The worker shall be entitled to paid annual leave for each calendar year pursuant to Article 81 of the Labour Act (OG 93/14, 127/17, 98/19).
The salary compensation is determined by a collective agreement, working regulations or employment contract, which may not be less than his average monthly remuneration over the previous three months, counting any benefits in cash or in kind which represent compensation for work.
The employers should determine what is more favourable for the worker based on a mathematical calculation according to internal acts. For a worker who has the same salary during the previous three months when using the annual leave, the salary compensation will not be changed. For a worker whose nature of work is such that he has to work overtime or at night, on Sundays and holidays and accordingly earns a different salary each month, the calculation of salary compensation during annual leave is significantly different and he shall be entitled to the average monthly salary paid in the previous three months.
When determining the salary compensation during the annual leave, all incomes in cash and in kind are included:
- the basic salary determined by the employment contract, collective agreement and similar acts, paid in cash or in kind;
- salary supplements for overtime work, work on Sundays and holidays, night work, etc.;
- salary increase for arduous working conditions;
- past service;
- stimulating part of the salary if it is determined as a reward for achieving greater work results, whereby the criteria for determining it are communicated to the employee in advance.
All other non-taxable or taxable payments which do not represent salaries for work, such as compensations, grants, gifts, transportation from and to work, jubilee awards, convenient awards, sick leave supports, are material rights of workers and do not form an integral part of workers’ salaries and they cannot be part of the average on the basis of which the salary compensation shall be determined during the annual leave.
The employer must first determine the number of days of annual leave that the worker is entitled to use in order to determine the salary compensation for annual leave.
The employer must first determine the number of days of annual leave that the worker is entitled to use in order to determine the salary compensation for annual leave.
When calculating the salary compensation during the annual leave, it is more correct to use the number of working hours in which the annual leave is used than the average number of hours depending on the salaries paid in the previous three months. However, the calculation may be different, depending on the right of the worker, which is prescribed by special acts.
The average monthly salary paid in the last three months before going on annual leave / Numbers of hours per month in which annual leave is used X Number of hours for which salary compensation is paid
According to Article 79(2) of the Labour Act, the following shall not be included in the duration of annual leave:
- holidays and non-working days determined by law;
- a period of temporary incapacity for work established by an authorised doctor;
- days of paid leave.
By derogation from the above provisions, the duration of annual leave shall also include that day if, according to the patterns of working time, the employee should work on a holiday or non-working day determined by law, and he uses the annual leave at his own request on that day.
