Holidays on commercial sector

Check the collective agreement for the commercial sector for regulations on annual holidays. You can also ask your own shop steward at work.

How is the length of your holiday defined?

You entitled to a certain number of holidays for every full holiday credit month as follows:

You earn holidays for every full holiday credit month. A full holiday credit month is a calendar month under which

A. an employee has worked at least 14 days
B. an employee has worked at least 35 hours.

The accumulation of 35 hours in option B is used when you have under 14 working days in a month according to the work contract. 

For example: The employment has begun on May 1 and it is still ongoing. According to your work contract, you work 2 days a week, which equals to 15 hours a week and 60 hours a month. In this case, you earn holidays according to the 35-hour rule (point B). Your holiday entitlement is in this case 2 days/month, because the period of employment has lasted for less than a year before March 31.

Daily pay for annual holiday

Employees with monthly pay

If you are a full-time employee with a monthly pay, your annual holiday pay is calculated as follows:

When your monthly pay is divided by 25, your daily pay for the annual holiday is received. Your daily pay for the annual holiday is multiplied by the number of holiday days, which equals to your salary for the entire holiday period.

In addition, the share of bonuses that vary according to collective agreements are added to the holiday pay. If you have been employed for more than a year by March 31, the share of your bonuses is 12.5%. If you have been employed for less than a year, the share is 10%.

If you are a full-time contract and you have an hourly pay, your holiday pay is calculated according to the Annual Holidays Act. 

For example: By the end of the holiday credit year (March 31), you have worked for altogether 8 months. During that time, you have worked 35 hours a day during 5 months.

Your earnings for the holiday credit year between April 1 and March 31, including night bonuses and Saturday bonuses, is 5 230 euros.  You have earned annual holidays as follows: 5 × 2 days = 10 days.

In this case, your holiday pay is 10% of 5230 euros, which is 523 euros. The pay for one given holiday day is calculated by dividing the holiday pay by your holiday days as follows: 523 euros:  10 = 52.30 euros.

Employees with less than 37.5 hours of work/month

If you do not have a monthly or an hourly pay and you work at least 14 days/month on a regular basis, your annual holiday pay is defined as follows:

For example: When you have been employed for less than a year (10% of your salary)

By the end of the holiday credit year (March 31), you have worked for altogether 8 months. During that time, you have worked 35 hours a day during 5 months. Your earnings for the holiday credit year between April 1 and March 31, including night bonuses and Saturday bonuses, is 5 230 euros.

You have earned annual holidays as follows: 5 × 2 days = 10 days. In this case, your holiday pay is 10% of 5230 euros, which is 523 euros. The pay for one given holiday day is calculated by dividing the holiday pay by your holiday days as follows: 523 euros: 10 = 52.30 euros.

For example: When you have been employed for less than a year (12.5% of your salary)

A sales assistant has been employed for more than a year by the end of the holiday credit year (March 31). He/she has worked for 35 hours every month.

His/her earnings for the holiday credit year (between April 1 and March 31), including night bonuses and Saturday bonuses, is 14 640 euros. If during the holiday credit year the employee has had periods of absence as referred to in point 9, the salary calculated for that period of absence is added to the salary for the employment period.

The earnings for the period of employment do not include holiday pays or holiday bonuses.

You have earned annual holidays as follows: 12 × 2.5 days = 30 days. You are entitled to take 24 holiday days during the summer and 6 days during the winter. In this case, your holiday pay is 12.5% of 14.640 euros, which is altogether 1.830 euros.

The pay for one given holiday day is calculated by dividing the holiday pay by your holiday days as follows: 1830 euros: 30 = 61 euros. Summer holiday pay is 24 × 61 = 1 464 euros. Winter holiday pay is 6 × 61 = 366 euros.

Holiday bonus  

Holiday bonus is 50% of the salary for the holiday period. Check your collective agreement for exact information on the conditions for receiving the holiday bonus.

For example: You work 37.5 hours a week and you take 24 holiday days in the summer and 6 in the winter.

Your basic salary is 1 540 euros and you receive 5%, which is 77 euros, as monthly bonuses. Your earnings for the holiday credit year (between April 1 and March 31), including hourly bonuses (night and Saturday bonus), is 868 euros. Of this amount, 12.5%, which is 108.50 euros, is added to your annual holiday pay.

You summer holiday pay is: (1 540 e + 77 e):25 × 24 + (24:30 × 108.50 e) = 1 639.10 euros

Your holiday pay for the summer holiday is 50% of your summer holiday pay (1 639.10 euros), which equals to 819.60 euros.

Holiday compensation

Holiday compensation is a sum of money paid to the employee when there has not been enough work for the employee to earn holidays. Holiday compensation is also paid when the employment relationship of an employee is terminated before the possibility to take a holiday.

At the end of employment, the earned but not yet received holidays are paid. They are calculated the same way as the holiday pay.

If no holiday days have been accumulated, the holiday compensation is either 10% or 12.5% for the period of employment and for certain salaries paid under a period of absence. If the employee has been employed for less than a year by March 31, the payment is 10%. If the employment has lasted for over a year, the payment is 12.5%.