In the lumi reward benchmark, UK employers give a median 24 days' annual leave excluding bank holidays, with a 25th percentile of 22 days and a 75th percentile of 26 days (n = 260, 2026 H1).
Key findings
- The median annual leave allowance is 24 days, excluding bank holidays. The 25th percentile is 22 days and the 75th percentile is 26 days (n = 260).
- Providing bank holidays in addition to annual leave is the common approach, at 39.7%. Including them within the allowance is an alternative, at 38.8%, and 21.5% use a mix of both (n = 214).
- 49.8% let employees buy annual leave (38.1% + 11.7%) (n = 257). Of those answering the follow-up, 93.1% set the typical maximum purchase at 1–5 days a year (n = 131).
- 76.9% allow unused leave to be carried over (47.4% + 29.5%). Limited carry-over in specific circumstances is the common answer (n = 251).
- 44.1% provide additional annual leave based on length of service (n = 256). Offering unlimited or uncapped leave is rare, at 3.4% for some roles and 1.9% for all employees: 5.3% in total (3.4% + 1.9%) (n = 266).
- For irregular-hours and part-year workers, 53.0% accrue holiday pay and pay it when leave is taken, using 52-week average pay. Rolled-up holiday pay is an alternative, at 36.5% (n = 219).
- 74.0% say they keep annual-leave and holiday-pay records that meet the Working Time Regulations, including accrual records for irregular-hours and part-year workers (n = 265).
About the data
This paper reports how UK employers answered lumi's questions on annual leave and holiday pay. The lumi reward benchmark covers 269 UK organisations across 14 sectors and five size bands. Data was collected in the 2026 H1 collection window. Each figure gives its base (n): the number of organisations that answered that question. Percentages are rounded to one decimal place, so a distribution can add up to 100.1%. Figures here are national. Sector and size comparisons are available to lumi members. See how lumi works for the method.
The legal context
Statutory annual leave is 5.6 weeks. The contractual allowances reported in this paper are set by each employer.
Several practices in this paper are not set by statute: adding leave for length of service, letting employees buy leave, discretionary days off, leave donation, unlimited leave and the premium paid for bank holiday working.
How many days' annual leave do UK employers give?
The benchmark asked: How many days of annual leave do employees typically receive, excluding bank holidays? The median answer is 24 days (n = 260). The 25th percentile is 22 days and the 75th percentile is 26 days. Answers range from 20 to 35 days.
The basis matters. The question excludes bank holidays, but the next section shows that 38.8% of organisations include bank holidays within the annual leave allowance itself. A comparison holds only when both figures are counted the same way.
The question also asks what employees typically receive, and that figure can vary with service. Asked Is additional annual leave provided based on length of service?, 55.9% answered "No", the common answer, and 44.1% answered "Yes", an alternative (n = 256). Where service-related leave applies, the typical figure may describe a starting point rather than what a long-serving employee holds.
Asked Do you offer unlimited or uncapped annual leave for any population?, 94.7% answered "No", the common answer (n = 266). "Yes — some roles" (3.4%) and "Yes — all employees" (1.9%) are both rare. Together, 5.3% offer unlimited or uncapped leave to at least some of their workforce (3.4% + 1.9%).
Some organisations add named days outside the main allowance. The benchmark asked: Which additional discretionary days off do you offer? This was a multi-select question, so each figure is the share of organisations choosing that option (n = 265).
| Answer | % of organisations |
|---|---|
| None | 75.8% |
| Life-event days | 12.5% |
| Birthday leave | 9.1% |
| Wellbeing or duvet days | 5.3% |
75.8% answered "None". Where these days are offered, they sit outside the core allowance and signal which occasions an organisation chooses to mark.
How do UK employers treat bank holidays?
The benchmark asked: How are UK bank holidays treated for most employees? (n = 214)
- "Provided in addition to annual leave": 39.7% (common)
- "Included within the annual leave allowance": 38.8% (alternative)
- "A mix of both, depending on role or contract": 21.5% (alternative)
None of the three answers is rare. The mixed answer describes treatment that depends on role or contract, for example where office staff and shift or site workers are on different terms.
Asked Can employees swap UK bank holidays for alternative days?, 52.4% answered "Yes", the common answer, and 47.6% answered "No", an alternative (n = 254). A swap policy gives someone who would prefer a different day, for reasons of faith, family or work pattern, a route to take it.
