Accrued holiday allowance

The basic rule of the Act requires the employer to withhold the added vacation pay for each pay period until the worker goes on vacation in the next vacation year. The holiday allowance for each wage period (usually one month) is calculated in daytime working hours and stated specifically on the pay slip at the time of each wage payment, both the total of accrued holiday allowance from the beginning of the year and holiday allowance for the period in question.

The calculation is done by dividing the vacation pay (i.e. 10,17% of total wages for each wage period) by the workers regular hourly pay for day time work; thus calculating how many day-work hours the vacation pay amounts to. The employee accumulates such hours throughout the vacation year. When the worker goes on vacation in the following vacation year, the total number of these hours are multiplied by the day-work hourly pay in effect at that time. The amount thus found is paid the worker less taxes and other charges.

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