Pro Rata Holiday Calculator
How to Calculate Holidays Pro Rata: A Complete Guide
Understanding holiday entitlement is crucial for both employers and employees, especially when working part-time. "Pro rata" is a Latin term meaning "in proportion." In the context of employment, it means that part-time staff should receive the same holiday benefits as full-time staff, but adjusted to reflect the number of hours they actually work.
The Basic Pro Rata Formula
The standard way to calculate pro rata holiday entitlement is to use the ratio of part-time hours against full-time hours. Here is the mathematical formula:
Example Calculation
Let's look at a realistic scenario to see how this works in practice:
- Full-time employee: Works 40 hours per week and receives 28 days of holiday.
- Part-time employee: Works 20 hours per week.
To find the part-time entitlement: (20 / 40) = 0.5. Then, 0.5 × 28 days = 14 days of holiday per year.
Why Calculating in Hours Can Be Better
While many companies calculate leave in days, it is often more accurate to calculate it in hours, especially if a part-time employee works different lengths of shifts on different days (e.g., 8 hours on Monday but 4 hours on Friday).
To calculate in hours, simply multiply the weekly hours worked by the statutory week entitlement (e.g., 5.6 weeks in the UK). A person working 20 hours a week would get 112 hours of holiday per year (20 x 5.6).
Statutory Minimums
In many regions, there is a legal minimum holiday requirement. For example, in the UK, almost all workers are entitled to at least 5.6 weeks of paid holiday per year. This is capped at 28 days for those working 5 days a week. When calculating pro rata, ensure the final result never falls below the legal minimum for the specific region.
Bank Holidays and Pro Rata
A common mistake is forgetting how bank holidays affect part-time workers. If a business closes on bank holidays and the full-time staff get those days off as part of their entitlement, part-time staff are also entitled to a pro rata share of those bank holidays, regardless of whether they were scheduled to work on the day the bank holiday falls.
What Happens if I Start Mid-Year?
If you start a job halfway through the "leave year" (the 12-month period the company uses to track holiday), your entitlement is pro-rated again based on the remaining months. For example, if you are entitled to 20 days a year but start exactly halfway through, you will only have 10 days to use for the remainder of that year.