Calculating vacation pay in Sweden, Finland, Estonia and Latvia

Vacation time is approaching fast and for some it’s already here, so it’s high time to remind ourselves that the way in which vacation pay is calculated varies from country to country. In the following article, we will take a look at how employee vacation pay is calculated in Sweden, Finland, Estonia and Latvia.

 

Sweden

In Sweden, the holiday year runs from April 1st to March 31st, and employees are entitled to 25 vacation days, whereas weekends are not counted as vacation days. If an employee starts working after August 31st, then they are only entitled to 5 vacation days that year. One can also leave a certain number of vacation days unused and they can be carried over for up to 5 years.

Vacation pay is calculated according to this formula: 25 x number of days worked during the holiday year / 365 (366 in leap years).

In Sweden, vacation pay is 12% of the employee’s gross salary, it accumulates during the whole year into the vacation pay reserve and is paid out once the employee goes on vacation.

During summer months (June, July and August), employers are obligated to provide each worker with four consecutive vacation weeks.

If you need help calculating either vacation days or pay, we are glad to help and the fee is based on our regular accounting hour. To make the work go smoother, please send us the employee’s employment contract, information about how many days the person has worked during the year for which the pay is calculated, and the A-Tax certificate.

 

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Finland

In Finland, the holiday year runs from April 1st to March 31st, and the number of days an employee is entitled to depends on the number of years they have worked. If the employee’s contract has lasted less than 1 year by March 31st, they are entitled to 2 vacation days per worked month, and if the contract has lasted over a year, it is 2,5 days per month worked.

Saturdays are counted as vacation days, and generally the rule is that summer vacations are used up between May and September and winter vacations between October and April. However, the parties can also come to an agreement on a different vacation schedule.

So, simply put – an employee, who has been working for an employer over a year can take out 4 weeks of vacation in the summer and 1 week in the winter.

Exceptions apply to calculating the vacation time of part-time workers. In order to earn vacation days, the employee has to work at least 14 days or 35 hours per month.

The vacation pay is calculated according to the salary in the employment contract, and generally it is equal to the regular salary, but here again there are exceptions for part-time workers, who also get a vacation compensation (9% to those, who have worked less than a year, and 11,5% to those, who have worked longer).

Usually, vacation pay is paid out before the start of the vacation, however, the pay for a one week vacation can be paid out on the regular pay day.

Of course, in calculating and paying the vacation pay, there are also many exceptions related to collective agreements, so before calculating vacation time and pay, it is definitely necessary to look at the Finnish vacation law and the collective agreements of the field in question.

If you need help calculating either vacation days or pay, we are glad to help. To make the work go smoother, please send us the employee’s contract, their personal tax card, the period for which vacation is calculated and the number of days (or hours) based on which the vacation will be calculated.
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Estonia

In Estonia, vacations are calculated according to a working year, which begins when an employee starts work with the employer. The main vacation is usually 28 days and it is calculated in calendar days. An employee who has worked at least 6 months during the first working year is entitled to a vacation for each month worked.

Vacations are generally given according to a vacation schedule, which the employer makes available for the employees within the month of January. The parties can agree to any changes in the schedule.

In general, the vacation schedule is drafted according to the interests of the employers, but if possible the employees interests should also be considered. Vacation days can be taken in parts, however, during the year one part has to be at least 14 consecutive days.

Vacation pay is calculated according to the daily wage of the employee, which is calculated based on the entire salary sum of six months preceding the vacation.

If you need help calculating either vacation days or pay, we are glad to help and the fee is based on our regular accounting hour.

 

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Latvia

In Latvia, a vacation is at least 4 weeks and those employees whose contract with the employer has lasted at least 6 months are entitled to vacation days.

Vacations are given out according to a vacation schedule, which the employer drafts taking into account the employee’s wishes, if possible. The vacation can be taken out in parts, however, each year one part has to be at least 14 consecutive days.

Vacation pay is calculated based on the employee’s average salary over the previous six months.

If you need help calculating either vacation days or pay, we are glad to help and the fee is based on our regular accounting hour.

 

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