Holiday

Christmas and bank holiday pay 2026: the rules for employers

Last checked 29 October 2026 · 5 min read · By the EmployerCalculator team
Contents (5 sections)
  1. Christmas and New Year 2026 bank holidays
  2. How much notice for a Christmas shutdown?
  3. Do staff get extra pay for working Christmas Day or a bank holiday?
  4. Part-time workers and bank holidays
  5. Swapping a bank holiday and staff on leave
Quick answer

There is no legal right to have bank holidays off with pay, or to extra pay for working them. An employer can count bank holidays towards the 5.6 weeks' statutory paid holiday12, and any Christmas Day premium comes from the contract4. The Christmas 2026 bank holidays are Friday 25 December, Monday 28 December and Friday 1 January 2027, plus Monday 4 January in Scotland3. To close and make staff use holiday, Acas says to give at least twice as many days' notice as the days they must take: a shutdown from Thursday 24 December to Friday 1 January uses 4 days of holiday, so staff need telling by Wed 16 Dec 20261.

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Christmas and New Year 2026 bank holidays

Bank holidays, December 2026 and January 2027
Nation Bank holidays
England and Wales Fri 25 Dec 2026, Mon 28 Dec 2026, Fri 1 Jan 2027
Scotland Fri 25 Dec 2026, Mon 28 Dec 2026, Fri 1 Jan 2027, Mon 4 Jan 2027
Northern Ireland Fri 25 Dec 2026, Mon 28 Dec 2026, Fri 1 Jan 2027

Boxing Day falls on a Saturday, so the substitute bank holiday is Monday 28 December3.

How much notice for a Christmas shutdown?

An employer can decide to close over Christmas and tell workers to use some of their holiday, even if the business stayed open in previous years. Acas says to give at least twice as many calendar days' notice as the number of days of holiday they need to take, and to check contracts for any terms set by custom and practice first1.

Christmas 2026 shutdowns: holiday days used and the latest date to tell staff
Closure Holiday days used Notice (calendar days) Tell staff by
Thursday 24 December to Friday 1 January 4 8 Wed 16 Dec 2026
Tuesday 29 to Thursday 31 December 3 6 Wed 23 Dec 2026
Monday 21 December to Friday 1 January 7 14 Mon 7 Dec 2026
Thursday 24 December to Monday 4 January (Scotland) 4 8 Wed 16 Dec 2026

Holiday days are Monday to Friday working days in the closure that are not bank holidays, for a Monday to Friday worker. Bank holidays inside the closure are handled by your bank holiday policy.

Do staff get extra pay for working Christmas Day or a bank holiday?

Only if the contract says so. Whether someone has to work a bank holiday is up to the employer and the contract, and there is no automatic legal right to a higher rate14. What the law does require: the hourly pay must not fall below the minimum wage5, and a worker who works a bank holiday must still get their full 5.6 weeks of paid holiday in the year1. A worker cannot be paid in lieu of bank holidays, except for untaken holiday when they leave1.

Example: an 8-hour Christmas Day shift at the National Living Wage, with a time-and-a-half premium in the contract
Amount
Normal pay: 8 hours at £12.71 £101.68
With a 1.5x contractual premium £152.52
Extra pay for the shift £50.84
Extra employer NI on that (15%, for an employee already above the threshold) £7.63

The premium is an example of a contract term, not a legal requirement.

Part-time workers and bank holidays

Part-time workers get the same 5.6 weeks pro rata, and the bank holiday rules are the same as for full-time staff1. Someone working 3 days a week gets 16.8 days a year (3 x 5.6).

If a bank holiday falls on a day a part-time worker does not usually work, the employer cannot make them use holiday for it. Acas's example: two 3-day workers both get 16.8 days including bank holidays; the one who works Mondays uses more of it on bank holidays, because more bank holidays fall on a Monday1.

Swapping a bank holiday and staff on leave

  • A worker can ask to work a bank holiday and take another day off instead (a day in lieu). The employer does not have to agree1.
  • Where bank holidays are part of the holiday entitlement, they keep building up during sick leave, maternity, paternity, adoption and shared parental leave, and other statutory leave1.
  • Tell new starters, and anyone moving to part-time or shift work, how bank holidays work in your organisation1.

Related guides

The questions most people ask after reading this.

Frequently asked questions

Do employees have to be paid extra for working Christmas Day?
No, not by law. Extra pay for Christmas Day or any bank holiday depends on the employment contract. The hourly rate must still meet the minimum wage.
Are bank holidays part of the 28 days' statutory holiday?
They can be. An employer can include bank holidays in the 5.6 weeks (28 days for a 5-day week) or give them on top. The contract should say which.
How much notice do I need to give for a Christmas shutdown?
Acas says at least twice as many calendar days as the holiday days staff must take. Closing Thursday 24 December to Friday 1 January uses 4 days, so tell staff by Wed 16 Dec 2026.
What are the Christmas bank holidays in 2026?
Friday 25 December, Monday 28 December (Boxing Day substitute) and Friday 1 January 2027. Scotland also has Monday 4 January 2027.

Once you know the cost, what next?

Running payroll correctly is the next practical step. These tools handle HMRC RTI submissions, auto-enrolment and payslip generation.

Sources & references

The figures and rules in this guide are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.

  1. Acas: Bank holidays and Christmas (holiday entitlement) www.acas.org.uk/checking-holiday-entitlement/bank-holidays-and-christmas
  2. GOV.UK: Holiday entitlement, bank holidays www.gov.uk/holiday-entitlement-rights/bank-holidays
  3. GOV.UK: UK bank holidays www.gov.uk/bank-holidays
  4. Acas: Pay for working extra hours www.acas.org.uk/pay-for-working-extra-hours
  5. National Minimum Wage and National Living Wage rates (GOV.UK) www.gov.uk/national-minimum-wage-rates
Verified against published GOV.UK and HMRC guidance.
Written and reviewed by the EmployerCalculator team. Content reviewed against HMRC guidance. Estimates only, not financial or legal advice. See our methodology and sources.

Written and reviewed by the EmployerCalculator team.

Every figure is checked against current HMRC and GOV.UK guidance and reviewed for the 2026/27 tax year. We explain the numbers in plain English with worked examples. Editorial standards · About us