Rate of record
Holiday pay and the minimum wage
Rolled-up 12.07% holiday pay was re-permitted in April 2024 for irregular-hours and part-year workers. The 12.07% must be paid on top of base pay; the base must still clear the NMW floor.
The 2024 working-time amendments
The Working Time (Amendment) Regulations 2023 took effect for leave years starting on or after 1 April 2024. Rolled-up holiday pay returned for irregular-hours and part-year workers only. For all other workers, holiday pay still has to be paid for the actual holiday periodlegislation.gov.uk.
The 12.07% calculation
The 12.07% figure is derived from 5.6 weeks of leave ÷ 46.4 working weeks (52 − 5.6). For a NMW worker, holiday pay is 12.07% of base pay, paid as a separate line on the payslip. It is on top of base pay, not part of itgov.uk.
Who can use rolled-up holiday pay
- Irregular-hours workers (work pattern varies pay period to pay period).
- Part-year workers (paid only for parts of the year, e.g. term-time only).
- Not regular full-time, fixed-shift workers.
NMW interaction
The base hourly rate must clear the NMW band floor. Holiday pay is additional. A rolled-up holiday line that disguises base pay below NMW would breach.