Pro-rata holiday entitlement is an amount of holiday that’s in proportion to the holiday entitlement of a full-time employee.
The proportion of holiday will depend on how much an employee works, relative to a full-time employee. For example, if they work half as much, they are entitled to half as much holiday.
There’s two main reasons an employee might require a pro-rata holiday entitlement:
- they’re a part-time employee,
- they have joined your business part way through your holiday year.
How do you calculate pro-rata holiday entitlement for part-time employees?
To calculate pro-rata holiday entitlement for part-time employees, you’ll need to work out what proportion of a full-time working week they work, and multiply this by the amount of holiday a full-time employee is entitled to.
So, say your part-time employee works 3 days a week.
This is 3/5ths of a full 5-day working week. This means they’re entitled to 3/5ths as much holiday entitlement as a fulltime employee.
Assuming you offer the statutory minimum paid holiday to your staff (ie. 5.6 weeks, or 28 days) your part-time employee would be entitled to 3/5ths of 28, so 16.8 days.
While you can’t round down holiday entitlement, you may wish to round up to the closest full or half-day to make allocating the leave more straightforward. You don’t have to do this though.
If you offer the statutory minimum paid holiday, another easy way to calculate how much paid holiday part-time workers are entitled to is to multiply the number of days worked per week by 5.6. So for someone working a 3 day week the calculation would be 3 x 5.6 = 16.8 days.
If your full-time employees are entitled to more than the statutory minimum, you must ensure that your part-time employees receive a pro-rata equivalent of that amount.
For example, if your entitlement for full-time employees is 36 days, a part-time worker working 3 days a week would receive 3/5ths of 36 (3/5 x 33) = 21.6 days.
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Part-time employees working a different number of hours each day
If your part-time staff work a more irregular pattern, working more hours on some days than others, you should calculate their holiday entitlement in hours not days because otherwise the worker could choose to take all their holidays on the days when they work longer hours.
If you have an employee working 22 hours per week, and offer the statutory minimum holiday entitlement of 28 days, (5.6 weeks) the number of hours worked over 5.6 weeks, and therefore how much holiday they would be entitled to, is 123.2 hours (22 hours x 5.6), which you may wish to round up to 124 hours.
How do you calculate pro-rata holiday entitlement for employees starting part way through the year?
If you need to calculate holiday entitlement for an employee starting part way through your holiday year, you’ll need to work out what proportion of the year they will be working for you, and multiply this amount by the entitlement for a full-time employee.
Let’s assume you have an employee starting exactly ¼ of the way through your holiday year.
This means they’ll be entitled to ¾ of the full-time annual holiday entitlement.
Working with the statutory minimum of 28 days, this means they’ll be entitled to 21 days of holiday (28/4 =7, 7 x 3 =21) between the date they started working for you and the date your annual leave year resets.
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With HR software you can calculate pro-rata holiday entitlement in seconds.
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- Why you need an annual leave policy
- How to manage staff holidays
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