The amount of the vacation allowance may vary, depending on the Collective Agreement, but must not be less then the employee’s current remuneration.

The allowance is proportional to the leave entitlement, having as basis 22 days.

Number of days entitled * reference remuneration / 22 = Vacation allowance amount

The reference remuneration is the sum of the employee’s fixed remuneration.

If the employee is entitled to more then 22 vacation days, the vacation allowance is equal to the reference remuneration; if the employee is entitled to less the 22 days (for example, newly hired), the vacation allowance amount will be less than the reference amount and proportional to the worked days.

For employees with a high variable component (sales commissions, shift allowance and so on), the system calculates the average of the variable component and adds it to the reference remuneration when calculating the vacation allowance.

Build the reference remuneration