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Vacation Pay

Viimati uuendatud: 22.02.2017

The vacation pay is paid out on the second-to-last workday before the beginning of the vacation. The parties may agree that the vacation pay will be paid later, but not later than on the first salary day after the end of the vacation. Unused vacation days are monetarily compensated for only when the contract of employment is terminated.

Vacation Pay Calculation

The vacation pay is calculated based on the six months’ remuneration received by the employee prior to the vacation. The salary and calendar days of the six months are summed up. Public holidays and the days when the employee was absent for a significant reason (e.g. illness, vacation, military service, or representation of employees based on conditions stipulated in the collective agreement) are not included in this calculation.

The remuneration sum is divided by the number of calendar days, which gives the average calendar day salary. The result is multiplied by the number of calendar days of the length of the vacation. This gives us the vacation pay size.

If the employee was paid a fixed-size remuneration during the past six months (or a shorter time period) and the remuneration did not change, the average calendar day salary is not calculated and the fixed remuneration shall be paid out to the employee as the vacation pay.

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