holiday while off sick? Yes. You continue to accrue statutory holiday entitlement while on sick leave. This is important for long-term sickness - you build up annual leave that you can take when you recover.
How much holiday have I accrued? Calculate by: (months worked ÷ 12) × annual entitlement. For example, after 6 months with 28 days entitlement: 6/12 × 28 = 14 days accrued. Check your payslip or HR system for exact figures. Disclaimer: This information is for general guidance only and does not constitute legal advice. Employment law is complex and changes frequently. For specific situations, consult ACAS, a qualified employment lawyer, or HR professional.