Work out your take-home pay
Income tax, National Insurance and net pay for any UK salary, 2026-27.
An agency worker who stays in the same role with the same hirer for 12 continuous calendar weeks becomes entitled to the same pay, working time and holiday as a directly recruited colleague [1] [2]. From 1 October 2026, the time limit for bringing a tribunal claim under the Agency Workers Regulations 2010 doubled from three to six months [3].
The Agency Workers Regulations 2010 came into force on 1 October 2011 and apply to every temporary work agency and every hirer that uses agency staff under its supervision and direction [4] [5]. They sit alongside a separate set of rules on how agencies conduct their business, and alongside the tax rules that decide who runs PAYE for an agency worker.
The regulations have been tightened twice in their recent history. The "pay between assignments" opt-out from equal pay was abolished on 6 April 2020, and the Fair Work Agency took over enforcement of the agency conduct rules on 7 April 2026 [6] [7].
This guide explains who counts as an agency worker, which rights apply from the first day, how the 12-week clock is counted, what equal treatment on pay covers, how liability is split between agency and hirer, and what the rules mean for payroll.
Key takeaways
- From day one, agency workers have the right to use the hirer's collective facilities and to be told about relevant vacancies [8] [9].
- After 12 continuous calendar weeks in the same role with the same hirer, they are entitled to equal treatment on pay, working time, night work, rest periods, rest breaks and annual leave [1] [10].
- Occupational sick pay, pensions, enhanced family pay, redundancy pay and loyalty bonuses are excluded from equal pay [10].
- Patterns of assignments designed to stop workers reaching 12 weeks can lead to an additional award of up to £5,000 [3] [11].
- For tax purposes the agency that contracts with the client is usually the employer that operates PAYE, and from 6 April 2026 it carries the PAYE risk where an umbrella company pays the worker [12] [13].
Who the regulations cover
Regulation 3 defines an agency worker as an individual supplied by a temporary work agency to work temporarily for, and under the supervision and direction of, a hirer, under a contract of employment with the agency or another contract to perform work personally [5]. An individual is outside the definition where the agency or the hirer is in reality a client or customer of a business the individual runs [5].
Agency, hirer and worker
The government guidance describes the typical pattern: the agency pays the worker and deducts tax and National Insurance, the worker submits timesheets to the agency, the hirer directs the work day to day, and the agency pays statutory sick pay and holiday pay [4]. Acas adds that an agency may also be called a recruitment agency, a temporary work agency, a staffing company or an employment business [14].
A hirer is any person engaged in economic activity, whether or not for profit, that books agency workers and supervises them [4]. A division within a company is not a separate hirer unless it has its own legal identity, which matters when counting the 12 weeks across sites [4] [1].
Who falls outside
The regulations do not apply where an agency simply introduces a candidate for a permanent or fixed-term role paid directly by the employer [4] [15]. Nor do they cover contractors whose staff stay under the contractor's own direction, such as an outsourced canteen operator working on a client's site [4].
Genuinely self-employed individuals in business on their own account are also out of scope [5]. The guidance gives the example of an IT consultant working through a limited company who can send a substitute and is paid per deliverable, while stressing that the test reflects the reality of the relationship, not the contract wording [4]. The wider tests are covered in the guide to employment status in the UK.
Rights from the first day of an assignment
Two rights under the regulations apply from day one, with no qualifying period, and both are the hirer's responsibility [4]. They sit on top of the rights every worker has from the start, such as the National Minimum Wage, 5.6 weeks' paid holiday, rest breaks and protection from discrimination [16].
Collective facilities and amenities
Under regulation 12, an agency worker must be treated no less favourably than a comparable worker in access to collective facilities and amenities, unless the difference is objectively justified [8]. The regulation names canteens, childcare facilities and transport services, and GOV.UK adds examples such as drinks machines, a mother and baby room and car parking [8] [17].
The right concerns access, not benefits linked to long service. The guidance states that a subsidised off-site gym, discounts in a staff shop or subsidised canteen meals are not covered, although a hirer can extend them voluntarily [4] [8].
