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Holiday pay refers to the wages or salary to which the employee is entitled during his or her annual holiday. At least the regular or average wages or salary is paid for the period of annual holiday. As a rule, holiday pay must be paid before the holiday begins. However, wages for holiday periods of up to six days can be paid on the normal pay day.
Employees on a monthly or weekly salary
Weekly and monthly paid employees receive their normal salary for the duration of the holiday. Non-temporary pay supplements are added to holiday pay based on the coefficients in the Annual Holidays Act.
Employees on an hourly wage or piecework pay
Holiday pay for hourly wage and piecework pay is usually determined on the basis of coefficients according to the average daily pay and the number of days of holiday if the employee works at least 14 days during a calendar month.
The average daily pay is obtained by dividing the pay for the period of employment during the holiday accrual year (1 April to 31 March) (minus the supplements for overtime) by the number of days worked. One eighth of the overtime worked is added to this figure. The average daily pay is multiplied by the coefficient corresponding to the number of days of holiday in the table.
Number of days of holiday
Coefficient
2
1,8
3
2,7
4
3,6
5
4,5
6
5,4
7
6,3
8
7,2
9
8,1
10
9,0
11
9,9
12
10,8
13
11,7
14
12,7
15
13,6
16
14,5
17
15,5
18
16,4
19
17,4
20
18,3
21
19,3
22
20,3
23
21,3
24
22,2
25
23,2
26
24,1
27
25,0
28
25,9
29
26,9
30
27,8
If the employee has more than 30 days of holiday, the coefficient is increased by 0.9 for each day of holiday.
Employees working less than 14 days a month
Employees subject to the so-called 35-hour earnings rule and employees who receive a pay other than weekly or monthly salary are paid a percentage-based annual holiday pay.
If the employment relationship has lasted less than one year by the end of the holiday accrual year, the amount of annual holiday pay is 9% of the wages paid during the previous holiday accrual year, minus any supplements for emergency work and overtime work. If the employment relationship has lasted longer than a year by 31 March, the annual holiday pay percentage is 11.5%.
