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WORKER TYPE

Agency worker payslip guide

Variable hours, accrued or rolled-up holiday pay, AWR rights after 12 weeks, and the agency margin. The four lines that matter most on an agency payslip and the four traps that cost workers most.

Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.

Related

Common questions

What is AWR and when does it kick in?

The Agency Workers Regulations 2010. After 12 calendar weeks in the same role with the same hirer, you are entitled to the same basic pay and conditions as a permanent employee doing the same work. The 12 weeks count even if your contract is variable.

What is rolled-up holiday pay?

A practice where holiday pay is paid alongside each weekly or monthly wage rather than at the time you take leave. The rolled-up amount is usually 12.07 percent on top of basic pay. From January 2024 (and confirmed for 2026), rolled-up holiday is legal in the UK provided it is clearly itemised on the payslip.

Why does my agency take a margin?

The margin is the agency's fee for placing you. It is deducted before your gross pay is calculated. The agency must disclose the margin to you at the start of the assignment under the Conduct of Employment Agencies Regulations 2003.

Should I be on Class 1 NI as an agency worker?

In most cases yes. The agency is your employer for NI purposes, which means Class 1 employee NI applies. If you are paid through an umbrella, the umbrella is your employer. If you are self-employed (rare for agency work), Class 4 NI applies via Self Assessment.

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PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.