Holiday pay

How is holiday pay calculated and paid?

Associates with a worker contract are entitled to holiday pay on top of qualifying fees. All fee types qualify for holiday pay apart from cancellation fees and pre-appointment training.

Holiday pay is calculated at 12.07% of qualifying fees paid in a period. For example, if you submit a claim for five days' work at the daily rate of £325, you’re entitled to holiday pay of £325 x 5 x 12.07% = £196.14. You will receive “rolled-up” holiday pay periodically, soon after you are paid your fees. It’s not connected to when you choose to take holiday. No further payments will be made at the time you take holidays.

The figure of 12.07% for holiday pay is derived from the minimum statutory allowance for workers of 5.6 weeks' paid holiday per year. Subtracting 5.6 weeks from 52 weeks gives 46.4 working weeks in a year. 5.6 weeks is the equivalent of 12.07% of the full number of working weeks in a year. This method of calculation is in line with changes to the Working Time Regulations introduced on 1 January 2024: Holiday pay and entitlement reforms from 1 January 2024 - GOV.UK.

Contractual holiday pay came into effect on 1 July 2025. The first payments were made in February 2026 (covering fees earned in the period 1 July to 31 December 2025). Holiday will be paid on a monthly basis in arrears during 2026. You will receive a remittance advice for each payment made.

Am I entitled to retrospective holiday pay?

Associates who held a recognised worker role on or after 1 January 2025 have been offered retrospective holiday pay at 12.07% on qualifying fees earned during the period 1 January 2023 to 30 June 2025. This position reflects our understanding of current legal requirements.

If you were eligible for holiday back pay, you should have received an email in 2025 with details and been asked to confirm you want to receive this. All associates who told us they wanted their historic payments have now been paid.

If you earned fees in the period 1 January 2023 to 30 June 2025 and you haven't yet responded to your historic holiday pay offer, please contact AWSqueries@gmc-uk.org by 30 April 2026. Associates who don't claim their historic holiday pay by that date will be assumed to have declined it. 

What is the legal situation around retrospective holiday pay?

Currently, the Deduction from Wages (Limitation) Regulations 2014 limit employers’ liability for retrospective holiday pay to a period of two years. But we're aware that there are ongoing challenges surrounding the legality of these Regulations. And their application to different types of claims for historic holiday pay entitlement.

We will continue to track legal developments. If there is a binding and final court decision which indicates we should offer holiday back pay over a longer period, we will do that.

Why aren’t you paying holiday back to the start of the contract?

Our offer is based on our understanding of current legal requirements and we have committed to continue to track legal developments in this area. An individual employment tribunal decision is not binding on others.

As a charity funded by registrant fees, we need to manage our funds carefully. The financial impact of moving almost 2,000 current associates to worker status is significant. It would not be responsible for us to pay more than we presently understand is legally required. Equally, we are committed to meeting our statutory obligations and will continue to review our position.