Information about vacancies
Regulation 13 gives agency workers the right to be told about relevant vacant posts with the hirer, so that they have the same opportunity as a comparable worker to find permanent employment [9]. A general announcement in a suitable place in the hirer's establishment is enough, for example an intranet page or a notice board [9] [4].
Information from the agency before work starts
Separate rules require the agency to give a key information document before agreeing terms with a new agency worker, a requirement that took effect on 6 April 2020 [7] [18]. It must set out the minimum rate of pay, a sample payslip estimating take-home pay, who pays the worker, any fees, and any benefits [19].
When an assignment is offered, the agency must also give details in writing, including the hirer's name, start date, likely duration, location, hours, pay and health and safety risks [14] [19]. The Fair Work Agency now enforces the key information document requirement [7].
The 12-week qualifying period
The core right to equal treatment depends on regulation 7. The agency worker must work in the same role with the same hirer for 12 continuous calendar weeks, during one or more assignments [1].
How weeks are counted
Any week during the whole or part of which the agency worker works counts as a calendar week [1]. The government guidance explains that a week is any 7-day period starting with the first day of the assignment, and that it counts regardless of how many hours are worked, so a worker on site for two hours a week still qualifies after 12 weeks [4].
Weeks are counted per hirer, not per agency. A worker supplied to the same hirer in the same role by two different agencies carries the weeks across, and a worker placed with four hirers runs four separate clocks [4] [1].
Breaks that pause, continue or reset the clock
Regulation 7(8) lists the breaks that do not break continuity, and the regulation treats some of them as weeks worked [1]. The table summarises the effect of each type of absence, using the regulation and Acas guidance [6] [1].
| Type of break | Effect on the 12-week clock |
|---|---|
| Any break of 6 calendar weeks or less | Pauses, then resumes |
| Sickness or injury of 28 calendar weeks or less | Pauses, then resumes |
| Jury service of 28 calendar weeks or less | Pauses, then resumes |
| Annual leave the worker is entitled to | Pauses, then resumes |
| Planned workplace shutdown or industrial action | Pauses, then resumes |
| Pregnancy-related absence up to 26 weeks after birth, maternity, adoption or paternity leave | Continues to count |
| Break of more than 6 weeks for any other reason | Resets to zero |
The clock also resets when the worker starts a substantively different role with the same hirer, but only if the agency has told the worker in writing about the new type of work [1]. The guidance gives the example of a warehouse worker moving from the production line to packing, which is unlikely to be substantively different [4].
Anti-avoidance
Nothing in the regulations prevents a hirer from ending an assignment at 11 weeks, or from using 12-week assignments as standard practice [4]. Regulation 9 targets something narrower: a structure of assignments, or of roles, whose most likely explanation is an intention to prevent the worker from qualifying [11].
Where a tribunal finds that intention, the worker is treated as having qualified at the point they otherwise would have, and the tribunal can make an additional award of up to £5,000 [11] [3]. Repeated assignments of 12 weeks separated by breaks of just over 6 weeks are the pattern the guidance flags [4].
Equal treatment after 12 weeks
Once qualified, the agency worker is entitled to the same basic working and employment conditions as if recruited directly by the hirer to the same job at the time the qualifying period began [2]. Those conditions are limited to six areas: pay, duration of working time, night work, rest periods, rest breaks and annual leave [10].
What counts as pay
Pay covers any sum payable in connection with the employment, including fees, bonuses, commission and holiday pay [10]. The table sets out what is in and out, drawing on regulation 6 and Acas guidance [10] [6].
| Included in equal pay | Excluded from equal pay |
|---|---|
| Basic pay, including increments | Occupational sick pay above SSP |
| Overtime pay | Occupational pension contributions |
| Shift and unsocial hours allowances | Enhanced maternity, paternity, adoption and similar family pay |
| Bonuses linked to individual performance | Bonuses for company performance or long service |
| Commission | Redundancy pay |
| Holiday pay above the statutory minimum | Guarantee payments and paid trade union time |
Where a hirer has a clear rate for the job, the agency worker must receive at least that rate after 12 weeks. The guidance gives the example of permanent staff paid from £8 to £10 an hour and agency workers kept at £6 after 12 weeks, which it says is not allowed [4] [2]. Any example rate below the National Living Wage, which is £12.71 an hour for workers aged 21 and over, would also breach minimum wage law [20].
