Reviewed by Mustafa Bilgic
Founder, WebCalculator
Tax and NI impact uses 2026/27 HMRC rates. The 260-day deduction method is shown — your employer may calculate differently. Not financial advice.
Use the unpaid leave salary calculator to see exactly how much taking unpaid days off will cost you in 2026/27. Enter your annual salary and the number of unpaid days to see the gross deduction, tax and NI saving, and the real net impact on your take-home pay.
Gross deduction vs actual net cost
Most employers use the 260 working-day method: divide your annual salary by 260 (52 weeks × 5 days) to get a daily rate, then multiply by the number of unpaid days. On a £35,000 salary that is £134.62 per day. Five unpaid days would be a gross deduction of £673.08.
However, your actual loss is less because you also pay less tax and NI. A basic-rate taxpayer on £35,000 saves roughly 28% in tax and NI on the deducted amount, so five days costs about £484.62 net rather than £673.08 gross.
| Method | Divisor | Daily rate (£35k) |
|---|---|---|
| 260 working days | 260 | £134.62 |
| 365 calendar days | 365 | £95.89 |
| Actual days in month | Varies | Varies |
Check your employment contract or HR handbook for which method your employer uses. The 260-day method is most common for salaried staff.
The most common method is to divide your annual salary by 260 working days and multiply by the number of unpaid days. For a £35,000 salary that is £134.62 per day gross. Your employer may use a different method such as calendar days (divide by 365) or actual working days in the month.
Yes. Because your gross pay is lower in the months you take unpaid leave, you pay less Income Tax and National Insurance. A basic-rate taxpayer saves roughly 28% of the gross deduction through lower tax and NI, so the net cost is less than the headline figure.
Usually yes. If you are in a workplace pension based on qualifying earnings, your contributions and your employer's contributions drop in line with the reduced salary. However, the specifics depend on your pension scheme rules — check with your HR department.
There is no statutory right to unpaid leave for most employees beyond specific situations like parental leave (up to 18 weeks per child) or time off for dependants. Any other unpaid leave is at your employer's discretion and should be agreed in writing.
Short periods of unpaid leave usually do not reduce your holiday entitlement. However, extended unpaid leave may do so, depending on your contract. Statutory parental leave does not reduce holiday entitlement.
Holiday pay is fully taxed, so using it costs nothing extra beyond losing the days. Unpaid leave costs you the net daily rate (gross minus tax savings). For a basic-rate taxpayer on £35,000, each unpaid day costs about £96.92 net rather than the £134.62 gross deduction.