Holiday Pay Calculator – Estimate Annual Leave Pay (Fixed, Hourly & Variable Hours)

Calculate holiday pay for fixed salary, hourly, or variable hours with overtime and commission. Includes reference period average, pay breakdown chart, and CSV export. Free educational tool.

Holiday Pay Calculator

Estimate how much you'll be paid for time off based on your pay pattern, including fixed salary, hourly rates, or variable pay with overtime and commission.

Holiday Pay Calculator

Estimate how much you'll be paid for time off based on your pay pattern.

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Optional: variable pay, overtime, allowances & policies

Some policies include overtime, commission, and allowances in holiday pay. Adjust to match your contract.

Include overtime
Include allowances
Include commission/bonus
Tax/withholding estimate
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Estimated holiday pay

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Plan time off without surprises
Supports variable hours and bonuses
Export a pay breakdown for HR
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Detailed Holiday Pay Breakdown

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How Holiday Pay is Calculated

Holiday pay calculation depends on your employment pattern and pay structure. The three main methods are:

Fixed Salary Method

For employees with a fixed salary and regular hours, holiday pay is typically calculated by determining a daily or hourly rate from the annual or periodic salary.

\[ \text{Daily Rate} = \frac{\text{Salary per Period}}{\text{Paid Workdays per Period}} \]
\[ \text{Holiday Pay} = \text{Holiday Days} \times \text{Daily Rate} \times \text{Multiplier} \]
Example:

If you earn $5,000/month working 5 days/week (approximately 22 workdays/month), taking 5 days of holiday:

Daily Rate = $5,000 ÷ 22 = $227.27
Holiday Pay = 5 days × $227.27 = $1,136.36

Hourly Rate Method

For hourly workers with relatively consistent hours, the calculation multiplies the hourly rate by the hours of leave taken.

\[ \text{Holiday Pay} = \text{Holiday Hours} \times \text{Hourly Rate} \times \text{Multiplier} \]

Average Pay Method (Reference Period)

For workers with variable hours, commission, or irregular pay patterns, many jurisdictions require calculating an average from a reference period (commonly 52 weeks).

\[ \text{Average Hourly Pay} = \frac{\text{Total Included Pay}}{\text{Total Hours Worked}} \]
\[ \text{Holiday Pay} = \text{Holiday Hours} \times \text{Average Hourly Pay} \times \text{Multiplier} \]

The reference period approach ensures that variable elements like overtime, commission, and bonuses are fairly reflected in holiday pay when they form a regular part of compensation.

What Counts as Pay?

Holiday pay calculation can be complex because employment law and company policies vary regarding which pay elements should be included. Here are common considerations:

  • Base salary or hourly pay: Always included as the foundation of holiday pay.
  • Regular overtime: In many jurisdictions, overtime that is regularly worked (guaranteed or compulsory) must be included in holiday pay calculations.
  • Commission and bonuses: If commission or performance bonuses are intrinsically linked to work performed and earned regularly, they may need to be included, particularly under the reference period method.
  • Allowances: Regular allowances directly linked to performing job duties (such as shift premiums or on-call pay) are often included, while expense reimbursements (travel, meals) are typically excluded.
  • Voluntary overtime: Treatment varies; if there's a settled pattern of voluntary overtime over time, some jurisdictions may require including it.

Important: The rules vary significantly by country, state, and employment contract. Always verify with your HR department, employment contract, or local labor authority.

Frequently Asked Questions

How do I calculate holiday pay for variable hours?
Use the Average Pay (reference period) method. Calculate your average hourly pay over a reference period (commonly 52 weeks) by dividing total pay by total hours worked, then multiply by the holiday hours taken. Exclude weeks with zero pay and include all regular pay elements like overtime and commission.
Does holiday pay include overtime?
It depends on your jurisdiction and contract. Regular, compulsory, or guaranteed overtime is typically included in holiday pay calculations in many regions. Voluntary overtime may be included if it forms a regular pattern. Check your local employment laws and company policy.
Does holiday pay include commission?
In many jurisdictions, yes. Commission that is intrinsically linked to work performed and earned regularly should be included in holiday pay calculations, typically averaged over a reference period. This ensures workers aren't financially disadvantaged by taking time off.
What is the 52-week reference period?
A 52-week reference period is a lookback window used to calculate average pay for workers with variable hours or pay. You sum all qualifying pay received during the 52 weeks prior to the holiday, divide by hours worked, and use that average rate to calculate holiday pay. This method became standard in the UK in 2020 and is used in various forms globally.
How do you calculate average holiday pay?
Calculate average holiday pay by: (1) selecting an appropriate reference period (e.g., 52 weeks), (2) summing all included pay elements (base, overtime, commission, allowances), (3) dividing by total hours worked to get an average hourly rate, and (4) multiplying that rate by holiday hours taken and any applicable multiplier.
What are the different holiday pay calculation methods?
The three main methods are: (1) Fixed Salary – dividing periodic salary by workdays/hours, (2) Hourly Rate – multiplying hours by hourly wage, and (3) Average Pay/Reference Period – averaging variable pay over 12-52 weeks. The method used depends on whether your pay is fixed or variable.
Should allowances be included in holiday pay?
Regular allowances intrinsically linked to job performance (shift premiums, on-call pay, geographic allowances) are generally included in holiday pay. However, expense reimbursements like travel costs or meal allowances that cover incurred expenses are typically excluded. Policy varies by jurisdiction.
What's the difference between gross and net holiday pay?
Gross holiday pay is the total amount before any deductions. Net holiday pay is what you receive after tax, social security contributions, and other withholdings are deducted. This calculator provides gross pay and an optional net estimate based on an estimated withholding percentage you enter.
How do I export my holiday pay calculation?
Click "Show holiday pay breakdown" below the results, then use "Export as CSV" to download a spreadsheet with all inputs, calculations, and reference period data. You can also use "Print-friendly version" to generate a formatted document for your records or HR department.
Can I save my calculator preferences?
Yes. In the "Optional" settings accordion, enable "Remember my inputs." Your preferences and last-used values will be saved locally in your browser for future visits. This feature respects your privacy – data never leaves your device.
Educational Tool Disclaimer This Holiday Pay Calculator is an educational tool designed to provide estimates based on common calculation methods. Holiday pay rules vary significantly by country, state, employer policy, employment contract, and local labor law—especially for workers with variable hours, commission, or overtime. This tool does not constitute legal, HR, or financial advice. Always verify your holiday pay entitlement with your employment contract, HR department, or local labor authority. OmniCalculator.Space assumes no liability for decisions made based on these estimates.

About This Calculator

The Holiday Pay Calculator was developed by OmniCalculator.Space, a comprehensive online platform providing free calculators and tools for work, finance, education, and everyday life.

This tool supports multiple calculation methods to accommodate different employment types, from fixed-salary workers to those with complex variable pay structures including overtime, commission, and allowances. The reference period functionality aligns with modern employment standards adopted in various jurisdictions globally.

All calculations are performed client-side in your browser. No personal or financial data is collected or transmitted. Optional data persistence uses only local browser storage when you explicitly enable the "Remember my inputs" feature.

External References