Holiday Pay

Do I get Holiday Pay as an Umbrella Company Employee?

The answer is yes, as an umbrella company employee you are entitled to holiday pay.

Umbrella companies have legal obligations as an employer, one of which is to ensure that you are paid when you take time off. You will be paid holiday pay as part of the PAYE payroll process.

All PAYE employees are entitled to 5.6 weeks paid holiday each year

This is the equivalent of 28 paid holiday days for umbrella contractors every year.

Check with the umbrella company as to whether or not bank and public holidays are included within these 28 days.

Part time employees or those who have only worked for part of year have their holiday allowance calculated on a pro rata basis.

How is my Holiday Pay Calculated?

By law your holiday pay contributions must be itemised on each payslip. Read more about understanding your payslip.

Holiday Pay is calculated as follows:

Weekly Invoices: 28 days per year x 7 hours per day at £7.50 per hour (NMW) / 52 weeks = £28.27 holiday pay.

Monthly Invoices: 28 days per year x 7 hours per day at £7.50 per hour (NMW) / 12 months = £122.50 holiday pay.

Based on these calculations, you will be paid £52.50 per holiday day, providing the funds have been accrued.

Unused Holiday pay

Check your umbrella companies policies regarding unused holiday pay. It should be refunded to you either when you leave or at the end of each financial year.

Talk to your umbrella company support team if you have any questions about how your holiday pay is calculated.

Read the official Government Legislation for Holiday Pay.

Read More

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Holiday Pay

Do I get Holiday Pay as an Umbrella Company Employee?

The answer is yes, as an umbrella company employee you are entitled to holiday pay.

Umbrella companies have legal obligations as an employer, one of which is to ensure that you are paid when you take time off. You will be paid holiday pay as part of the PAYE payroll process.

All PAYE employees are entitled to 5.6 weeks paid holiday each year

This is the equivalent of 28 paid holiday days for umbrella contractors every year.

Check with the umbrella company as to whether or not bank and public holidays are included within these 28 days.

Part time employees or those who have only worked for part of year have their holiday allowance calculated on a pro rata basis.

How is my Holiday Pay Calculated?

By law your holiday pay contributions must be itemised on each payslip. Read more about understanding your payslip.

Holiday Pay is calculated as follows:

Weekly Invoices: 28 days per year x 7 hours per day at £7.50 per hour (NMW) / 52 weeks = £28.27 holiday pay.

Monthly Invoices: 28 days per year x 7 hours per day at £7.50 per hour (NMW) / 12 months = £122.50 holiday pay.

Based on these calculations, you will be paid £52.50 per holiday day, providing the funds have been accrued.

Unused Holiday pay

Check your umbrella companies policies regarding unused holiday pay. It should be refunded to you either when you leave or at the end of each financial year.

Talk to your umbrella company support team if you have any questions about how your holiday pay is calculated.

Read the official Government Legislation for Holiday Pay.

Read More

The quickest way to get
the best take home pay

Stop losing your hard earned cash!

Fill in your details below and start saving now!

Your information is safe: Privacy Policy