How Do I Calculate Bank Holiday and Annual Leave Entitlement for Part-Time Workers?

Almost all full-time workers, except those who are genuinely self-employed, are legally entitled to 5.6 weeks’ paid holiday per year. This entitlement is derived from the Working Time Regulations 1998.

When it comes to bank holidays, there is no statutory right for employees to have bank holidays as days off work. It is up to each organisation to determine what their policy will be regarding bank holidays, but it is vital to ensure the policy is clearly spelled out in contracts of employment and annual leave policies.

Example wording for contracts of employment:

• You are entitled to 5.6 weeks statutory paid annual leave to include bank holidays.

OR

• We offer annual leave above the statutory minimum totalling x days inclusive of bank holidays, or x days plus the 8 standard bank holiday dates.

OR

• You may be required to work bank holidays but will receive 5.6 weeks annual leave entitlement across the year.

Once you have devised your policy, you need to think about how this affects part-time workers.

Example:

Employee 1 always works on Mondays and Tuesdays.

Employee 2 always works Wednesdays and Thursdays.

If your organisation always closes on Bank Holiday Mondays and you automatically pay leave for bank holidays, Employee 1 is going to receive more paid days off per year than Employee 2.

This would be unfair. Employees should be treated equally, whether part-time, full-time, or zero-hours, and this includes entitlement to paid annual leave.

To calculate leave for part-timers with a regular number of hours each week, you simply divide the full-time equivalent of holiday entitlement by the number of hours in a full-time week, and then and multiply by their part-time hours.

Example for Employees 1 and 2:

28 days holiday allowance (including bank holidays) for a full timer / 40 hours in a full-time week x 16 hours in a part-time week = 11.2 days holiday allowance per year (including bank holidays)

All part-time employees would then need to use their holiday allowance to book bank holidays off work, even if the business closes on bank holidays, to be paid for those days off.

If an employee does not have a standard number of days each week because the contract states that they work variable days or hours, you can calculate holiday entitlement on an accrual basis. It may be easier to calculate their annual entitlement in hours rather than days. To calculate accrued holiday, multiply the total hours worked in a pay period by 12.07% (or 0.1207).

Example:

90 hours worked in a 4-week period x 0.1207 = 10.86 hours of holiday accrued

Bank holidays are one of the trickiest elements of annual leave to get your head round. Add part-time employees and zero-hours or casual workers to the mix and it gets even more complex. We are always happy to assist clients with annual leave and bank holiday calculations for part time employees or joiners during the annual leave year.

In summary:

• Full time employees and workers must receive the statutory 5.6 weeks paid annual leave per annum.

• Bank holidays can be included within the statutory allowance of 5.6 week per year.

• There is no statutory requirement to pay or offer leave on bank holidays.

• Part-time employees must be treated no less favourably than full-time. So, if you pay full-time employees for bank holidays in addition to the statutory minimum, you must ensure the rest of your workforce receives the same entitlement, regardless of whether they would be working the bank holiday days or not.

For more information on calculating bank holiday entitlement for part-time workers, watch our YouTube video or contact us for support with your calculations.

Frequently Asked Questions:

1. What is the UK statutory annual leave entitlement for full-time and part-time workers?

Answer: All workers in the UK, including full-time, part-time, zero-hours, agency, and casual workers, are legally entitled to 5.6 weeks paid annual leave per year, as set out in the Working Time Regulations 1998

• For full-time employees, typically working a five-day week, this equates to 28 days’ paid leave

• Part-time workers receive a pro-rata entitlement, based on the number of days or hours they work - for instance, someone working 3 days per week would receive 3 × 5.6 = 16.8 days of annual leave

2. Do UK employees have a statutory right to paid bank holidays?

Answer: No, there is no automatic legal right to paid time off for bank or public holidays. Whether these days are paid or not, and whether they are included in, or in addition to the standard 5.6 weeks depends entirely on your employment contracts and annual leave policy.

• If a contract states, "annual leave includes bank holidays", those days are taken out of the statutory leave entitlement.

• If a contract specifies "plus bank holidays", those days are additional to the 5.6 weeks

• For part-time workers, fairness is crucial. If you close your business on a bank holiday but a part-time employee wouldn't normally work that day, you must still ensure they’re not disadvantaged compared to full-time colleagues, e.g. they could take equivalent leave later or receive pro-rata bank holiday compensation

3. Do employers have to give extra holiday for long service or as a benefit?

Answer: By law, employers only need to provide the statutory minimum of 5.6 weeks paid annual leave each year. However, many organisations choose to offer enhanced annual leave entitlement as a benefit, such as extra days after a certain length of service or “birthday leave.” If you decide to provide more than the statutory entitlement, make sure this is clearly stated in the employment contract or staff handbook. Offering enhanced leave can be a valuable way to improve employee retention, reward loyalty, and remain competitive in recruitment.

Check out other Blogs in our series:

What UK Small Businesses Need to Know to Stay Legally Compliant as They Grow

2025 Employment Law Changes: Are You Up To Date?

Managing High and Persistent Employee Absence: A Guide for Small Businesses

The content of our blogs is intended for general information only and does not replace legal or other professional advice.

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