Preparing for 2026: Calculating staff holiday allowances

As 2025 draws to a close, HR teams and business leaders are already turning their attention to the year ahead. One of the most important tasks in preparing for 2026 is ensuring that every staff member’s holiday entitlement is calculated correctly. Annual leave is not just a legal requirement—it’s a cornerstone of employee wellbeing, productivity, and retention. Missteps in calculating allowances can lead to disputes, disengagement, and even compliance issues. Fortunately, the WhosOff Holiday Calculator makes this process straightforward, accurate, and adaptable to part-time workers.

Holiday entitlement is more than a number on paper. It represents:

• Legal compliance: In the UK, the statutory minimum is 5.6 weeks of paid holiday per year. For a full‑time employee working five days a week, this equates to 28 days (which may include bank holidays).
• Fairness and transparency: Staff expect their entitlement to be calculated consistently. Errors can quickly erode trust.
• Operational planning: Knowing how much leave each employee can take helps managers plan workloads, avoid clashes, and maintain service levels.
• Employee wellbeing: Encouraging staff to take their full entitlement reduces burnout and increases engagement.

For most UK businesses, the holiday year runs from 1 January 2026 to 31 December 2026. Here are the key rules to keep in mind:

• Full‑time staff: Entitled to 28 days, which may include bank holidays.
• Part‑time staff: Entitled to the same 5.6 weeks, but calculated on a pro‑rata basis. For example, someone working three days per week receives 16.8 days, which should be rounded up to 17.
• Mid‑year starters or leavers: Their entitlement is calculated based on the proportion of the year they work. For instance, an employee joining on 1 July 2026 would be entitled to half of the annual allowance.

The WhosOff Holiday Calculator is designed to simplify these calculations. Managers input details such as:

• Hours or days worked per week
• Annual entitlement for a full‑time employee
• Start or end dates if employment begins or ends mid‑year

The calculator then provides an instant entitlement figure. This ensures accuracy and saves time compared to manual calculations.

For any of the following scenarios, the company may choose to:

• include bank and public holidays as part of the statutory entitlement
• round up the holiday entitlement, but not round down
• provide holiday pay during the statutory leave
• provide more paid holiday, depending on the individual's contract, referred to as 'contractual leave entitlement'

1. Full‑time employee: Works five days per week. Entitlement = 28 days.
2. Part‑time employee (3 days/week): Entitlement = 16.8 days, rounded up to 17.
3. Mid‑year starter (joining 1 July 2026, 5 days/week): Entitlement = 14 days.

By running these scenarios through the calculator, managers can quickly confirm allowances and communicate them clearly to staff.

Even with a calculator, managers should be aware of common mistakes:

• Rounding down entitlements: UK law requires rounding up to the nearest day.
• Forgetting bank holidays: Decide whether bank holidays are included in the 28 days or offered in addition.
• Not updating contracts: Ensure employment contracts reflect entitlement policies.
• Ignoring carry‑over rules: Some, or all, companies allow unused leave to roll into the next year. Policies must be clear and consistent.

Calculating entitlement is only the first step. Managing leave effectively requires a system that tracks requests, approvals, and balances. WhosOff’s platform offers:

• Online leave requests and approvals: Eliminating paper forms and email chains.
• Conflict alerts: Preventing too many staff being off at the same time.
• Flexible policies: Tailoring rules for carry‑over or special arrangements.

This ensures that entitlement figures translate into smooth operations throughout the year.

Here are practical steps to take before the new year begins:

1. Run entitlement calculations for all staff using the WhosOff Holiday Calculator.
2. Communicate allowances clearly to employees, ideally in writing.
3. Update HR systems with 2026 balances.
4. Review policies on bank holidays, carry‑over, and part‑time arrangements.
5. Train managers on approving and tracking leave requests consistently.

By starting early, businesses can avoid confusion and ensure staff feel confident about their entitlement.

Holiday entitlement is often seen as an administrative detail, but it has strategic value:

• Boosting retention: Transparent and fair leave policies make employees feel valued.
• Supporting diversity: Flexible policies accommodate different working patterns, including part‑time and job‑share roles.
• Enhancing productivity: Planned leave reduces last‑minute absences and ensures coverage during busy periods.

In short, holiday planning is not just about compliance—it’s about building a resilient, motivated workforce, who feel valued.

As 2026 approaches, calculating staff holiday allowances should be at the top of every HR manager’s checklist. With statutory rules, part‑time adjustments, and mid‑year scenarios to consider, accuracy is essential. The WhosOff Holiday Calculator provides a quick, reliable way to determine entitlements, while the wider WhosOff platform ensures those allowances are managed effectively throughout the year.

By preparing now, businesses can enter 2026 with clarity, confidence, and a workforce that knows their holiday entitlement is fair and secure. After all, when staff feel supported in taking time off, they return more engaged, productive, and ready to contribute to the company’s success.

Photo by Simon Berger of Pexels.com