How is holiday pay calculated?
Holiday pay is average daily earnings multiplied by the number of calendar days of leave. Average daily earnings come from dividing pay over a defined period by the days worked, and tax is withheld from the result at the rates VID publishes.
Why does this calculator show no amount?
Because the averaging period is not confirmed — how many preceding months count, and what happens if the employee was on sick leave or unpaid leave during them. Without that figure any number would be a guess, so the calculator names it and points at VID.
How many days of leave are due each year?
The Labour Law provides at least four calendar weeks a year, not counting public holidays that fall within the leave. Some groups of employees are due extra days. Holiday pay is paid before the leave begins, with tax withheld at VID rates.
Is holiday pay more or less than salary?
It usually differs from the usual salary, because it is worked out on calendar days rather than the month's working days, and average earnings include supplements and bonuses. Tax is withheld at the same VID rates, so the difference comes from the base, not the tax.