[Rules applicable from 06.04.25 onwards]
Everything you need to know about holiday pay
Holiday pay is based on the principle that a worker should not suffer financially for taking holiday. Enforced by the Working Time Directive 1998, employers must provide the opportunity for employees to take paid leave during their employment, or receive their holiday pay in advance of taking holiday. Either way, the worker should not be at a financial loss for taking time off.
A week’s pay is worked out according to the number of hours someone works and how they’re paid for those hours. This includes full-time, part-time, term-time, and casual workers.
How is the holiday pay rate calculated?
Holiday pay is calculated at 12.07% of your hourly rate – paid out on top of that rate.
So, if, for example, you worked for £12 p/h, your overall hourly rate would be:
£12 + 12.07% = £13.45 p/h
If you worked an 8-hour shift, at the rate above, you’d get an extra £11.60 in holiday pay.
How will I receive my holiday pay?
You’ll now receive Rolled-Up Holiday Pay, which means it’ll be paid with your regular wages, rather than accrued over a period of time.
So that 12.07% will be added to any hours you work during any given week and you’ll receive all of your holiday pay, for that week, in your next payslip (it will show as ‘holiday pay’, with the amount next to it).
How do I now take holiday then?
Simply don’t book shifts on the days you want to take off as holiday. You would’ve already been paid in advance for it, on top of your wages, so the holiday is yours to take.
Will I receive holiday pay for cancelled shifts?
No, holiday pay can only be earned for shifts you have worked.
How will double time, bank holidays, and night shifts affect holiday pay?
Holiday pay is always calculated at a rate of 12.07% of the hourly rate you receive. If your hourly rate is increased, you will naturally earn more holiday pay, but the calculation of 12.07% will not change.
Will I be paid any holiday pay for overbooked shifts where I am not required?
Yes, you will receive holiday pay for overbooked shifts.
I’ve been sent home early, how will this impact the amount of holiday pay I receive?
You’ll only receive holiday pay for the hours you have worked. If your hours are reduced, you’ll only receive holiday pay for those hours.
I’ve just received my payslip, and I think I’ve been paid less than I should have – what should I do about this?
Please contact us via the Support section of the Indeed Flex app and we’ll be happy to discuss any queries you have in more detail.