Leap Year Pay UK: Must Employers Pay More?

Paying employees correctly is a fundamental legal obligation under UK employment law. Even a small payroll miscalculation can expose an employer to claims for unlawful deduction of wages, breach of contract or regulatory enforcement under minimum wage legislation. For employer-facing guidance on pay compliance and risk, see our wider resources on employment law and pay and deductions. Every four years, questions arise around leap year pay and whether the additional calendar day on 29 February creates a legal entitlement to extra wages.

However, disputes over pay remain one of the most common workplace issues and while they are generally easier to resolve when dealt with quickly, they are best avoided altogether. In some cases, the issue arises because there is a difference between the pay an employee is entitled to and what they might be expecting. For example, employees may wonder if they will be paid more for working the extra leap-year day.

In this guide, we explain what the law says about leap year pay and how employers should deal with queries relating to pay during a leap year.

What this article is about

This article explains how leap year pay operates under UK employment law. It examines whether hourly-paid workers and salaried employees are entitled to additional pay in a leap year, how National Minimum Wage rules apply, whether employers can require staff to work 29 February and how to manage the legal risks of pay disputes. The focus is on practical compliance for UK employers.

Section A: What Is Leap Year Pay in the UK?

Leap year pay is not governed by a specific statute. There is no provision in UK employment legislation that requires employers to increase wages simply because a year contains 366 days instead of 365. Instead, entitlement to pay on 29 February is determined by general principles of contract law and statutory wage protection.

The starting point is that employees are entitled to be paid what they are contractually owed and no less than the statutory minimum. The presence of an additional calendar day does not automatically create a new entitlement.

1. The legal framework

Leap year pay questions engage several core pieces of legislation:

• Employment Rights Act 1996 (ERA 1996) – protects workers from unlawful deductions from wages and provides the statutory framework for wage claims. In practice, leap year pay disputes often fall within the scope of deductions from wages rules and may be pursued as an unlawful deduction of wages claim.
• National Minimum Wage Act 1998 (NMWA 1998) and associated Regulations – ensure workers receive at least the applicable statutory minimum rate during each pay reference period.
• Working Time Regulations 1998 (WTR 1998) – govern annual leave entitlement and working time, relevant where employees request leave on 29 February.
• General principles of contract law – determine how salary, hourly pay and working patterns are interpreted.

Under section 13 ERA 1996, an employer must not make deductions from wages unless authorised by statute, contract or prior written consent. A failure to pay wages properly due may constitute an unlawful deduction, including where the employer fails to pay the worker what they are legally and contractually entitled to receive.

The question in a leap year is therefore not whether an extra day exists, but whether additional pay is contractually or statutorily required.

2. Contractual structure determines entitlement

The key distinction in leap year pay cases is between:

• Hourly-paid workers, and
• Salaried employees paid an annual salary in instalments.

For hourly-paid workers, pay correlates directly with hours worked. If additional hours are worked, those hours must be paid.

For salaried employees, pay is typically expressed as an annual figure. Where salary is defined annually and paid in equal monthly or weekly instalments, the employee is paid for the full year of service. The fact that one year contains 366 days does not normally alter that entitlement.

The contract is decisive. Employers should review:

• Whether pay is expressed as an annual sum.
• Whether a daily rate is specified.
• Whether working hours are fixed weekly hours or variable.
• Whether there are any express provisions addressing pay calculations.

Absent a specific contractual clause, leap year pay entitlement must be inferred from how remuneration is structured. In most cases, where pay is genuinely annualised, there is no implied term requiring pro-rating because of an extra calendar day.

3. No automatic right to additional leap year pay

It is important to dispel a common misconception: a leap year does not automatically mean employees “work an extra day”.

Whether 29 February is worked depends entirely on:

• The employee’s contracted working pattern.
• Their shift rota.
• Whether the date falls on a normal working day.

If an employee works five days per week under a standard weekly pattern, they will still work five days in that week regardless of whether it is a leap year. The structure of weeks does not change.

The law therefore looks to actual hours worked and contractual pay arrangements, not the number of calendar days in a year.

Section Summary

Leap year pay in the UK is governed by contract and general wage legislation, not by any special statutory rule. There is no automatic entitlement to extra pay because 29 February exists. Employers must examine how remuneration is structured and whether additional hours are actually worked. The legal analysis begins and ends with contract and statutory minimum wage compliance.

Section B: Leap Year Pay for Hourly Workers (UK)

For hourly-paid workers, leap year pay questions are generally more straightforward than for salaried employees. The legal principle is that workers must be paid for the hours they actually work. If no additional hours are worked, no additional pay is due. If additional hours are worked, those hours must be paid at the agreed rate.

