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How to calculate holiday pay in Finland

Finnish holiday pay: monthly pay continues, hourly staff get average daily pay times a coefficient, others get 9 or 11.5 percent of the year's wages.

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Your holiday pay in Finland depends on how you are paid. On monthly or weekly pay, your normal pay continues during the holiday. On hourly or performance pay with at least 14 working days a month, you get your average daily pay multiplied by a coefficient. Everyone else gets 9 percent of the wages earned during the holiday credit year, or 11.5 percent once the employment has lasted at least one year. The Occupational Safety and Health Administration sets out all three methods on its holiday pay page. The holiday bonus (lomaraha) is a separate payment that comes from collective agreements, and the Annual Holidays Act does not require it.

Who uses which method

Pick your method from the way your pay is set in your contract:

Your payYour working patternMethod
Monthly or weekly salaryAnyNormal pay continues
Hourly or performance payAt least 14 days in each calendar monthAverage daily pay times a coefficient
Hourly or performance payFewer than 14 days a month, holiday earned through the 35-hour rulePercentage of the year's wages
AnyToo few days and hours to earn holidayHoliday compensation of 9 or 11.5 percent

A collective agreement can set different rules for your sector, so check it if one applies to your job.

Holiday days and the holiday credit year

Holiday accrues over the holiday credit year, which runs from 1 April to 31 March. The Occupational Safety and Health Administration's annual holidays page sets the accrual rate:

Employment by 31 MarchHoliday per full holiday credit month
Less than one year2 days
At least one year2.5 days

A full holiday credit month is a month with at least 14 working days, or at least 35 working hours for employees whose contract means they do not reach 14 days a month. Holiday days are counted in weekdays including Saturdays, so a full year at 2.5 days gives 30 days, which is five weeks. Collective agreements can give more.

Employees who work so little that they do not earn holiday are entitled to time off and holiday compensation instead.

Method one: monthly or weekly pay continues

An employee on weekly or monthly pay has the right to receive that pay for the duration of the annual holiday. For a monthly salary of 3,000 euros, the pay for a holiday month is the normal 3,000 euros. The payslip looks much like any other month.

Method two: average daily pay and the coefficient

Employees paid by the hour or by performance who work at least 14 days per calendar month receive holiday pay based on their average daily pay. The average daily pay is calculated from the wages for time at work during the holiday credit year, excluding overtime and emergency work increments, divided by the number of days worked.

That figure is then multiplied by a coefficient from the table in section 11 of the Annual Holidays Act. The coefficient grows with the number of holiday days earned, and you read it from the row for your own number of days.

Method three: a percentage of the year's wages

Employees who are not covered by the first two methods receive holiday pay as a percentage of the wages paid for time at work during the holiday credit year. The holiday pay page gives the two rates:

Employment by the end of the holiday credit yearHoliday pay
Less than one year9 percent
At least one year11.5 percent

This method covers hourly and performance-paid employees who earn holiday under the 35-hour rule. Overtime increments are left out of the wage base. As an example, an employee with 18,000 euros of wages for time at work over the credit year and more than one year of service receives 11.5 percent, which is 2,070 euros of holiday pay.

Holiday compensation when employment ends

When employment ends, unused holiday is paid out as holiday compensation on the final pay. The same calculation rules apply. Employees who did not earn holiday days during the credit year receive holiday compensation of 9 or 11.5 percent of their wages.

How employment ends, including notice periods, is covered in termination of employment contract in Finland and statutory notice periods in Finland.

The holiday bonus

The holiday bonus is agreed in collective agreements. Many agreements set it at 50 percent of the holiday pay, paid in connection with the holiday, and some add conditions such as returning to work on time after the holiday. If no collective agreement applies to your job and your contract does not mention a bonus, you have no right to one. The exact calculation and the day it is paid follow your collective agreement, so check it or ask your shop steward.

Payment date and the holiday payslip

Holiday pay must be paid before the holiday starts. For a holiday of no more than six days, it can be paid on the normal payday. When holiday pay or compensation is paid, the employer must give a holiday payslip showing the amount and how it was calculated.

Deadline for claims

Unpaid holiday pay and holiday compensation expire in two years. The Occupational Safety and Health Administration states that the period is calculated from the end of the calendar year during which the annual holiday should have been granted. For a summer 2026 holiday, the claim expires at the end of 2028. If you find an error on an old payslip, check that deadline first.

Tax on holiday pay

Holiday pay and the holiday bonus are taxed as salary under your tax card. A bonus paid in the same month as the salary makes that month's taxable pay larger. If your total earnings for the year go over the income limit on the tax card, the additional withholding rate applies to the excess. Check the income limit in MyTax before the summer if the bonus is likely to push you over it.

The law behind it

The Annual Holidays Act (vuosilomalaki 162/2005) sets out how holiday is earned, the three calculation methods, holiday compensation and the timing of payment. It is available in English translation on Finlex. For more on your rights at work, see the employee rights guide.

The date that matters falls on 31 December of the second year after the year your holiday should have been granted: after that date, unpaid holiday pay can no longer be claimed.

Frequently asked questions

How is holiday pay calculated for a monthly salary in Finland?

Your monthly or weekly pay simply continues for the days you are on holiday. A 3,000 euro monthly salary stays 3,000 euros in a holiday month (Työsuojelu, holiday pay).

What is the holiday pay percentage in Finland?

The rate is 9 percent of wages for time at work if the employment has lasted under one year by the end of the credit year, and 11.5 percent after that. Overtime increments are left out of the base (Työsuojelu, holiday pay).

How many holiday days do you earn in Finland?

In the first year you earn two days for each full holiday credit month, and two and a half days once the employment has lasted a year by 31 March. Twelve months at the higher rate add up to 30 weekdays, or five weeks (Työsuojelu, annual holidays).

Is the holiday bonus (lomaraha) required by law in Finland?

The Annual Holidays Act has no holiday bonus. The bonus exists only where a collective agreement or your contract provides for it (Annual Holidays Act on Finlex).

How long do I have to claim unpaid holiday pay in Finland?

You have two years, counted from the end of the calendar year in which the holiday should have been granted. A holiday due in 2026 can be claimed until the end of 2028 (Työsuojelu, holiday pay).

Sources

Last updated: October 2026

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