Organisations that operate on bank holidays also decide how to pay for that work. The benchmark asked: What premium is normally paid for working a UK bank holiday? "Not applicable" answers are excluded from this base (n = 251).
| Answer | % of organisations |
|---|---|
| Time-and-a-half | 40.6% |
| Double time | 24.3% |
| No premium | 17.9% |
| Day off in lieu | 17.1% |
Time-and-a-half is the common answer. Double time is an alternative. "No premium" and "Day off in lieu" are both rare. Taken together, 64.9% pay an enhanced cash rate (40.6% + 24.3%). The choice between cash and time sets the cost of bank holiday cover and decides whether the premium is felt in pay or in rest.
Can employees buy or sell annual leave?
The benchmark asked: Can employees buy or sell annual leave? (n = 257)
| Answer | % of organisations |
|---|---|
| No | 48.2% |
| Yes - buy only | 38.1% |
| Yes - both buy and sell options are available | 11.7% |
| Yes - sell only | 1.9% |
"No" is the common answer. "Yes - buy only" is an alternative. The two answers that include selling are both rare. Adding the options that allow purchase, 49.8% let employees buy leave (38.1% + 11.7%). Adding the options that allow sale, 13.6% let employees sell leave (11.7% + 1.9%).
The benchmark also asked: What is the maximum additional leave that can typically be purchased per year? "Not applicable" answers are excluded from this base; 138 organisations answered "Not applicable" (n = 131). "1–5 days" is the common answer, at 93.1%. "6–10 days" (5.3%) and "11+ days" (1.5%) are both rare. For the 93.1%, purchase is a top-up of up to five days to the core allowance rather than a substantial extension of it.
Can unused annual leave be carried over?
The benchmark asked: Can unused annual leave be carried over into the next leave year? (n = 251)
- "Yes - limited carry-over in specific circumstances": 47.4% (common)
- "Yes - standard carry-over applies": 29.5% (alternative)
- "No - unused leave is forfeited": 23.1% (alternative)
Adding the two "Yes" answers, 76.9% allow some carry-over (47.4% + 29.5%). The common answer ties carry-over to specific circumstances. That keeps an expectation that leave is used within the year while leaving room for exceptions. Standard carry-over gives the employee a routine choice. Forfeiture is an alternative, not a rare position, and it stops untaken balances building up from one year to the next.
The benchmark asked: Are employees required to take annual leave during set shutdown periods? (n = 262) "No" is the common answer, at 82.4%. "Yes - mandatory shutdown periods apply" (11.8%) and "Yes - in some parts of the organisation" (5.7%) are both rare. Where a shutdown applies, the employer fixes when part of the allowance is used.
The benchmark also asked: Can employees donate unused annual leave to colleagues? (n = 266) "No" is the common answer, at 95.1%. "Yes — formal scheme" is rare, at 4.9%.
How is holiday pay calculated for irregular-hours workers?
The benchmark asked: How is holiday pay calculated for irregular-hours and part-year workers? (n = 219)
- "Accrued and paid when taken (52-week average pay)": 53.0% (common)
- "Paid rolled-up (12.07% on each payslip)": 36.5% (alternative)
- "Other": 10.5% (rare)
The two main methods pay at different moments. Under accrual, holiday pay builds up and is paid when the worker takes time off, based on average pay over 52 weeks. Under rolled-up pay, an amount is added to each payslip, so the worker receives the pay before any leave is taken. Accrual needs a running record for each worker. Rolled-up pay is simpler to run each pay period but separates the payment from the time off.
The benchmark asked: Are allowances included in holiday pay calculations where relevant? (n = 257) "Some" is the common answer, at 68.1%. "None" (17.1%) and "All" (14.8%) are both rare. For organisations answering "Some", the working question is which allowances count as part of normal pay during leave.
Finally, the benchmark asked: Do you keep annual-leave and holiday-pay records that meet the Working Time Regulations, including accrual records for irregular-hours and part-year workers? (n = 265) "Yes" is the common answer, at 74.0%. "No" is an alternative, at 26.0%.
The question joins two conditions: records that meet the Working Time Regulations, and accrual records for irregular-hours and part-year workers. A "No" may reflect either part, or an organisation with no such workers. The figure is organisations' own assessment against the standard the question names.
