As a temporary worker your Holiday Pay is calculated at 12.07% of your basic pay. The 12.07% method is often used for workers who don’t have a predictable working pattern throughout the year, such as temporary or agency workers.
Holiday Pay Calculator
Calculate how much Holiday Pay you have accrued based on the days you have worked and your daily rate:
Holiday Pay is Accrued for each day you work
Holiday Pay is not ‘kept back from your pay’ but rather it is accrued whenever you work for Step Teachers. Unless you request to receive your Holiday Pay weekly, which you can when you first register with Step Teachers (see extract from application form below) or anytime afterwards, you will automatically receive your accrued Holiday Pay during the school holidays at the end of each Term.
If your preference is to receive your Holiday Pay Accrued and Paid automatically at the end of each Term or when requested:
- Your weekly pay will exclude the Holiday Pay element of your Daily rate and you will only receive your Basic Pay. For example, if your Daily rate is £150, you will receive £133.84 in your Gross weekly pay. While the £16.16 Holiday Pay element would be accrued along with any other Holiday Pay accrued and paid to you automatically at the end of Term.
If your preference is to receive your Holiday Pay Accrued and paid weekly in arrears:
- Your weekly pay will include the Holiday Pay element of your Daily rate and you will receive it alongside your Basic Pay. For example, if your Daily rate is £150, you will receive £133.84 in Basic Pay alongside £16.16 Holiday Pay giving you your total Gross Daily rate of £150. With your accrued Holiday Pay already paid, you will not receive additional Holiday Pay payments at the end of Term.
Whether you choose to receive the Holiday Pay you accrue at the end of each week or at the end of the term; it is accrued at the same rate using the same 12.07% method as stipulated in UK legislation.
Gross Pay is processed and subject to your individual tax circumstances.
Why is the Holiday Pay calculation based on 12.07% of my basic pay?
The 12.07% rate is derived from the statutory entitlement of 5.6 weeks of holiday per year for full-time workers in the UK. Here’s the calculation:
- There are 52 weeks in a year.
- Statutory holiday entitlement is 5.6 weeks.
- The proportion of holiday entitlement to the total working year is 5.6 weeks / (52 weeks - 5.6 weeks) = 12.07%.
This means that for every day/hour a temporary or agency worker works, they accrue 12.07% of that time as holiday pay.
Holiday pay based on 5.6 weeks per year worked pro rata is a fixed annual calculation applied to a permanent employee. However, the 12.07% method is essentially a pro rata calculation but applied on a rolling basis for each hour worked, which is suitable for temporary and agency workers with variable days/hours.
Reasons for Using 12.07% Method
- Unpredictable Hours: Temporary workers often have variable hours and may not work a consistent number of weeks per year. The 12.07% method ensures they accrue holiday pay fairly for every hour they work.
- Compliance with Regulations: This method complies with UK regulations for calculating holiday pay for workers without a fixed work schedule.