What is the Holiday Allowance?
According to the legislation, each employee is entitled to 22 working days of vacation per year, to be taken consecutively or interpolated, provided that one of the periods is 10 consecutive working days and there is an agreement between the employer and the employee. There may also be an additional 3 days to the vacation period in specific circumstances.
When employees take vacations, they receive a salary as if they were working 99 acres phone number data an extra amount (vacation allowance) to compensate for extra expenses. This amount is subject to IRS and Social Security withholdings, in the same way as regular salary. The vacation allowance can be paid in two ways:
Before the start of the holiday period, unless there is a written agreement between the parties that defines otherwise;
Proportionally, if the employee takes vacations in different periods.
How is the Holiday Allowance Calculated?
Calculating holiday pay is quite simple: the employee's base salary plus bonuses, exemption from working hours, night work and shift work is used as a reference. Travel allowances, food allowances, transport allowances and representation allowances are not included in this calculation basis. The amount obtained through this calculation is subject to social security tax and IRS withholding, in accordance with the Labour Code .