The analysis therefore turns on hours worked, not on the mere existence of 29 February.

1. When extra pay is legally required

An hourly-paid worker is entitled to be paid for every hour worked under the terms of their contract. If 29 February falls on a day when the worker is scheduled to work, and they perform their usual shift, they must be paid for that shift in the same way as any other working day.

Extra pay becomes relevant only where the leap year results in additional hours beyond the worker’s normal pattern.

For example:

• If a worker is contracted to work variable shifts and the rota includes an additional shift because 29 February falls within the scheduling cycle, those hours must be paid.
• If overtime is worked on 29 February, that overtime must be paid in accordance with contractual overtime provisions. Employers should ensure overtime rules and rates are clear, including where staff query overtime pay entitlement on the leap day.
• If the worker’s total hours during the pay reference period increase as a result of the leap day, remuneration must reflect those additional hours.

The legal risk arises if the employer fails to pay for hours actually worked. That may constitute an unlawful deduction of wages under section 13 of the Employment Rights Act 1996, with the dispute typically analysed under the statutory framework for deductions from wages and, where applicable, pursued as an unlawful deduction of wages claim.

2. When no extra pay is due

A leap year does not automatically increase a worker’s weekly contractual hours.

For instance:

• A worker contracted to work 35 hours per week will still work 35 hours that week unless additional hours are scheduled.
• A standard Monday-to-Friday worker will still work five days in that week.
• A leap year does not convert a seven-day week into an eight-day week.

Monthly payroll arrangements do not alter this principle. The fact that February in a leap year contains 29 days instead of 28 does not itself generate additional entitlement. What matters is whether the worker has worked more hours than they otherwise would have done under their agreed pattern.

Employers should therefore avoid calculating leap year pay based on the number of weekdays in the month. The legally relevant factor is hours actually worked.

3. National Minimum Wage considerations for hourly workers

Where hourly workers are paid at or close to the applicable National Minimum Wage or National Living Wage rate, employers must ensure that:

• Total pay during the pay reference period
• Divided by total hours worked

does not fall below the statutory minimum.

If additional hours are worked during a leap year pay reference period and are not properly remunerated, this may create:

• An unlawful deduction of wages claim, and
• A breach of National Minimum Wage legislation.

For minimum wage guidance and compliance risk management, see minimum wage and national living wage. Employers should also ensure they are working to current statutory rates and annual updates, including changes covered in increase in National Minimum Wage rates from April 2025.

Under the National Minimum Wage Act 1998, enforcement action may include arrears repayment, financial penalties and public naming. In serious cases, criminal prosecution is possible, although civil enforcement is the main mechanism.

4. Tribunal exposure and practical risk

If an hourly worker is not paid for hours worked on 29 February, they may raise an internal grievance and may also bring a claim in the employment tribunal for unlawful deduction of wages.

Tribunal claims for wage deductions are time-sensitive. In most cases, claims must be presented within three months less one day from the date of the last deduction in a series, subject to Acas early conciliation requirements and the two-year backstop that applies to most unlawful deduction claims. Employers should therefore treat leap year payroll issues as potentially time-critical disputes. For guidance on pre-claim process, see Acas early conciliation.

Even where the monetary value of the dispute is small, the reputational and management cost of defending proceedings can be disproportionate.

Employers should therefore treat leap year payroll checks as part of routine compliance, particularly where shift patterns or variable hours are involved.

Section Summary

For hourly-paid workers, leap year pay entitlement depends entirely on hours actually worked. If additional hours are worked, they must be paid. If weekly hours remain unchanged, there is no automatic right to extra pay. Employers must ensure both contractual compliance and continued adherence to statutory minimum wage requirements.

Section C: Leap Year Pay for Salaried Employees (UK)

Leap year pay questions are more nuanced for salaried employees. Unlike hourly-paid workers, salaried staff are typically remunerated by reference to an annual figure rather than hours worked on particular days. This distinction is central to determining whether any additional pay is due when 29 February appears in the calendar.

In most cases, salaried employees are not entitled to extra pay in a leap year. However, employers must still ensure contractual clarity and statutory minimum wage compliance.

1. Why salaried employees are usually not entitled to extra pay

Where an employee’s contract states that they are entitled to an annual salary, for example £40,000 per annum paid in 12 equal monthly instalments, that salary covers the whole year of service.

A leap year does not alter that contractual arrangement. The employee is employed for the year, not paid per calendar day unless the contract expressly provides otherwise.

