At Freenow, we want to make sure you're always clear on how your earnings work. We’ve put together this guide to help you understand your holiday pay and how we calculate the National Living Wage.
How we calculate your holiday pay
Your holiday pay is calculated as 12.07% of your applicable earnings. This percentage is the standard rate used for rolled-up holiday pay to reflect your legal entitlement.
What counts as applicable earnings?
We include the following in our calculation:
Trip earnings
Incentives
Any National Living Wage (NLW) top-ups
Please note that we don't include vehicle expenses in this calculation.
Understanding the National Living Wage top-up
We’re committed to reliability and fairness. We ensure your weekly earnings are always equal to or higher than the National Living Wage per hour. If your earnings happen to fall below this threshold, we’ll add a top-up to meet the required minimum.
FAQ's
Why is the holiday pay on my offer card estimated?
To keep things transparent, we show an estimated holiday pay amount for every trip. Because holiday pay is calculated weekly, the final amount depends on your total earnings for that entire week.
What is a holiday pay top-up?
At the end of each week, we compare:
The total holiday pay estimated from your trips
The actual 12.07% of your weekly earnings
If the final amount is higher, you'll receive the difference as a holiday pay top-up in your next invoice.
What happens if my estimated holiday pay is higher than the final amount?
If your trip estimates happen to exceed the final weekly calculation, you keep the extra amount. Your pay is never reduced.
Where does the 12.07% rate come from?
The 12.07% rate is the standard percentage used for rolled-up holiday pay, reflecting your legal holiday entitlement.