How is the employee's holiday pay calculated?

Verified 31 July 2023 - Legal and Administrative Information Directorate (Prime Minister)

During your leave, you don't receive your salary.

However, you receive paid leave.

Elements of your gross earnings that are considered or not considered in the calculation of your vacation pay

Not all elements of your gross earnings are included in the calculation of your vacation pay.

Tableau - Amounts taken into account and not taken into account to determine the compensation for your paid leave

Sum

Taking into account

Salary basic

Yes

Wage increase (overtime, night work, etc.)

Yes

Salary replenished during periods treated as actual work (maternity leave, paternity and childcare leave or work stoppage for industrial accident or occupational disease for example)

Yes

Paid leave allowance of the previous year

Yes

Seniority premium (if not paid for the year, periods of work and leave combined)

Yes

Monthly attendance premium

Yes

On-call premium

Yes

Sales Commissions

Yes

Expatriation grant

Yes

Benefits in kind

Yes

End-of-year bonus

No

Incentive

No

Balance sheet premium

No

Participation premium

No

Business Expenses

No

13e month (if not paid for the year, including periods of work and leave)

Yes

Partial activity

Yes

Financial contribution for the non-compete obligation

Yes

Allowances of termination of contract (so-called precarious pay) for a fixed period

Yes

Termination benefits of acting contract

Yes

Calculation of your paid leave allowance according to 2 calculation methods

Your paid leave allowance is calculated by comparing 2 calculation methods:

  • According to 1re method (called the 1/10e), your vacation pay is equal to 1/10e of your total gross remuneration received during your reference period
  • According to 2nde method (called the maintenance of wages), your paid leave allowance is equal your remuneration that you would have received had you continued to workr

That's the amount most advantageous which is paid to you.

In making this calculation, your employer may take into account:

  • The actual time of the month is the fairest method recognized by the case law
  • Or the average number of working days (or worked)
  • The actual number of working days (or working days)

Example :

You received a salary of €21,840 gross during your reference period taken into account for the calculation of your allowances (either €1,820 per month).

You take 2 weeks of paid leave. The 2 calculation methods are as follows:

Tableau - Methods of calculating the holiday pay

Salary maintenance method

1/10 methode

Taking into account the actual time of the month (7 hours per day) during a month that has 21 working days, the actual number of hours worked in the month is fixed at 147 hours (21 x 7) and the number of hours not worked due to paid leave at 70 hours (10 x 7).

The calculation is as follows: 1 820 x (7x10) / (7x21) = €866.66

The 1/10 calculatione of gross remuneration is as follows: (21 840/10) = €2,184 for leave of 30 working days (or 25 working days).

For a fraction of 2 weeks' leave, the calculation is as follows:

  • in working days (12 days): (21 840/10) x (12/30) = €873.60
  • in working days (10 days): (21 840/10) x (10/25) = €873.60
  • You then receive the most favorable amount, either €873.60 for your 2 weeks of paid leave.

    FYI  

    the holiday pay is paid on the usual date of payment of your salary. The dates of your paid leave and the amount of the corresponding paid leave allowance must appear on your pay slip.

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