Rolled-up holiday pay
Rolled-up holiday pay is an extra percentage paid with the wages for work done, instead of paying holiday when the person takes the day. From leave years beginning on or after 1 April 2024 it is allowed only for irregular-hours and part-year workers. It is not allowed for a regular week.
The 12.07% and the limits
The percentage is 12.07, because 5.6 weeks of statutory leave divided by 46.4 working weeks is about 0.1207. This site’s holiday pay calculator multiplies by 5.6 ÷ 46.4 exactly and labels the rate 12.07%. It is applied to the pay for work done in the pay period, and it is paid at the same time as that pay. A contract that gives more than 5.6 weeks needs a higher percentage. The statute does not supply one.
GOV.UK is explicit that a regular-hours worker, full-time or part-time, cannot have holiday pay folded into the hourly rate. A steady three-day week is regular. Do not use rolled-up holiday pay for it. Irregular hours means the paid hours are wholly or mostly variable. Part-year means they are required to work only part of the year, with unpaid weeks in between. If the leave year began on or before 31 March 2024, this method is not the one GOV.UK describes for that year.
The leave is still owed
Paying the uplift does not remove the right to take the leave. It changes when the money arrives. The itemised pay statement has to show the holiday-pay amount for that period as its own figure. Tell people before you start, because it can be a change to the contract. Agency workers need it in the Key Information Document. If someone on this method is later off sick or on family-related statutory leave, holiday accruing during that absence is paid from the average holiday pay of the relevant period. The calculator does not work out that average.
Shiftbrook does not pay the uplift and does not print an itemised pay statement. It can accrue 12.07% of approved timesheet hours for a person marked as irregular hours, which is the time, not the money. Download the CSV and run payroll outside the product. The holiday entitlement calculator shows the hours. The holiday pay calculator shows the uplift from a figure you type. Neither one is legal advice.
Sources
Holiday pay calculator · Holiday accrual · Holiday entitlement calculator · Leave