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Term Time Pay

Rolled-up holiday pay explained

Last reviewed 5 October 2026

Rolled-up holiday pay means getting your holiday pay as an extra percentage of each pay packet, instead of when you take leave. Since April 2024 it's allowed for part-year and irregular-hours workers, at a rate of at least 12.07%, shown separately on your payslip.

If you’re paid by the hour, for example as a lunchtime supervisor, casual cover or cleaner, your holiday pay may be “rolled up”: added to every payslip as a percentage, instead of paid when you take leave.

What changed in 2024

For years, rolled-up holiday pay wasn’t allowed: the courts said holiday should be paid when it’s taken. For leave years starting on or after 1 April 2024, the law changed. Employers may now roll up holiday pay for:

The rules

  1. At least 12.07% of the pay for work done in the pay period.
  2. Paid at the same time as the pay for that work.
  3. Shown as a separate item on your payslip. A line saying “holiday pay included” isn’t enough.
  4. You keep the right to take time off. It’s just already been paid for.

What does 12.07% include?

The 12.07% applies to your pay for work done. For the main part of statutory leave, “normal pay” includes regular overtime, payments linked to tasks you’re required to do (such as commission), and some allowances, not just basic pay. If you regularly do extra hours, check they’re included.

Worked example

£14.00 an hour, 30 hours a week, 39 weeks:

If your employer used 10.77% instead, you’d get £1,764.13, which is £212.94 a year less. See why 10.77% is wrong.

Is rolled-up pay good or bad?

Salaried term-time staff

If you’re on an annual salary in 12 equal instalments, your holiday is built into the salary, not rolled up. You won’t see a separate holiday line, and that’s normal. Use the holiday pay checker with “included in my salary” to check it.

Keep your payslips

Employers must now keep holiday records for 6 years (from April 2026), but it’s worth keeping your own payslips too. They’re your evidence if you need to challenge an underpayment.

Frequently asked questions

Is rolled-up holiday pay legal?

Yes for part-year and irregular-hours workers, for leave years starting on or after 1 April 2024, if it is at least 12.07% of pay for work done and shown separately on the payslip. For other workers it is still not allowed.

Do I still get time off with rolled-up holiday pay?

Yes. You are still entitled to take holiday. You have simply been paid for it in advance, so the time off itself is unpaid.

What pay is the 12.07% worked out on?

On your pay for work done in the pay period. For the main part of statutory leave, that should include regular overtime, commission and some other payments, not just basic pay.

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