What the data means for reward decisions
The benchmark describes what UK employers do, not what any organisation ought to do. Prevalence counts how often an answer was chosen; it does not rank the answers. Each choice below has costs and benefits that depend on the workforce, the operating pattern and the budget.
The allowance and service-related leave. A flat allowance is simple to explain and administer, and everyone in a role holds the same entitlement. Service-related leave rewards tenure, but colleagues doing the same work can hold different entitlements. A reward lead might ask: is the allowance meant to attract people at the start, or to hold them with a step up for service? Is the advertised figure stated on the same basis as the benchmark, excluding bank holidays?
Where bank holidays sit. Including bank holidays within the allowance puts the whole entitlement in one number, which can suit workers whose rota covers bank holidays. Providing them in addition keeps the two entitlements distinct and relies on premiums, time off in lieu or swaps where people work those days. How do the swap policy, the premium and the treatment of bank holidays fit together?
Buying and selling. Buying trades pay for time; selling trades time for pay. Purchase schemes add absence to cover and administration to run. What cap fits the operating model? How does purchased leave interact with carry-over? Where does any selling option sit relative to the statutory 5.6 weeks?
Carry-over and forfeiture. Carry-over gives flexibility across years but creates balances that roll forward and must be tracked. Forfeiture encourages leave to be used within the year, at the cost of flexibility for employees whose plans change. Which circumstances trigger limited carry-over, who approves it, and how large can a carried balance become?
Shutdowns, donation and unlimited leave. Mandatory shutdowns give operational certainty and remove some choice over timing. Leave donation and unlimited leave are both rare. An uncapped policy removes the fixed number but leaves open how much leave people take and how that is tracked. What would an uncapped policy be meant to signal, and how would the organisation know people were resting?
Holiday pay method and records. Accrual links payment to time off. Rolled-up pay is simpler per payslip but separates the two. Under either method, the treatment of allowances decides what counts as normal pay during leave. Which worker groups sit under each method? Which allowances count, and why? Could the organisation show each worker's accrual and payment history if asked?
Frequently asked questions
How many days' annual leave do UK employers give in 2026? In the lumi reward benchmark, the median allowance is 24 days excluding bank holidays (n = 260, 2026 H1). The 25th percentile is 22 days and the 75th percentile is 26 days, with answers ranging from 20 to 35 days. Statutory annual leave is 5.6 weeks; the allowances reported here are contractual.
What percentage of UK employers let employees buy annual leave? In the lumi reward benchmark, 49.8% of UK employers let employees buy annual leave (38.1% + 11.7%) (n = 257). A further 13.6% allow selling (11.7% + 1.9%), and 48.2% offer neither. Of those answering the follow-up, 93.1% cap the typical purchase at 1–5 days a year (n = 131).
Do UK employers include bank holidays in the annual leave allowance? In the lumi reward benchmark, 38.8% include bank holidays within the annual leave allowance (n = 214). Providing them in addition is the common approach, at 39.7%, and 21.5% use a mix depending on role or contract. The 24-day median excludes bank holidays, so a comparison holds only when both are counted the same way.
Can employees carry unused annual leave into the next leave year? In the lumi reward benchmark, 76.9% of UK employers allow some carry-over (47.4% + 29.5%) (n = 251). Limited carry-over in specific circumstances is the common answer, at 47.4%, while 23.1% forfeit unused leave.
How do UK employers calculate holiday pay for irregular-hours workers? In the lumi reward benchmark, 53.0% accrue holiday pay and pay it when leave is taken, using 52-week average pay (n = 219). Rolled-up pay of 12.07% on each payslip is the alternative, at 36.5%, and 10.5% use another method. 74.0% say their records meet the Working Time Regulations, including accrual records for these workers (n = 265).
Do UK employers offer unlimited annual leave? In the lumi reward benchmark, 5.3% offer unlimited or uncapped annual leave to at least some of their workforce (3.4% + 1.9%) (n = 266), and 94.7% do not. Extra named days are also limited: "None" is the answer chosen most often, at 75.8%, and life-event days is the most chosen of the named days, at 12.5% (n = 265).
Notes
- Base, "Not applicable" handling and rounding are as described in "About the data". "Not applicable" answers sit inside the base unless a question is named below.
- Two questions exclude "Not applicable" from the base: What is the maximum additional leave that can typically be purchased per year? (n = 131; 138 organisations answered "Not applicable") and What premium is normally paid for working a UK bank holiday? (n = 251; 17 organisations answered "Not applicable").
