There is a lot of similar terminology associated with the holiday period and it is good to distinguish between them. Holiday compensation is not the same as holiday pay and holiday bonus. Below we go through the differences between the terms and how they affect the earnings-related allowance.
Holiday compensation
Holiday compensation affects the right to earnings-related unemployment allowance in such a way that annual holidays not taken by the end of the employment relationship will postpone the start of earnings-related unemployment allowance payments by as many days as the holiday compensation paid corresponds to the average salary for the number of working days. This is called the periodisation of holiday compensation.
The periodisation applies to full-time employment that has lasted more than two weeks and has ended. Holiday compensation paid for part-time employment are not periodised but are adjusted when the daily allowance is paid.
The periodisation of holiday compensation does not affect lay-offs, because then the employment relationship does not end completely.
The rules on holiday compensation may differ depending on your collective agreement.
Read more: Periodisation of holiday compensation
Holiday pay
Holiday pay is regular wage income paid during the period of annual leave and is taken into account when calculating the amount of earnings-related unemployment allowance. You are not entitled to a daily allowance for the period of annual holiday from full-time work.
The annual leave period for part-time work is not an obstacle to the payment of daily allowance. The holiday pay for part-time work is taken into account in the calculation of the daily allowance to be adjusted.
Holiday bonus
Holiday bonus, or end-of-holiday pay, is 50% of the holiday pay. Holiday bonus is not regular wage income and is not taken into account when calculating the amount of unemployment allowance.
The rules on holiday bonus may differ depending on your collective agreement.
Your holiday bonus for full-time work does not affect the daily allowance
Holiday bonuses paid for full-time work do not affect the payment of daily allowances. However, a holiday bonus determined for part-time work is taken into consideration when calculating the adjusted allowance.
