Holiday pay and holiday compensation

The right to paid holiday is regulated by the Annual Leave Act and collective agreements regarding general terms of employment.

The right to holiday leave and the right to holiday pay are not directly linked. You are only entitled to paid holiday in proportion to the period of time you have worked for your employer. Days you have been absent without pay are not counted.

Paid holiday 

The number of paid holiday days is calculated as follows:25 x the number of days employed during the holiday pay qualifying year / 365 (366 in a leap year). Fractions are rounded upward. For employees with more than 25 days' holiday, the number 25 is replaced by the higher figure.

The number of days employed = the number of calendar days of employment during the qualifying year minus the number of days you have been absent without pay. Unpaid holiday and absence that qualifies for holiday pay are not deducted. Work-free days during a period of leave of absence are not counted as employment days.

Holiday pay 

If your workplace has a collective agreement, you will receive your normal monthly salary during your holiday leave plus a supplement of 0.8 per cent per paid holiday day. If you have also received variable pay components you will also receive 0.5 per cent of that amount.

You will receive the holiday pay supplement of 0.8 per cent with your normal salary payment during or directly after your holiday. The holiday pay supplement of 0.5 per cent is paid no later than at the end of the holiday year.

If there is no collective agreement, your holiday pay is regulated by the Annual Leave Act. This act stipulates that your holiday pay is your weekly or monthly salary at the time of the holiday leave, any fixed salary supplements and also a holiday supplement. The holiday supplement for each day of annual leave with pay is 1,82 per cent of your weekly salary (if you receive your salary on a weekly basis) and 0,43 per cent of your monthly salary (if you receive your salary on a monthly basis).

For variable components of your weekly or monthly salary, the holiday pay for these salary components is 12 per cent of the aggregate variable salary that fell due during the holiday year. If you do not receive your salary on a weekly or monthly basis, your holiday pay comprises 12 per cent of the salary that fell due during the qualifying year.

Holiday compensation

If you leave your employment and have accumulated paid holiday leave, you will receive holiday compensation.

If you are covered by a collective agreement, your holiday compensation is 5.4 per cent of your current monthly salary for each outstanding paid holiday day. For variable salary components, the holiday compensation level is 0.5 per cent of the variable salary that has been paid. The collective agreement stipulates that holiday compensation is to be paid no later than one month after the employment has ended. 

If there is no collective agreement, holiday compensation is regulated by the Annual Leave Act. The compensation level is the same as for holiday pay. For employees who have given notice of resignation and taken out holiday and holiday pay in advance, the holiday compensation is reduced by the equivalent amount. This does not apply to advances paid more than five years previously.