/ 25

divisor for monthly pay

2 or 2.5

vacation days per month

9 % / 11.5 %

for hourly pay

50 %

holiday bonus (per agreement)

How is holiday compensation calculated?

For a monthly-paid employee the compensation is the monthly salary divided by 25 and multiplied by the number of unused vacation days. For weekly pay the divisor is 6. For hourly and commission pay the compensation is a percentage of the year’s earnings: 9 percent if the employment lasted under a year, and 11.5 percent if at least a year.

How much vacation accrues?

Vacation accrues at 2 days per full holiday-earning month if the employment had lasted under a year by the end of the holiday year on 31 March, and 2.5 days per month if at least a year. A full month means at least 14 working days or 35 working hours.

The holiday bonus is not statutory

The holiday bonus (lomaraha, lomaltapaluuraha) is typically 50 percent of holiday pay, but it comes from the collective agreement rather than the law. On termination it is often paid only if the employment ends for a reason not attributable to the employee. Check your sector’s agreement before counting on it.

• ·Final pay is normally due on the last day of employment unless agreed otherwise.
• ·Holiday compensation is taxable earned income and tax is withheld from it.
• ·A large one-off payment can push up your withholding rate — consider a new tax card.
• ·Ask for a payslip showing the breakdown.