Reviewed by Mustafa Bilgic
Founder, WebCalculator · Last updated 26 July 2026
Holiday pay accrual and NLW rates from GOV.UK. Tax figures use 2026/27 HMRC rates. Estimates only — not financial advice.
On a zero hours contract your pay varies week to week, but your tax obligations and holiday rights do not. Enter your hourly rate and average weekly hours below to see your estimated weekly, monthly and annual pay — including holiday pay accrual at 12.07% — and your take-home after Income Tax and National Insurance for 2026/27.
Hourly rate and average hours
Zero-hours workers have the same tax and employment rights as regular employees — including the National Living Wage (£12.71/hr for 21+, 2026/27) and 5.6 weeks of paid annual leave. The main difference is that your hours are not guaranteed, so your income varies.
The 12.07% figure comes from dividing the 5.6 weeks of statutory holiday by the 46.4 remaining working weeks (52 - 5.6 = 46.4). Many zero-hours employers add this as a percentage on top of your hourly rate on each payslip ("rolled-up holiday pay"). Others accrue it and pay when you take time off.
For a full-time hours breakdown, try the hourly wage calculator or the holiday pay calculator.
Zero-hours workers are entitled to 5.6 weeks of paid holiday per year. Holiday pay accrues at 12.07% of hours worked (5.6 weeks divided by 46.4 working weeks). Many employers add this as a top-up on each payslip rather than paying it when holiday is taken.
Yes. Zero-hours workers pay Income Tax and National Insurance through PAYE just like any other employee. If your annualised earnings are below your Personal Allowance of £12,570 you pay no Income Tax, but NI starts at £12,570 annualised.
The National Living Wage of £12.71 per hour applies to all workers aged 21 and over, including those on zero-hours contracts. Source: gov.uk.
If you have multiple jobs or irregular hours, HMRC may apply an emergency tax code and overtax you. At the end of the tax year you can claim a refund through your Personal Tax Account or by contacting HMRC directly.
You may qualify for Statutory Sick Pay if your average weekly earnings are at least £123 per week (2026/27 LEL). The key test is average earnings over the 8 weeks before you fell ill, not whether your contract guarantees hours.
Multiply your average weekly hours by your hourly rate and by 52. If you typically work 20 hours a week at £12.71 per hour, your estimated annual gross is £13,218. The calculator above lets you adjust the average hours to see different scenarios.