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Important News About Holiday Pay

Holiday Pay

Up to today employers were not permitted to “roll up” holiday pay, ie tell you that what you will be paid “includes” holiday pay.

That changes as from today and as a result it is very important that every freelancer makes it very clear when they are agreeing their rate/deal, that the sum agreed does NOT include holiday pay (ie that you expect that, when you receive your contract, the holiday will be added on top of the sum you agreed to work for when you did your deal).

Previously there was some confusion in this area with some employers claiming that the sum agreed included holiday pay when freelancers thought it would be added on top. Now there should be no confusion - as long as you make it clear at the moment you agree the deal that your agreed amount does not include the holiday pay.

So that everyone is sure what was agreed, you should ask for what you have agreed to be put in writing (an email will do) which states the rate and that you will be paid your holiday pay as well, on top (assuming you don’t take the time off during your contract).

The rate for holiday pay is confirmed to be 12.07%.

Again there has been some confusion as to the correct rate of pay to be added to your basic rate for holiday pay, with most employers (and PACT) saying it should be 10.77% and a few (and BECTU) saying it should be 12.07%.

Today it has been officially confirmed to be 12.07%, ie that if holiday pay is paid at the end of your contract, or if it is being paid to you on a rolled up basis, it should be an amount which is 12.07% of what you have earned/will earn.

You don’t need to get the employer to confirm this rate when you do the deal (although it would be useful to do so) but make sure that this is the rate they use when they do pay any outstanding holiday entitlement when you finish your contract.

If you want to calculate what you should be paid, based on your existing rate and length of booking (this can also be used by employers to calculate the holiday pay owed to a freelancer), here is a holiday pay calculator for 2024.

1,815 views2 comments


Unknown member
Apr 26

So does that mean the rates on the rate card are minus holiday pay, so that 12.07% should be added on top? And how does that effect Self Employed and Ltd Company contracts, because the Government clause on holiday pay says "except those who are genuinely self-employed"?


Unknown member
Apr 26

Is this only for new deal memos or does it include ones with an earlier start date?

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