How do I calculate the employee's vacation pay?
Verified 16 February 2021 - Legal and Administrative Information Directorate (Prime Minister)
During your holidays, you do not collect your salary.
However, you receive a vacation allowance.
All amounts having the salary character are taken into account in determining the vacation pay.
Other amounts are not included.
The allowance is calculated by comparing 2 calculation methods:
- According to 1mother method, the allowance is equal to 1/10e of your total gross remuneration received during reference period.
- According to 2nde method (salary maintenance), the vacation pay is equal to your pay you would have received if you had continued to work.
This is the best value you get.
The employer may consider:
- Either the actual schedule of the month, the fairest method and recognised by the jurisprudence
- Average number of business days (or worked)
- Or the actual number of working days
you have collected an employee of €21,840 gross during the reference period taken into account for the calculation of allowances (€1,820 per month).
Taking into account 2 weeks of paid leave, the calculations are as follows:
You receive the most favourable amount, either €873.60 for her 2 weeks paid vacation.
by exception a usage may provide a more favourable method of calculation.
the vacation pay is paid on the date of the regular pay. The dates of leave and the amount of the corresponding allowance must be shown on the pay slip.