How much holiday does an agency worker build up?
Agency workers on irregular hours, or who work only part of the year, build up holiday at 12.07% of the hours they work, so 40 hours earns 4.83 hours of paid leave. Employers may instead pay rolled-up holiday pay of 12.07% of pay, shown separately on the payslip. Regular-hours workers get 5.6 weeks a year.
Last checked 26 October 2026. General information, not legal or tax advice.
How the 12.07% accrual works
Statutory holiday is 5.6 weeks a year. A worker who takes all of it works the other 46.4 weeks, and 5.6 divided by 46.4 is 12.07%. So for leave years starting on or after 1 April 2024, irregular-hours and part-year workers build up holiday at 12.07% of the hours they actually work in each pay period.
- Irregular-hours worker: the hours they are paid for in each pay period are wholly or mostly variable under their contract. Most temps on a call-off basis fit here.
- Part-year worker: contracted to work only part of the year, with at least a week in which they are not working and not paid, such as term-time or seasonal work.
Anyone else is a regular-hours worker and gets 5.6 weeks a year in the usual way.
Worked example: 32 hours at the National Living Wage
A temp works 32 hours in a week at £12.71 an hour, so their pay for the hours is £406.72.
| Method | Sum | Result |
|---|---|---|
| Build up leave | 32 hours x 12.07% | 3.86 hours of paid leave, worth £49.09 at £12.71 |
| Rolled-up holiday pay | £406.72 x 12.07% | £49.09 paid with the week's wages, £455.81 in all |
Either way the cost is the same. The difference is timing: built-up leave is paid when the worker takes it, while rolled-up pay goes out every pay day and the worker takes the time off unpaid.
Rolled-up holiday pay: the rules
Rolled-up holiday pay is lawful for irregular-hours and part-year workers only, in leave years starting on or after 1 April 2024. You work out 12.07% of the worker's total pay for the pay period and pay it at the same time.
- It must be clearly marked as a separate item on each payslip.
- It is worked on total pay for the period, so include overtime, commission and bonuses the worker is paid.
- For regular-hours workers, building holiday pay into the hourly rate is still not allowed.
- The worker should still take the time off. Rolled-up pay changes when holiday is paid, not whether the worker gets a break.
When 5.6 weeks applies instead
A worker with regular hours gets 5.6 weeks of paid holiday a year, capped at 28 days. That cap only bites for people who work more than five days a week. Bank holidays can be counted as part of the 5.6 weeks.
| Days worked each week | Statutory holiday a year |
|---|---|
| 1 | 5.6 days |
| 2 | 11.2 days |
| 3 | 16.8 days |
| 4 | 22.4 days |
| 5 | 28 days |
| 6 | 28 days (capped) |
What rate holiday is paid at
For the first 4 weeks of statutory leave, pay the normal rate, which includes regular overtime and certain bonuses and commission. The remaining 1.6 weeks can be paid at basic rate, without those extras. If a worker has been with the same hirer for 12 weeks, the Agency Workers Regulations may also give them the hirer's own holiday terms, which can be more generous.
Holiday pay is earnings, so employer National Insurance and pension contributions apply to it. The temp margin calculator includes the 12.07% in the true cost of an hour.
Questions people ask
Why is holiday pay 12.07%?
Statutory holiday is 5.6 weeks a year. A worker who takes 5.6 weeks off works the other 46.4 weeks, and 5.6 divided by 46.4 is 12.07%. So for every hour worked, an irregular-hours or part-year worker builds up 0.1207 of an hour of paid holiday, in leave years starting on or after 1 April 2024.
Is rolled-up holiday pay legal?
Yes, for irregular-hours and part-year workers in leave years starting on or after 1 April 2024. You add 12.07% of the worker's pay for the period and show it as a separate line on each payslip. For regular-hours workers, building holiday pay into the hourly rate is still not allowed.
Do agency workers get the same holiday as permanent staff?
Every worker has the statutory 5.6 weeks, or the 12.07% accrual if their hours are irregular. After 12 weeks in the same role with the same hirer, the Agency Workers Regulations also give them the same annual leave as a comparable direct recruit, which can be more than the statutory minimum.
What rate should holiday be paid at?
For the first 4 weeks of statutory leave, pay the normal rate, which includes regular overtime and certain bonuses and commission. The remaining 1.6 weeks can be paid at basic rate. For rolled-up holiday pay, the 12.07% is worked on the worker's total pay for the pay period.
Sources
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