Accountants Holiday Pay (Monthly) Calculator
Estimate an employee's monthly holiday pay provision, annual holiday pay cost and daily holiday pay rate from their fixed monthly salary.
Overview
Use this monthly holiday pay calculator to estimate the salary value of an employee's paid annual leave and the amount that may be allocated each month. Enter their gross monthly salary, paid holiday entitlement and normal working days per week.
How it works
The calculator multiplies monthly salary by 12 to estimate annual salary. It estimates annual working days as usual days per week multiplied by 52, then divides annual salary by those days to obtain a daily rate. That rate is multiplied by the annual holiday entitlement and divided by 12 to give a monthly holiday pay provision. This is a planning estimate for regular salaried pay, rather than a calculation of every payroll or legal entitlement.
How to use this calculator
- 1Enter the employee's regular gross monthly salary.
- 2Add the total number of paid holiday days available in the year.
- 3Enter the employee's usual working days per week.
- 4Review the estimated daily rate, annual provision and monthly provision.
Example Calculation
Gross monthly salary
$3,000
Annual holiday entitlement
28
Working days per week
5
Monthly holiday pay provision
$323.08
For a £3,000 monthly salary, 28 paid holiday days and a five-day week, the estimated daily holiday pay rate is £138.46. The annual provision is about £3,876.92, or £323.08 per month.
Frequently asked questions
What is a monthly holiday pay provision?
It is an estimated monthly allocation of the annual salary value associated with an employee's paid holiday entitlement. It can help with internal payroll costing and budgeting.
Does this calculator include bank holidays?
It includes them only if you add those days to the annual holiday entitlement entered. Check how bank holidays are treated in the employee's contract.
How is the daily holiday pay rate calculated?
The calculator divides annual salary by estimated annual working days, calculated as normal working days per week multiplied by 52.
Is holiday pay an extra cost for a salaried employee?
For an employee who continues to receive their normal salary while on leave, the figure is generally a way to allocate or analyse salary cost rather than an additional payment on top of that salary.
Can I use this for part-time employees?
Yes. Enter the employee's actual normal working days per week and their paid holiday entitlement in days.
Will this work for employees with overtime or commission?
It is best suited to fixed regular salaries. Variable pay and hours can require a different holiday pay calculation based on applicable rules and the employee's circumstances.
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Assumptions and warnings
Assumptions
- The employee receives a fixed regular monthly salary throughout the year.
- A year is treated as 52 weeks when estimating annual working days.
- The holiday provision is spread evenly across 12 months.
- The calculation uses the stated paid holiday days and does not determine statutory entitlement.
- Irregular payments, overtime, commission, bonuses and salary changes are excluded.
Warnings
- This calculator provides an estimate only and is not payroll, employment law or financial advice.
- Holiday pay requirements can differ for workers with variable hours or variable pay; check the applicable current rules and employment terms.