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Calculation of holiday pay in Estonia (7 comments)

The holiday pay must be paid to the employee no later than on the penultimate working day before the start of the holiday. By mutual agreement of the parties, the holiday pay may also be paid to the employee on the next pay day, but since then the payment of the holiday pay is no longer permitted. In addition to the annual leave, the leave may also be additional leave, study leave or parental leave.

How to calculate holiday pay?

Holiday pay is calculated on the basis of the employee’s earnings during the six previous months. To be able to take leave with full holiday pay, the employee must have worked in the company for at least 6 months. In the case of holiday pay, days when the employee did not work for a good reason, was ill or on holiday, and public holidays are not taken into account. The amount of holiday pay is obtained by taking 6 monthly salaries and the number of 6-month calendar days, then dividing the amount of pay by the number of calendar days and getting the average calendar day pay, which in turn is multiplied by the number of calendar days of vacation. If the employee was paid a fixed salary during the six months or less than six months preceding the month in which the holiday pay is calculated, the average daily calendar pay is not calculated, and the employee shall be paid a fixed salary as a holiday pay.

Simple example

The employee’s leave lasts between 07.06. 2021 – 20.06.2021 (2 weeks). The employee has worked in the company for more than six months and the gross salaries for the last six months totalled 10,200 euros. During the last six months, the employee had a sick leave from 01.03 to 05.03, i.e. 5 calendar days. We take 10,200 euros (6-month gross salary) and calculate for 182 days (6-month calendar days from December to May, because the holiday starts in June). Within this period, there were also 6 public holidays. Thus, the calculation of the remuneration for one holiday day is as follows: 10,200 / (182 – 5 – 6) = 59.65 €. If the employee is on holiday for 2 weeks, then we can calculate the total holiday pay as follows: 59.65 € x 14 = 835.1 € (gross).

See also the SimplBooks guide “How to calculate employee’s holiday pay in SimplBooks”.

ATTENTION! The topics and articles in SimplBooks blog may not be legally accurate and we recommend to consult with a professional. The authors of SimplBooks do their best, but do not take any responsibility for mistakes in the articles. Laws that change over time must also be taken into account.

Comments (7)

  • Casimiro Reply

    Hello, so the employee receives the normal salary while on vacation, plus the vacation pay, right?

    22/09/2021 at 18:59
    • Rene Meres Reply

      Sorry for the late answer. No, the employee receives only the vacation pay, which will replace the salary for this period.

      14/06/2022 at 16:41
      • Eric Reply

        I’m quite shocked Estonian labor law doesn’t actually give employees vacation pay ON TOP of normal salary. Because now these vacation days are effectively unpaid vacations. In Finland you get your normal salary and then vacation pay on top and I’m sure most countries operate like this.

        28/12/2022 at 16:32
  • Nick Reply


    If 14 consecutive days are mandatory and it has 2 Weekends, those weekend are also included or how ?

    05/09/2022 at 14:11
    • Rene Meres Reply

      Hello Nick!
      Yes, those weekends are also included.

      05/09/2022 at 14:13
  • Sean Reply

    Hello, as I understood out of 28 vacation days 14 should be consecutive, which means 4 weekends are included. So other than that it should be possible to use other 14 days any time and do not include weekends.
    I have a situation, where I booked 5 days Mon-Fri, but was calculated as 7 days, including Sat and Sun. At the same time when I booked 3 days Wed-Fri, it was calculated as 3 days by accountant.
    Can you clarify about how the rest of vacation days besides 14 consecutive should be taken ?

    02/01/2024 at 11:25
    • Rene Meres Reply

      Hi, Sean
      Sorry for the late answer.
      The main annual leave can be divided into parts by agreement between the parties. In such a case, at least one part of the leave must be a minimum of 14 consecutive calendar days. The employer may refuse to divide the main annual leave into periods shorter than seven days, but by agreement, a main annual leave shorter than seven days is still permissible. So in your case, it depends on your agreement with the employer.
      There can be also exceptions (for example if you have kids).

      23/04/2024 at 12:05

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