Working time and holidays
Equal treatment on working time concerns limits and patterns, not a guaranteed number of hours. The guidance records the Court of Appeal's view in the Kocur case that the regulations do not entitle an agency worker to the same contractual hours as a comparable employee [4] [10].
On holidays, an agency worker who qualifies receives any enhanced leave the hirer gives its own staff, above the statutory 5.6 weeks [4]. Acas explains that additional leave above the statutory minimum can be taken as time off or paid on top of the hourly rate, while the statutory entitlement must be paid when the leave is taken [6] [4].
Pregnant agency workers
After 12 weeks, a pregnant agency worker is entitled to paid time off for antenatal appointments, including travel time during working hours [21] [6]. Where a health risk cannot be removed, the agency must find suitable alternative work or pay the worker for the expected length of the assignment [21].
An agency worker may qualify for Statutory Maternity Pay but does not have the right to Statutory Maternity Leave from the hirer [21]. Pregnancy-related absence during the protected period, which runs to 26 weeks after childbirth, still counts towards the 12 weeks [1].
The end of pay between assignments
Until 6 April 2020, an agency could avoid equal pay by employing the worker on a permanent contract and paying them between assignments, a model known as the Swedish derogation [6]. The Agency Workers (Amendment) Regulations 2019 removed regulation 10, so these contracts no longer displace the right to equal pay [22] [4].
Liability, information requests and tribunal claims
Responsibility is split according to who controls each right. The hirer is liable for day-one rights, because only it controls access to its facilities and vacancies [4]. For equal treatment after 12 weeks, the agency and the hirer are each liable to the extent they are responsible for a breach [23].
The agency's defence
An agency is not liable for an equal treatment breach if it took reasonable steps to obtain information from the hirer about its basic working and employment conditions, acted reasonably on that information, and applied the resulting terms [23]. In practice, the agency's protection depends on the hirer sharing pay scales and leave policies before the 12 weeks end [4].
Umbrella companies in the supply chain are treated as temporary work agencies for these purposes, so information has to pass along the whole chain [4] [23]. The payroll mechanics of that model are covered in the guide to umbrella company payroll.
Written statements
An agency worker who believes equal treatment has been breached can ask the agency in writing for a statement, which must be provided within 28 days [24]. If nothing arrives within 30 days, the worker can ask the hirer directly, and a tribunal can draw an inference from a failure to respond [24] [4].
Tribunal claims and awards
A worker can complain to an employment tribunal about breaches of regulations 5, 12, 13 and 17(2) [3]. Regulation 17 also treats the dismissal of an agency worker who is an employee as unfair where the reason is that the worker asserted rights under the regulations [25].
The table summarises the main remedies set out in regulation 18 [3] [4].
| Remedy | Rule |
|---|---|
| Time limit | Six months from the breach (three months before 1 October 2026), extendable where just and equitable |
| Compensation for equal treatment breaches | Just and equitable, with a minimum of two weeks' pay unless that would be unjust |
| Additional award for anti-avoidance | Up to £5,000, shared between respondents as the tribunal decides |
| Other orders | Declaration of rights and recommendations to reduce the adverse effect |
The government's recruiter guidance still refers to a three-month limit, but the Employment Rights Act 2025 substituted six months in regulation 18(4) with effect from 1 October 2026 [3] [4].
What the regulations mean for payroll
The regulations decide what an agency worker must be paid. Tax and pensions law decides who pays it, who deducts tax and National Insurance, and who enrols the worker in a pension. The three sets of rules meet on the payslip.
