Timesheets: How to calculate holiday when using timesheets

If you have employees who work irregular hours, zero-hours contracts, or changing shift patterns, their holiday entitlement is usually calculated based on the hours they actually work.

When using Timesheets in WorkSmarter, you can use the employee’s recorded hours to help calculate how much holiday they have accrued.

The standard calculation

For leave years starting on or after 1 April 2024, irregular hours and part-year workers usually accrue holiday at: 12.07% of the hours worked

The calculation is:

Hours worked × 12.07% = holiday hours accrued

This gives you the amount of holiday the worker has built up based on the hours they have worked.

Example calculation

If an employee works 80 hours in a month:

80 × 12.07% = 9.66 hours

This means they have accrued 9.66 hours of holiday for that month.

Another example:

If an employee works 20 hours in a week:

20 × 12.07% = 2.41 hours

This means they have accrued 2.41 hours of holiday for that week.

How to use Timesheets to calculate holiday

To calculate holiday using timesheets:

1. Go to the employee’s approved timesheets.

2. Add up the total number of hours worked for the relevant period.

3. Multiply the total hours worked by 12.07%.

4. Record the result as holiday hours accrued.

For example:

100 hours worked × 12.07% = 12.07 hours of holiday accrued

Why 12.07% is used

The 12.07% calculation is based on the statutory minimum holiday entitlement of 5.6 weeks per year.

A full year has 52 weeks.

If you remove 5.6 weeks of holiday from the year, this leaves 46.4 working weeks.

The calculation is:

5.6 ÷ 46.4 = 12.07%

Holiday pay

When the worker takes holiday, holiday pay should usually be based on their average pay.

For irregular-hours workers, this is normally calculated using a 52-week reference period.

This means you should look at the worker’s previous paid weeks to calculate the average amount they should be paid while on holiday.

Important things to remember

Holiday should be calculated using the employee’s actual hours worked.

This is why keeping accurate and approved timesheets is important. Timesheets give you a clear record of the hours worked and help support holiday calculations.

You should also make sure holiday is calculated up to the employee’s leaving date if they leave part-way through the year.

Simple summary

To calculate holiday for an employee using timesheets:

Add up their approved hours worked, then multiply by 12.07%.

Example:

100 hours worked × 12.07% = 12.07 hours of holiday accrued

Using Timesheets in WorkSmarter helps you keep a clear record of hours worked, making it easier to calculate holiday entitlement accurately for irregular-hours and zero-hours workers.