How is holiday pay worked out?

Pay during holidays is calculated in the same way as a normal week’s pay. This simple but important principle was established after many years of litigating by trade unions, up to the level of the European Court of Justice.

These cases have established that holiday pay must be comparable to the pay you receive when working. It must include any component of your normal wages that is linked to the performance of contractual duties. So, for example, it should include:

  • Results-based commission pay that would have been earned if you had not been on holiday;
  • Regular overtime pay, both guaranteed and non-guaranteed;
  • Travel-time payments;
  • Shift premiums;
  • Weekend premium payments; and
  • Anti-social hours payments.
Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.