How holiday pay is calculated
Holiday pay = average daily earnings × number of calendar days of leave (Art. 139 of the Labour Code; Regulation approved by Government Resolution No. 922 of 24 December 2007).
- If all 12 months were worked in full: average daily earnings = earnings for 12 months / 12 / 29.3.
- If there are partial months: earnings are divided by 29.3 × the number of full months plus the sum for the partial months — 29.3 / days in the month × calendar days worked (clause 10 of Regulation No. 922).
- Periods of illness, previous leave and downtime caused by the employer, together with payments for those periods, are excluded from the reference period.
Holiday pay must be paid no later than three days before the leave starts (Art. 136 of the Labour Code); PIT is remitted in the usual way. Compensation for unused leave on dismissal is calculated using the same formula (Art. 127 of the Labour Code).