Who operates PAYE
Under section 44 of the Income Tax (Earnings and Pensions) Act 2003, where its conditions are met, the worker is treated as employed by the agency, and the agency that contracts directly with the client must operate PAYE and report through RTI [12]. Agencies that do not deduct tax and National Insurance for a worker must keep records and make quarterly returns to HMRC explaining why [26].
From 6 April 2026, where an umbrella company employs the worker, the agency that contracts with the end client, or the end client if there is no agency, is responsible for making sure PAYE is operated correctly, and HMRC can recover any underpayment from it [13]. An HMRC-recognised payroll bureau platform gives agencies and their accountants a single view of RTI submissions across the workers they place [12] [13].
Equal pay in a payroll run
The switch to equal pay at week 13 changes every figure on the payslip. The example compares an agency worker on the National Living Wage of £12.71 an hour with the same worker moved to a hirer's rate of £14.50 an hour after 12 weeks, both on 37.5 hours a week and tax code 1257L [20] [2].
The figures below were computed with the Moonworkers calculation engine on the 2026-27 rates for England [27].
| Weekly gross | Income tax | Employee NI | Employer NI | Net pay |
|---|---|---|---|---|
| £476.63 (weeks 1 to 12) | £46.80 | £18.77 | £57.09 | £411.06 |
| £543.75 (from week 13) | £60.20 | £24.14 | £67.16 | £459.41 |
The worker's weekly net pay rises by £48.35, while the agency's employer National Insurance rises by £10.07 a week on top of the £67.12 increase in gross pay [27]. Agencies price these step changes into the charge rate with the hirer, so the date each worker reaches week 13 is a payroll and billing event, not only an HR one [1].
Holiday, sick pay and pensions
Many agency workers have irregular hours. For leave years starting on or after 1 April 2024, their statutory holiday accrues at 12.07% of hours worked in each pay period, and employers can pay rolled-up holiday pay to irregular-hours and part-year workers [28] [29]. The government guidance asks for holiday pay to be shown separately on the payslip [4]. The detail is in the guide to rolled-up holiday pay.
Statutory sick pay is paid by the agency, at £123.25 a week or 80% of average weekly earnings if lower, and GOV.UK notes that special rules apply to agency workers [30] [31]. For automatic enrolment, The Pensions Regulator treats an agency worker as a worker, and the employer duties fall on whichever of the agency or the hirer is responsible for paying them [32]. The employer side is explained in the guide to automatic enrolment.
Embedding the rules in agency software
Staffing platforms hold the data that drives these rules: assignment start dates, breaks, roles and hirer pay scales. A UK payroll engine exposed through an API lets a staffing platform calculate PAYE, National Insurance, holiday accrual and statutory pay in its own product while the platform tracks the 12-week clock [1] [12]. Smaller hirers and agencies running payroll directly can use HMRC-recognised SME payroll software for the same calculations.
Changes ahead under the Employment Rights Act 2025
The government's roadmap for the Employment Rights Act 2025 phases its measures across 2026 and 2027, and confirmed the launch of the Fair Work Agency [33]. The Fair Work Agency began operating on 7 April 2026 and replaced the Employment Agency Standards Inspectorate [7].
Acas lists the conduct the Fair Work Agency can investigate, including an agency refusing to pay what a worker is owed, charging a fee to find work, or using an umbrella company without telling the worker who it is and what it charges [34]. The new rights on zero-hours and low-hours contracts, which the Act extends to agency workers, are not yet in force, and GOV.UK's employer guidance says it will be updated once they are [35] [33].
Size the cost of equal pay
Before an assignment passes week 12, an agency or hirer can test the effect of a new hourly rate with the Moonworkers UK salary calculator, which applies the 2026-27 PAYE and National Insurance rules to any gross pay and shows the employer's National Insurance alongside the worker's take-home pay.
