How is holiday pay calculated?

Employees, by definition, do not work during holidays. Fortunately, neither blue- or white-collar workers suddenly lose their salaries during their holidays. However, holiday pay for both groups of workers is not calculated and paid out in the same way. We will explain how this works and also the exceptions such as variable salary and corrections.

Holiday pay for blue-collar workers

A blue-collar worker’s holiday pay is paid via the holiday fund to which the employer is affiliated. It equates to 15.38% of the salary for the holiday year. This is increased by fictional wages for equivalent days, such as days of economic unemployment.

Holiday pay for white-collar workers

The holiday pay for this group of workers is paid by the employer. The employer must pay single and double holiday pay to workers who go on holiday. Single holiday pay is the ordinary wage that continues through the holiday period.

Double holiday pay for white-collar workers

So-called double holiday pay is a special allowance that equates to a maximum of 92% of the gross wage for the month in which the worker takes a holiday. This maximum assumes that the worker has worked for 12 months in the previous year or has made up this time with equal periods (such as sickness). Otherwise, for each missing month, there will be a reduction of 1/12 of the 92% of one month’s gross wage. The calculation of single and double holiday pay does not take account of the benefits of luncheon vouchers, employer’s contribution to group insurance and/or private usage of the company car, mobile and computer. The calculation does, however, take account of variable pay such as premiums, commission, etc.

Holiday pay on variable salary

As a reference for the calculation of holiday pay on a variable wage, we look to the effectively earned variable gross salary in the 12 months prior to the month in which the holiday pay is taken. If an employer gives a few extra holiday days to an employee of his own volition, i.e. on top of the statutory days, he is not obliged to pay ‘holiday pay’ for these days. Unless he has stated that he will.

Rectification and compensation

It is worth noting that, if an employer has paid out holiday money incorrectly, an employee has almost unlimited time to apply to have the error rectified. On the other hand, an employer can compensate for employee debts (unpaid expenses for sandwiches, etc). via double or departure holiday pay to be paid to the employee. This type of compensation, however, is legally impossible with the gross monthly wage, termination allowances, premiums, etc.

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