Important news, including about holiday pay.

April 1st 2024

Three pieces of news of importance to all freelancers:

1. The minimum wage rate has gone up.

From today, you should be earning at least £11.44 per hour if you are aged over 21 and £8.60 per hour if you are aged 18-20. These rates, and the holiday pay you should receive on top are listed on this table, You should never be paid less than the combined rates (min wage plus holiday pay) per hour.

2. Holiday pay.

Up to today employers were not permitted to “roll up” holiday pay, ie tell you that what you will be paid “includes” holiday pay.

That changes as from today and as a result it is very important that every freelancer makes it very clear when they are agreeing their rate/deal, that the sum agreed does NOT include holiday pay (ie that you expect that, when you receive your contract, the holiday will be added on top of the sum you agreed to work for when you did your deal).

Previously there was some confusion in this area with some employers claiming that the sum agreed included holiday pay when freelancers thought it would be added on top. Now there should be no confusion - as long as you make it clear at the moment you agree the deal that your agreed amount does not include the holiday pay.

So that everyone is sure what was agreed, you should ask for what you have agreed to be put in writing (an email will do) which states the rate and that you will be paid your holiday pay as well, on top (assuming you don’t take the time off during your contract).

3. The rate for holiday pay is confirmed to be 12.07%.

Again there has been some confusion as to the correct rate of pay to be added to your basic rate for holiday pay, with most employers (and PACT) saying it should be 10.77% and a few (and BECTU) saying it should be 12.07%.

Today it has been officially confirmed to be 12.07%, ie that if holiday pay is paid at the end of your contract, or if it is being paid to you on a rolled up basis, it should be an amount which is 12.07% of what you have earned/will earn.

You don’t need to get the employer to confirm this rate when you do the deal (although it would be useful to do so) but make sure that this is the rate they use when they do pay any outstanding holiday entitlement when you finish your contract.

If you want to calculate what you should be paid, based on your existing rate and length of booking (this can also be used by employers to calculate the holiday pay owed to a freelancer), here is a holiday pay calculator for 2024.