£ per month
e.g. 1257L, S1257L, BR, D0
S = Scotland · C = Wales · W1/M1 = non-cumulative
Enter a salary or hourly rate above
About this calculator
This calculator gives you a close estimate of your UK payroll deductions for 2026-27, using HMRC's exact percentage method with periodised thresholds. It handles the three tax territories, K codes with the 50% regulatory limit and its carry-forward, weeks 53, 54 and 56, the cumulative and W1/M1/X bases, student and postgraduate loans, and pension contributions on qualifying earnings. It still won't match your payslip to the penny in every case: it does not cover in-year tax code changes, payrolled benefits in kind, NI deferral across more than one employment, directors on the annual earnings period, or employer-level annual adjustments such as the Employment Allowance and the apprenticeship levy. Powered by the same engine as the Moonworkers Payroll API.
Frequently asked questions
Why might the result differ from my payslip?
This calculator uses your current gross pay and tax code to produce an estimate. K-code carry-forwards and weeks 53, 54 and 56 are handled, and the Year-to-date section reproduces a specific period exactly. What your employer may apply that this does not: a mid-year tax code change, benefits in kind processed through payroll, or NI deferral across more than one employment. For most employees on a standard tax code the difference is negligible.
What tax code should I enter?
Use the tax code shown on your most recent payslip or the PAYE Coding Notice (P2) from HMRC. If you're not sure, 1257L is the standard code for most employees resident in England, Wales, or Northern Ireland. Use S1257L for Scotland or C1257L for Wales if you pay Scottish or Welsh income tax.
Which NI category applies to me?
Most employees use Category A. Use M if you are under 21, H if you are an apprentice under 25, or C if you are over State Pension age. Your employer is responsible for assigning the correct category — if in doubt, check your payslip.
Which student loan plan am I on?
Your plan depends on when and where you studied. Plan 1 covers students who started before September 2012. Plan 2 is for English and Welsh students who started from September 2012 to July 2023. Plan 5 applies to English students who started from August 2023. Plan 4 covers Scottish students. You can check your plan at gov.uk or on your payslip.
What is the YTD cumulative PAYE mode?
HMRC's standard method calculates income tax on your total earnings to date each period, then subtracts tax already paid. If you're mid-year and want to see exactly what tax should be deducted in a specific period, expand the Year-to-date section and enter your running totals from previous periods only.
Conclusion
The Agency Workers Regulations rest on a simple bargain. Hirers get flexibility for the first 12 weeks of an assignment, and after that the agency worker is paid and rested as if directly recruited. Most disputes arise at the edges of that bargain: how breaks are counted, what a "substantively different" role is, which payments count as pay, and whether a pattern of assignments was designed to avoid week 13.
The direction of change is towards more scrutiny of the whole supply chain. Agencies now carry PAYE risk for umbrella companies, a single enforcement body covers agency conduct, and the time to bring a claim has doubled. For agencies and hirers, the practical answer is data: assignment histories, hirer pay scales and payroll calculations that sit in one place and update the moment a worker qualifies.
Frequently asked questions
Do agency workers get the same holiday as permanent staff?
Every agency worker is entitled to the statutory minimum of 5.6 weeks' paid holiday from the start of an assignment [16]. After 12 weeks in the same role with the same hirer, they are also entitled to any additional leave the hirer gives its own employees, which can be taken as time off or paid on top of the hourly rate [6].
Does the 12-week clock restart with a new agency?
No, if the worker stays in the same role with the same hirer. The qualifying period is counted per hirer and role, so weeks worked through one agency carry over when another agency supplies the worker to the same job [4]. The clock restarts only after a break of more than 6 weeks for a non-protected reason, a move to a new hirer, or a substantively different role confirmed in writing [1].
Are agency workers entitled to occupational sick pay?
No. Occupational sick pay is expressly excluded from the definition of pay for equal treatment purposes [10]. Agency workers who meet the conditions receive statutory sick pay, which the agency pays [4].
Can a hirer end an assignment at 11 weeks to avoid equal pay?
A single assignment can lawfully end before 12 weeks [4]. A repeated pattern whose most likely explanation is to stop the worker qualifying is treated as avoidance, and a tribunal can treat the worker as qualified and make an additional award of up to £5,000 [11] [3].