The courts interpret salary clauses according to their natural meaning. If remuneration is defined annually, the fact that one year contains 366 days rather than 365 does not create an implied entitlement to additional payment.

Accordingly:

• If 29 February falls on a day the employee would normally work, they are paid as usual.
• If it falls on a non-working day, no additional issue arises.
• There is no automatic right to an extra day’s pay simply because the year contains an extra date.

The key question is whether the contract specifies pay by reference to days or whether it is genuinely annualised. In the vast majority of UK employment contracts, pay is annualised.

2. National Minimum Wage compliance risks

Although salaried employees are generally not entitled to extra leap year pay, employers must still ensure compliance with the National Minimum Wage Act 1998 and the National Minimum Wage Regulations 2015.

For minimum wage purposes, employers must calculate:

• Total remuneration in the pay reference period, and
• Total hours worked in that period.

For monthly-paid workers, the pay reference period is usually one month. For weekly-paid workers, it is one week. Where an employee falls within the “salaried hours work” category under the Regulations, annual hours are divided into equal instalments across the year. Employers must ensure that the effective hourly rate does not fall below the applicable statutory minimum.

If the presence of 29 February results in additional hours being worked within the relevant pay reference period, employers must check that the effective hourly rate remains compliant. This is particularly important where salaries are relatively low or where employees regularly work long hours without additional overtime pay.

Failure to maintain compliance may result in:

• Repayment of arrears.
• Financial penalties imposed by HMRC.
• Public naming by the government.
• In serious or deliberate cases, criminal prosecution.

For detailed guidance on statutory minimum pay obligations, employers should review current minimum wage requirements and ensure alignment with the applicable national living wage rate for eligible workers.

3. Contractual exceptions and daily rate arrangements

While most salaried employees will not be entitled to additional leap year pay, exceptions may arise.

For example:

• Where the contract specifies a daily rate rather than an annual salary.
• Where pay is explicitly calculated by reference to a fixed number of working days per year.
• Where there is an express clause dealing with pro-rating based on calendar days.

In such cases, a leap year could potentially alter the calculation of pay. Employers should review:

• How salary is expressed.
• Whether any pro-rating mechanisms are triggered.
• Whether the contract permits variation.

Absent such wording, there is no implied obligation to pay more because of the leap day.

4. Constructive dismissal and wage disputes

If an employer deliberately withholds pay that is contractually due, this may amount to a fundamental breach of contract. In serious cases, an employee could resign and claim constructive dismissal.

However, not every disagreement over leap year pay will reach that threshold. A one-off payroll error that is promptly corrected is unlikely to constitute a repudiatory breach. The breach must be sufficiently serious and fundamental.

The legal risk increases where:

• The employer ignores a clear contractual entitlement.
• Underpayment is repeated or systemic.
• Minimum wage compliance is breached.

In practice, leap year pay disputes should be treated as potential wage claims under the Employment Rights Act 1996 and handled with the same care as any other pay-related complaint.

Section Summary

Salaried employees in the UK are generally not entitled to additional leap year pay because their remuneration is defined annually. The extra calendar day does not change the contractual salary. However, employers must ensure National Minimum Wage compliance and review any contracts that calculate pay by reference to daily rates or fixed numbers of working days. Clear contractual drafting significantly reduces risk.

Section D: Managing Leap Year Pay Risk & Employer Best Practice

Although leap year pay rarely creates a legal obligation to increase salaries, it can generate confusion and disputes if not handled carefully. Employers should approach 29 February as a compliance checkpoint rather than as a one-off anomaly.

Clear contractual drafting, payroll accuracy and effective communication are the main safeguards against escalation.

1. Can employers require staff to work on 29 February?

There is no special legal status attached to 29 February.

Whether an employee must work that day depends entirely on:

• Their employment contract.
• Their agreed weekly working pattern.
• Their rota or shift allocation.

If 29 February falls on a day the employee is normally required to work, they are contractually obliged to attend. Refusal without lawful excuse could amount to unauthorised absence.

If it falls on a non-working day under the contract, the employer cannot compel attendance unless the contract allows for flexibility in scheduling and compliance with legal working hours requirements.

Some employees may request annual leave on 29 February. Under the Working Time Regulations 1998, workers are entitled to 5.6 weeks’ statutory annual leave. This entitlement is expressed in weeks, not days, so a leap year does not increase statutory leave entitlement. For practical guidance on calculating leave, see holiday entitlement.

Employers may refuse a leave request provided appropriate notice is given. Regulation 15 WTR 1998 allows an employer to require leave to be taken on specific dates, provided notice is at least twice the length of the leave period. Employers should ensure consistency with their annual leave policy and broader obligations relating to working time and rest.

