Summer beckons. You're already dreaming of sun, peace and quiet and terraces. And then there is that wonderful extra: holiday pay. But while some just "like it", for many it remains a blur.
What exactly do you get? How is it calculated? And what if you changed jobs last year, got a pay rise or worked as a clerk on a temporary basis?
Those who really understand their pay packet make smarter choices. That is why we dive deeper than the clichés here. No blabla, just clear answers - so you get the most out of your holiday money (and career).
What exactly is holiday pay?
Holiday pay is provided by law as financial support during your holidays. Specifically, as a white-collar worker, you are entitled to two forms of holiday pay:
- Holiday pay only: this is your regular pay during your leave days
- Double holiday pay: an extra payout, usually in May or June, intended to finance your holidays
This double holiday pay is no favour from your employer. It is a legal right, calculated on your performance of the past calendar year.
How to calculate double holiday pay?
Although the formula is clear for white-collar workers, it does not always appear to be widely known. In a nutshell, you calculate double holiday pay by taking 92% of your May (or June) gross pay multiplied by the number of months worked in the previous year divided by 12.
For example, suppose your gross salary in May is €4,000 and you worked full-time for 11 months last year. Then the calculation is as follows:
€4,000 x 92% x 11/12 = €3,373 gross double holiday pay.
What exactly is included in this calculation? First of all, your fixed gross salary obviously counts, but recurring bonuses, such as monthly bonuses, are also included. Benefits in kind, such as a company car or meal vouchers, on the other hand, are not included in the calculation.
Please note that although some sectors have specific different rules, the legal framework described above is always the basis.
The impact of your personal situation on the calculation
Changed employers? Your holiday pay moves with you!
When you change employers, you fortunately do not lose your accrued holiday pay. Your new employer will ensure that your holiday pay continues to be accrued. Moreover, your previous employer will give you a holiday certificate so that everything remains administratively tidy. Resigned or dismissed? Then you will immediately receive your holiday pay as "departure holiday pay".
Promotion or pay rise this year?
Your double holiday pay is calculated on the gross pay in the month of payment (usually May or June). If your pay in that month is higher than last year, your holiday pay will also increase with it.
Do you work as a clerk on a temporary basis?
If so, you will be paid your holiday pay differently: you will receive it weekly together with your salary. So it is included in your pay (15.38% extra), and you will not get an additional amount in June. If this situation applies to you, it can always be useful to set aside part of your pay yourself if you plan a break in summer. That way, you won't face any surprises.
What if you did not work a full year?
Your double holiday pay is proportional to the number of months you worked last year. If you worked full-time for 6 months, you will receive 6/12 of the total.
But: some days when you didn't work will be "assimilated" and count anyway:
- Disease
- Maternity leave
- Small leave
- Certain forms of temporary unemployment
This can make a significant difference. Especially in the case of a prolonged absence, it is good to check which days were equivalent - and whether your employer communicates this correctly.
Holiday pay as a strategic tool in your career
Many professionals regard holiday pay as a fixture, something you just count on. But if you are plotting a career path or negotiating a new position, it can play a strategic role:
- Timing of job change: if you leave an employer in May, you will only get part of your holiday pay. In some cases, it pays to stay an extra month.
- Contract talks: Don't be blinded by the gross monthly salary alone. Ask about how holiday pay is calculated, especially if variable pay is in your package.
- Career break or time credit? Check in advance the impact on your next year's holiday pay. What you decide today affects your pay tomorrow.
Know your worth
Holiday pay is not a gift. It is an entitlement that you build on every month. And as a white-collar worker - especially at higher levels - it is smart to be intentional about it. It not only helps you to be paid correctly, but also to make strong, informed career choices.
Want to know exactly what your holiday pay means? Or do you want certainty in your next career move?
