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Calculation of holidays - Employees with reduced hours
Calculation of holidays - Employees with reduced hours

How to calculate holidays for employees who work less than 5 days a week.

Sofie Vestergaard avatar
Skrevet af Sofie Vestergaard
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In accordance with the Danish Holiday Act, your permanent employees with paid holidays will accrue 2.08 days pr month, regardless of how many days a week they work. Therefore, the value of one day off must be calculated specifically for employees with reduced hours. If, as an example, your employee works 4 days a week, the value of one day off will be 1.25 days. Under Company -> Advanced -> Adjust holiday values after work week, you can let Salary calculate the value of holidays for employees with reduced hours automatically.

Alternatively, you can calculate the value yourself using the following method:

Example:

Employee A is hired in the beginning of April and works three days a week. In mid-August, the employee will have accrued the following:

Month

Accrued Holidays

April

2,08

May

2,08

June

2,08

July

2,08

Total

8,32

In mid-August, employee A requests one week of holidays. How many days should then be registered? The employee works three days a week and takes one week of holidays - should you then register 3 or 5 days? The answer can be found with the following calculation:

So based on our calculation, we can conclude that holidays must be registered in the same way for both full-time employees as well as those with reduced hours.

One week of holidays is registered as 5 days, two weeks as 10 days and so on, regardless of how many days the employee works.

By end-August, employee A's holiday balance will look like this:

Month

Accumulated vacation days

April

2,08

May

2,08

June

2,08

July

2,08

Opening balance

8,32

Holidays taken

5,00

New balance

3,32

Why does it work like this?

By law, one vacation day has a value of 4,8% of the monthly gross pay. If every full-time employee accrue 2,08 vacation days per month, then every employee should be treated identical, when we register vacation.

When an employee with paid vacation is terminated, the value of these vacation days must be paid to the holiday account of the employee. The more saved up vacation, the more is getting paid by termination.

The value of the vacation days is based on the monthly salary. If the employee is working three days a week and is taking one week of vacation, then the registration of 5 vacation days means that the employee is receiving around 24% of their monthly salary, which is equivalent to around 1 weeks pay:

4,8% x 5 = 24%

If we only register 3 vacation days, the employee would only receive 14,4% of their monthly salary, when the person is on vacation:

4,8% x 3 = 14,4%


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