2. Handling leap year pay complaints

If an employee believes they are entitled to additional leap year pay, the issue should be addressed promptly.

Initial steps should include:

• Reviewing the employment contract.
• Checking actual hours worked.
• Verifying payroll calculations.
• Confirming National Minimum Wage compliance.

If the matter cannot be resolved informally, employers must follow their grievance procedure and ensure alignment with their internal grievance policy. Issues concerning grievances at work should be handled consistently and without delay.

The Acas Code of Practice on Disciplinary and Grievance Procedures requires employers to:

• Investigate complaints fairly and promptly.
• Allow the employee to present their case.
• Provide a written outcome.
• Offer a right of appeal.

Failure to follow the Acas Code can result in an uplift of up to 25% in any tribunal compensation award.

Where a complaint relates to unpaid wages, an employee may bring a claim for unlawful deduction of wages in the employment tribunal, subject to Acas early conciliation and statutory time limits. Employers should therefore treat payroll complaints as potentially litigious matters.

3. Avoiding disputes and maintaining compliance

The most effective risk management tool is clarity.

Employers should:

• Ensure employment contracts clearly define salary as an annual figure where appropriate.
• Avoid ambiguous references to daily rates unless intended.
• Conduct payroll audits in February of leap years.
• Communicate in advance with staff where confusion may arise.

Where staff are paid close to statutory minimum rates, an additional compliance check should be performed to confirm that effective hourly rates remain lawful during the relevant pay reference period.

Some employers choose to offer goodwill gestures, such as time off in lieu or discretionary bonuses. These are commercial decisions rather than legal requirements. If offered, they should be clearly documented as discretionary to avoid creating contractual precedent.

4. Reputational and employee relations considerations

While the legal position may favour the employer in most salaried cases, perceptions matter. Pay disputes can affect morale and engagement.

A transparent explanation that salary is calculated annually and that leap years are factored into annual remuneration will often prevent misunderstanding.

Employers who ignore or dismiss concerns risk escalating what is typically a small financial issue into a wider workplace relations problem.

Section Summary

Leap year pay should be managed through contractual clarity, payroll checks and proactive communication. There is no automatic entitlement to additional pay, but mishandling the issue can result in wage claims, minimum wage breaches or tribunal exposure. Employers who treat 29 February as a compliance exercise rather than an anomaly will minimise legal and reputational risk.

FAQs: Leap Year Pay UK

Do employers have to pay extra in a leap year?

No. There is no automatic legal requirement in UK employment law to pay employees extra because a year contains 29 February. Entitlement depends on the employment contract and whether additional hours have actually been worked.

Hourly-paid workers must be paid for hours worked. Salaried employees paid an annual salary are not usually entitled to additional pay.

Does a leap year increase salary?

No. If an employee is paid an annual salary, that salary covers the whole contractual year of service, whether the year contains 365 or 366 days. Unless the contract specifies payment by reference to days worked, there is no automatic salary increase in a leap year.

Are salaried employees paid separately for 29 February?

No. In most cases, salaried employees receive equal instalments of their annual salary throughout the year. 29 February is treated like any other working day. There is no separate payment unless the contract expressly provides for it.

Do hourly workers get extra pay in a leap year?

Hourly workers must be paid for all hours actually worked. If 29 February results in additional hours beyond their normal pattern, those hours must be paid. If their weekly hours remain unchanged, no additional pay is due simply because it is a leap year.

Can an employee refuse to work on 29 February?

There is no special right to refuse to work on 29 February. If it falls on a normal working day under the employee’s contract, they are required to work unless annual leave or other authorised absence has been approved.

Can leap year pay issues lead to tribunal claims?

Yes. If an employer fails to pay wages that are contractually due, the employee may bring a claim for unlawful deduction of wages under the Employment Rights Act 1996. In serious cases involving deliberate or persistent underpayment, disputes may also give rise to breach of contract or constructive dismissal claims.

Minimum wage underpayment may also trigger enforcement action by HMRC.

Conclusion

Leap year pay in the UK is governed by contract and general wage protection legislation, not by any special statutory rule for 29 February. There is no automatic entitlement to additional pay simply because the year contains 366 days.

Hourly-paid workers must be paid for hours actually worked. Salaried employees paid an annual salary are not normally entitled to extra remuneration. However, employers must ensure continued compliance with National Minimum Wage requirements and respond appropriately to any wage complaints.

Clear contractual drafting, payroll accuracy and proactive communication remain the most effective safeguards against leap year pay disputes.

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