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From 01 January 2024, holiday pay calculations will be simplified for those working irregular hours. Here’s what you need to know about how the new laws will affect your organisation.

‘Rolled-up’ holiday pay calculations – this will be permitted for those working irregular hours from 01 January 2024. If you want to roll up holiday pay for individuals working irregular hours (you don’t have to!) you will be able to uplift their hourly pay by 12.07% to take account for their holiday.

An example – an employee has worked 20 hours in one pay period (such as a month) at a rate of £12 per hour. You want to include payment for holiday accrued during that period (rolling up their holiday). From 01 January 2024, you can pay them £268.97 for that pay period (which includes an uplift of 12.07% on the £240 they would have otherwise been due).

Get in touch if you require our advice and guidance on these changes and how they’ll impact your organisation directly. You can also access our free, online holiday pay diagnostic tool here and answer seven simple questions to see how the changes affect you.
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.