Hours worked per week: differences between government-calculated and RotaCloud-calculated holiday entitlements

Why the Government holiday entitlement calculator and RotaCloud calculate holiday entitlement differently based on ‘hours worked per week’

James Denham avatar
Written by James Denham
Updated over a week ago

This article is suitable for those using the ‘hours worked per week’ calculator.

Although you are free to use either method, please be assured that despite the fact that the government calculation is often higher our calculator is still accurate and meets legal requirements.

The Government calculator formula:

The government formula uses the legally required minimum holiday allowance of 28 days holiday including bank holidays.

Step one: 28 days x (Number of days worked in a week* / 5)

E.g. If a member of staff works 4 days it would be 28 x (4/5) = 22.4

*The maximum figure that can be used for ‘Number of days worked in a week’ is 5. Even if your employee works 6 days per week this figure would still be 5*

Step two: They then take this and pro-rata it against the month we are currently in

For example:

  • The leave year is the 01/01/2022 to the 01/01/2023

  • If the employee started on the 23/03/2022 it would be presumed they were working 10 months of the year.

  • If the employee started on 01/04/2022 it would be presumed they are working 9 months in a year.

  • If the employee started on the 30/04/2022 it would be presumed they are working 9 months in a year.

  • Therefore if a staff member started on the first day of the month (1st) or the last day (31st) the holiday given would still be the same holiday allowance!

Step three: The calculator then takes (The total annual allowance / 12) x the number of months they are working in the year.

Step four: All figures are then rounded to the nearest ½ day or full day

Step five: The average hours per day are then calculated using: (Hours per week / Number of days worked)

Step six: The Holiday allowance in days is then multiplied by the Average Hours per Day

The RotaCloud calculation formula

The RotaCloud formula is much simpler:

  1. ((full yearly allowance in hours) / (total days in year)) x days remaining in leave period from start date

  2. This is then rounded.

Example 1: if someone starts on the 22/03/2022 and they work 28 hours a week over 4 days a week and their leave year runs 01/01/2022 - 01/01/2023, you would enter a Fixed Allowance into the Employee Profile of 156.8 as your staff member works 28 hours over 4 days a week

To calculate this:

Step one: Annual leave for Full Time Employees x (Number of days worked in a week* / 5) e.g. if a member of staff works 4 days it would be 28 x (4/5) = 22.4 Days

*The maximum figure that can be used for ‘Number of days worked in a week’ is 5. Even if your employee works 6 days per week this figure would still be 5*

For greater detail on how to add a fixed allowance click the link to view our handy guide 'Managing Holiday Allowances'.

Step Two: Then calculate the average hours worked per week: (Total Hours per Week / Number of Days Worked per Week)

E.g. 28 hours over 4 days a week = 28 / 4 = 7 Hours

Step Three: Multiply the average hours worked per week by the Annual leave for Full Time Employees in days

E.g. 22.4 days x 7 hours = 156.8 Hours

The RotaCloud calculation formula with examples

  1. ((full yearly allowance in hours) / (total days in year)) x days remaining in leave period from start date

  2. This is then rounded.

Essentially differences arise as in the first year of employment the government calculates the holiday entitlement taking into account just the month someone starts in and not the exact date they start on.

We understand you may still want to use the government Holiday Allowance

To do this you need to edit your employee's 'Fixed Allowance' and ensure you removed the prorate feature on RotaCloud :

Step one: Set the 'Fixed Allowance'

  1. Using the dashboard select 'Company'

  2. On the drop down menu select 'Employees'

  3. Select the Employee you want to change the 'Fixed Allowance' for to open their Employee page

  4. On the Employee page scroll to the 'Fixed Allowance' and enter the holiday allowance you wish to use.

  5. Scroll to the bottom of the page and select 'Save'

Step two: Ensure RotaCloud isn't set to prorate allowance.

  1. To disable this, go to Settings (the cog icon on the blue navigation bar)

  2. Scroll down to the Leave header.

  3. Untick the box 'Prorate holiday allowances based on start date and final working date' and your staff's holiday allowance will no longer be adjusted.

Alternatively, you can remove the employee's start date or final working date from their Employee profile, to stop the prorate calculation changing the government allowance. (If you need to keep a record of a user's start date, then you can always copy and paste this into the Notes section of the employee's profile, for future reference).

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