The holiday allowance is not just a formality – it is a legal obligation that employers must fulfill by no later than July 1. The amount must be at least equal to the minimum wage, which for this year is €1,277.72 (or the amount specified by the binding collective agreement). This right also applies to employees who are on parental leave or long-term sick leave.
Mistakes in payment are still common. The most frequent ones include:
- varying amounts of holiday allowance without legal justification,
- failure to account for proportional entitlement,
- illegal payment in vouchers,
- and late payment.
Such errors can cost an employer significantly, up to €20,000.
If, as an employer, you are still considering different amounts of holiday allowance, you must carefully define the conditions under which such differentiation would be allowed – these conditions must not be discriminatory. You must especially avoid reducing the allowance due to an employee’s absence from work. The holiday allowance is a monetary benefit meant for rest during annual leave, to which all employees with an employment contract are entitled.
Therefore, make sure the holiday allowance is paid in accordance with the applicable legislation.
For additional assistance and advice, you can contact our experts via the INQUIRY FORM.
