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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 amounts taken into account and not taken into account in determining the allowance for your paid leave

Sum

Taking into account

Salary basic

Yes

Salary increase (overtime, night work, etc.)

Yes

Salary reconstituted for periods assimilated to actual work (maternity leave, paternity leave and child care leave or work stoppage for work accident or occupational disease for example)

Yes

Paid Leave Allowance of the previous year

Yes

Seniority Award

Yes

Monthly attendance bonus

Yes

Severance pay

Yes

Trade Commissions

Yes

Expatriation grant

Yes

Benefits in kind

Yes

Year-end bonus

No

Interest premium

No

Balance sheet premium

No

Participation Award

No

Professional

No

13e month

No

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

Example :

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:

Methods for calculating the paid vacation allowance

Salary Maintenance Method

Method 10e

Taking into account the actual time of the month (7 hours per day) in 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 the paid leave at 70 hours (10 x 7).

The calculation is as follows: 1820x (7x10) / (7x21) = €866.66.

The calculation of 1/10e of the gross remuneration shall be as follows: (21 840/10) = €2,184 for a period of 30 working days (or 25 working days).

For a fraction of 2 weeks of 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 receive the most favourable amount, either €873.60 for her 2 weeks paid vacation.

Please note

by exception a usage may provide a more favourable method of calculation.

FYI  

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.