Annual Leave Value Calculator

Annual Leave Guide

Understanding your holiday entitlement

Annual leave is one of the most valuable parts of your employment package, yet many workers don't know exactly what they're entitled to, how much each day is worth, or what happens to unused leave when they change jobs. Here's what you need to know.

UK statutory minimum entitlement

Every UK worker is legally entitled to 5.6 weeks of paid holiday per year under the Working Time Regulations 1998. For a full-time worker on a 5-day week that comes to 28 days. Part-time workers receive a pro-rata entitlement based on their contracted days, so 3 days a week gives a statutory minimum of 16.8 days (typically rounded up to 17).

Employers can choose whether bank holidays are included in this total or given on top. If your employer says "28 days including bank holidays", the 8 UK bank holidays are being counted as part of your statutory 28, meaning your actual flexible leave is only 20 days. If they give bank holidays on top, you have 28 days plus 8, totalling 36.

How your daily leave value is calculated

Your daily rate is simply your annual salary divided by the number of working days in the year. For a standard 5-day week that's 260 days (5 × 52). A £35,000 salary gives a daily rate of £134.62; a £50,000 salary gives £192.31. This is the rate used for holiday pay, which must reflect your normal pay, including regular overtime, commission, and certain allowances following case law clarifications in recent years.

Unused leave when you leave a job

When you resign or are made redundant, your employer must pay you for any accrued but untaken statutory annual leave at your current daily rate. If you've taken more leave than you've accrued by the time you leave, your employer can (and often will) deduct the overpaid days from your final pay. Check your contract, many employers use a 12-month rolling year rather than the April–March tax year.

Carrying over leave and the "use it or lose it" rule

Statutory leave generally cannot be carried over to the next leave year, it's a "use it or lose it" entitlement. However, there are exceptions: if you were unable to take leave due to sickness, maternity leave, or if your employer prevented you from taking it, the leave must be carried over. The COVID-19 pandemic also saw rules relaxed to allow two years of carryover, so some workers may still have legacy entitlement to check. Contractual leave (anything above the statutory minimum) is governed by your contract rather than the Working Time Regulations.

Holiday pay for variable hours and zero-hours workers

Workers without fixed hours (including zero-hours and casual workers) accrue holiday at 12.07% of hours worked, equivalent to 5.6 weeks out of a 46.4-week working year. Since April 2024, employers can use an "accruals" method paying 12.07% of pay in each pay period, or a traditional reference period method using the average pay over the previous 52 weeks. Check which method your employer uses, as it affects when you're paid for your leave.