- Combined figures are the sum of the listed percentages for the options named, with the parts shown each time.
- Which additional discretionary days off do you offer? is multi-select. Each percentage is the share of the base choosing that option; organisations could choose more than one.
Data appendix
Every question on this page, with its base and full distribution, as a spreadsheet: download the CSV.
All national figures used in this paper, as recorded in the lumi reward benchmark (collection window 2026 H1).
How many days of annual leave do employees typically receive, excluding bank holidays?
Base: 260 organisations
Median 24 · 25th percentile 22 · 75th percentile 26 · range 20 to 35 days
How are UK bank holidays treated for most employees?
Base: 214 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Provided in addition to annual leave | 39.7% | 85 | common |
| Included within the annual leave allowance | 38.8% | 83 | alternative |
| A mix of both, depending on role or contract | 21.5% | 46 | alternative |
Can employees buy or sell annual leave?
Base: 257 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 48.2% | 124 | common |
| Yes - buy only | 38.1% | 98 | alternative |
| Yes - both buy and sell options are available | 11.7% | 30 | rare |
| Yes - sell only | 1.9% | 5 | rare |
Is additional annual leave provided based on length of service?
Base: 256 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 55.9% | 143 | common |
| Yes | 44.1% | 113 | alternative |
Can unused annual leave be carried over into the next leave year?
Base: 251 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Yes - limited carry-over in specific circumstances | 47.4% | 119 | common |
| Yes - standard carry-over applies | 29.5% | 74 | alternative |
| No - unused leave is forfeited | 23.1% | 58 | alternative |
Are employees required to take annual leave during set shutdown periods?
Base: 262 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 82.4% | 216 | common |
| Yes - mandatory shutdown periods apply | 11.8% | 31 | rare |
| Yes - in some parts of the organisation | 5.7% | 15 | rare |
Can employees swap UK bank holidays for alternative days?
Base: 254 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Yes | 52.4% | 133 | common |
| No | 47.6% | 121 | alternative |
What is the maximum additional leave that can typically be purchased per year?
Base: 131 organisations · "Not applicable" excluded from base
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| 1–5 days | 93.1% | 122 | common |
| 6–10 days | 5.3% | 7 | rare |
| 11+ days | 1.5% | 2 | rare |
How is holiday pay calculated for irregular-hours and part-year workers?
Base: 219 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Accrued and paid when taken (52-week average pay) | 53.0% | 116 | common |
| Paid rolled-up (12.07% on each payslip) | 36.5% | 80 | alternative |
| Other | 10.5% | 23 | rare |
Do you keep annual-leave and holiday-pay records that meet the Working Time Regulations, including accrual records for irregular-hours and part-year workers?
Base: 265 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Yes | 74.0% | 196 | common |
| No | 26.0% | 69 | alternative |
Do you offer unlimited or uncapped annual leave for any population?
Base: 266 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 94.7% | 252 | common |
| Yes — some roles | 3.4% | 9 | rare |
| Yes — all employees | 1.9% | 5 | rare |
Which additional discretionary days off do you offer?
Base: 265 organisations · more than one answer allowed
| Answer | % of base | Organisations |
|---|---|---|
| None | 75.8% | 201 |
| Life-event days | 12.5% | 33 |
| Birthday leave | 9.1% | 24 |
| Wellbeing or duvet days | 5.3% | 14 |
Can employees donate unused annual leave to colleagues?
Base: 266 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 95.1% | 253 | common |
| Yes — formal scheme | 4.9% | 13 | rare |
What premium is normally paid for working a UK bank holiday?
Base: 251 organisations · "Not applicable" excluded from base
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Time-and-a-half | 40.6% | 102 | common |
| Double time | 24.3% | 61 | alternative |
| No premium | 17.9% | 45 | rare |
| Day off in lieu | 17.1% | 43 | rare |
Are allowances included in holiday pay calculations where relevant?
Base: 257 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Some | 68.1% | 175 | common |
| None | 17.1% | 44 | rare |
| All | 14.8% | 38 | rare |
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David Whitfield, Annual leave and holiday pay: UK benchmark 2026. lumi, collection window 2026 H1. https://lumihr.co.uk/research/annual-leave-holiday-2026Last reviewed 20 September 2026 · Figures describe organisations in the lumi reward benchmark, not a random sample of UK employers. Every figure on this page states the question asked and the number of organisations that answered it.