What 12.07% means
Holiday accrues at 12.07% of the hours worked. It is the statutory method for irregular-hours and part-year staff — the casual, variable-shift people most venues run on — and it produces two numbers from the same percentage:
- 12.07% of hours worked is the paid holiday accrued, in hours.
- 12.07% of gross pay is the rolled-up holiday pay, in cash.
They are the same figure said twice. 1,200 hours worked accrues 144.8 hours of holiday; at £12.71 an hour, that same 1,200 hours is £15,252 of gross pay, and 12.07% of it is £1,840.92 of holiday pay.
Where the 12.07% comes from
Every UK worker is entitled to 5.6 weeks of paid holiday a year. Take those 5.6 weeks out of the 52-week year and 46.4 working weeks remain. 5.6 ÷ 46.4 = 12.07%. So each hour actually worked earns 12.07% of an hour of paid holiday, which is why the method works for staff whose hours nobody can predict at the start of the year.
Rules as at 28 August 2026. Check the holiday pay and entitlement reforms guidance on GOV.UK before acting on a figure.
Rolled-up holiday pay: who it is for
Paying the 12.07% on each payslip instead of when holiday is taken is rolled-up holiday pay, and three conditions attach to it:
- It applies to irregular-hours and part-year staff only. Fixed-hours staff cannot be paid this way.
- It applies to holiday years beginning on or after 1 April 2024.
- It must be itemised as its own line on each payslip, not folded into the hourly rate.
GOV.UK defines an irregular-hours worker as one whose paid hours in each pay period are, under their contract, wholly or mostly variable; a part-year worker is contracted to work only part of the year, with unpaid periods of at least a week within it.
Applies UK-wide
Statutory holiday entitlement and the 12.07% method are set UK-wide. Unlike business rates, there is no England-only variation here.
The common mistake
Rolling up holiday pay for staff on fixed hours. The 2024 reform legalised it for irregular-hours and part-year staff and nobody else — for a fixed-rota staff member it is still unlawful, however variable the venue feels. If you are working out entitlement for someone on set days, switch this calculator to part-time or full-time: they get 5.6 weeks of their own working pattern, capped at 28 days.