Most employees can receive up to 4 normal working weeks of statutory annual leave per leave year. The applicable methods are four weeks after 1365 hours, one-third of a working week for each month with at least 117 hours, or 8% of hours worked, subject to the same four-week cap.
How annual leave entitlement works
Full-time, part-time, temporary and casual employees earn annual leave from the time they start work. A contract or workplace policy may give more leave than the statutory minimum, but it cannot replace the minimum with a less favourable entitlement.
A “working week” means the employee’s normal week, not automatically five days or 39 hours. Four working weeks for someone who normally works three days a week is normally 12 working days. For someone working five days, it is normally 20 working days.
The three statutory calculation methods
| Method | Result | When it matters |
|---|---|---|
| 1365-hour method | 4 normal working weeks | The employee works at least 1365 hours in the leave year, unless it is a year in which they change employment. |
| 117-hour month method | One-third of a working week for each qualifying calendar month | The employee works at least 117 hours in that month. |
| 8% method | 8% of hours worked | Useful for part-year, part-time or irregular work; capped at four working weeks. |
If more than one method applies, the employee receives the method producing the greater statutory entitlement. Leave already taken must then be deducted to find the remaining balance.
Worked example
Aoife normally works 37.5 hours over five days and records 1,500 hours in the leave year. The 1,365-hour method gives four normal weeks: 150 hours. At 7.5 hours per day, that is 20 working days. The 8% method would produce 120 hours, so the four-week result is greater.
The same entitlement should be expressed using the person’s own normal day or week. Converting hours into “days” using another employee’s schedule can create a misleading balance.
Taking leave, holiday pay and carry-over
Annual leave is paid time off. The timing is normally decided by the employer after considering work requirements and the employee’s need for rest and family responsibilities. Contractual rules may explain the leave year, booking process and ordinary carry-over.
Statutory leave generally should be taken rather than exchanged for cash while employment continues. Special carry-over protection applies where certified illness prevented an employee from taking statutory leave.
When employment ends
Payment in lieu of the outstanding statutory balance is permitted when employment terminates. A useful final-pay check starts with leave accrued to the termination date, subtracts leave already taken and values the remaining hours or days at the appropriate normal rate.
Notice, garden leave and an agreed termination date can affect the accrual period. Keep the written notice, leave record and final payslip together when checking the calculation.
Common calculation mistakes
- Assuming every employee automatically receives 20 days, regardless of their normal working week.
- Using only 8% when another applicable method gives a larger result.
- Counting public holidays as part of the statutory annual leave allowance.
- Ignoring leave that accrued during certified sick leave.
- Paying out the minimum leave while employment continues instead of allowing it to be taken.
Estimate your annual leave
Compare the statutory methods using your hours and normal working week.
Use the Annual Leave CalculatorFrequently asked questions
How much annual leave am I entitled to in Ireland?
Most employees are entitled to a maximum statutory amount of four of their normal working weeks per leave year. A contract may provide more.
What is the 8% rule for annual leave?
One statutory method gives leave equal to 8% of hours worked in the leave year, capped at four normal working weeks.
Are public holidays included in annual leave?
No. Statutory public holiday benefits are separate from statutory annual leave.
Does annual leave accrue during sick leave?
Statutory annual leave continues to accrue during certified sick leave.
Can my employer give more annual leave?
Yes. Additional contractual leave can be provided in written terms or workplace policy.
Can unused leave be paid instead of taken?
Payment in lieu of minimum statutory leave is generally permitted only when the employment relationship ends.
Official sources
Rules and thresholds can change. Check the source that applies to your circumstances before making an important decision.
Important: This guide provides general information for workers in Ireland. It does not replace your contract, payroll records, official guidance or advice on a disputed or unusual case.