To know when you’re entitled to receive vacation allowance, it’s important to first understand the difference between vacation pay and vacation allowance. Vacation pay is what you receive when you’re on vacation. It consists of your regular salary plus an additional amount. This means you get slightly higher pay for a vacation day than for a regular workday. This is to encourage people to take vacation and get the rest and break needed from work.
Vacation allowance is the compensation you’re entitled to for the vacation days you haven’t taken. If you choose to save your vacation days, or if you leave a job and still have vacation days you haven’t taken, you’re entitled to vacation allowance for those days.
When do you receive vacation allowance?
You receive your vacation allowance when you:
- leave your job and still have unused vacation days.
- have a type of employment where you aren’t entitled to paid vacation leave.
- work shorter assignments, for example, if you’re employed by the hour or work on a project without any fixed vacation.
If you have a permanent employment, you usually receive your vacation allowance when you leave your job. At that point, you receive the allowance either together with your final salary or as a separate payment. It depends on the employer’s routines.
When you have a permanent job
When you have a permanent employment, you usually receive paid vacation instead of vacation allowance. This means that on your payslip, you’ll see how many paid vacation days you’ve earned and saved from previous periods. You won’t normally see the exact amount of allowance for those days.
According to the Swedish Annual Leave Act, your employer isn’t allowed to pay out your vacation allowance continuously if you have a permanent employment without an end date. When you resign, or if you’re terminated, you’re entitled to receive vacation allowance for the vacation days you’ve earned but not taken.
Vacation allowance is usually calculated as follows:
- Earned vacation days × daily wage × vacation supplement
If you’re terminated during a probationary period, or if your employment ends without you having worked a full vacation year, you’re still entitled to vacation allowance for the time you’ve worked.
Vacation allowance for short-term assignments
For temporary employment, for example in healthcare, retail, or the restaurant industry, the employer often pays out vacation allowance together with your salary. In that case, your payslip should clearly specify the amount of the allowance when it’s paid. It’s usually an additional 12 percent of your salary.
Do you need legal help?
We have several lawyers who can help you in this area. Book an appointment with one of them in the Kliently app, or contact us to hire one of the lawyers. We recommend: Dlovan Kassab,
Samir Baraka