How this is calculated
Full-time statutory entitlement is 5.6 weeks a year. For a standard 5-day week that equals 28 days. This calculator scales that figure by the proportion of the 365-day leave year the employee was actually employed for, which is the correct approach for someone starting or leaving partway through the year.
It then multiplies by days-per-week worked to reflect part-time staff, and finally subtracts any leave already taken to show what remains outstanding, a figure that becomes especially important when calculating a leaver's final payslip.
For a leaver, unused statutory holiday must be paid in lieu on the final payslip; it cannot simply be lost, which makes an accurate pro-rata calculation a legal requirement, not just good practice.
Mid-year starters and leavers
New starters typically accrue holiday from their first day of employment, even during any probationary period, so entitlement should be tracked from day one rather than only once probation ends.
For leavers, employers must calculate exactly how much statutory leave the employee has accrued up to their leaving date and compare it with how much they have taken; any shortfall is paid as holiday pay in lieu, and any excess taken can, if the contract allows, be deducted from final pay.
Keeping records that stand up to scrutiny
Because holiday disputes are a common source of employment tribunal claims, it is worth keeping a simple running record for each employee showing entitlement accrued, days taken and days remaining, updated at each pay run rather than reconstructed only when a query arises.
Where irregular-hours workers are involved, using the 12.07% accrual method from April 2024 onward rather than the weeks-based method here avoids underpayment risk specific to that group.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
How is holiday entitlement calculated for a new starter?
By taking the statutory 5.6-week annual entitlement, prorating it for days per week worked, and further prorating it for the proportion of the leave year the employee has actually been employed since starting.
What happens to unused holiday when someone leaves?
Any statutory holiday accrued but not taken must be paid as holiday pay in lieu on the final payslip. It cannot lawfully be forfeited by the employer.
Can an employee take more holiday than they have accrued?
Only if the employer agrees or the contract permits it; otherwise any excess taken before it has accrued can usually be recovered from final pay if the employee leaves before accruing it.
Does this apply to zero-hours or casual workers?
Not in the way this calculator works. Since April 2024, irregular-hours and part-year workers accrue leave at 12.07% of hours worked in each pay period, which needs a different calculation method.