Holiday bonus pay in Finland (lomaraha)

Short answer: the holiday bonus in Finland is usually 50% of your holiday pay, paid on top of your normal salary. It comes from your collective agreement or employment contract, not from the Annual Holidays Act.

Detailed explanation

The holiday bonus, also known as vacation bonus, is a benefit that many Finnish employees receive in addition to their regular salary during vacation. This is separate from vacation pay (lomapalkka), which is simply your normal salary paid during your holiday. Lomaraha is an additional bonus on top of that.

Unlike vacation pay, the holiday bonus is not required by Finnish law. It's a benefit that comes from collective agreements or individual employer policies. Most collective agreements include provisions for lomaraha, so many Finnish employees do receive it. The typical amount is 50% of your vacation pay, essentially giving you 1.5 times your normal salary for your vacation period.

The timing of the holiday bonus varies. Some employers pay it before the summer vacation, others pay it when you return, and some split it across the year. Your collective agreement or company policy will specify when and how it's paid. Some agreements also allow converting lomaraha into extra vacation days instead of money.

How it affects expats

• Check your TES: Not all positions include a holiday bonus, so verify what applies to your role
• Don't assume: If coming from a country without this benefit, it might be a pleasant surprise
• Negotiation point: If no TES applies, you might negotiate lomaraha into your contract
• Tax implications: the holiday bonus is paid as wages and withheld like the rest of your pay
• When leaving a job: unused accrued annual leave is paid out as statutory holiday compensation (lomakorvaus). That is separate from the holiday bonus, which depends on your collective agreement, so check your TES for whether the bonus is also paid proportionally

Typical values

• Standard rate: 50% of vacation pay (from most TES agreements)
• Example calculation: If your monthly salary is 3,500 euros and you take one month of vacation, you'd receive approximately 1,750 euros as holiday bonus
• Payment timing: Usually May-June (before summer vacation) or upon return from leave

Practical example

An employee with a 4,000 euro monthly salary takes 4 weeks of summer vacation: Vacation pay: 4,000 euros (regular salary during vacation); Holiday bonus: 2,000 euros (50% of vacation pay); Total: 6,000 euros for the vacation month

Our guide on how to calculate holiday pay in Finland walks through the three calculation methods.

How to find out if you get it

1. Check your employment contract for a reference to a collective agreement (TES).
2. Read the holiday pay section of that agreement: it states the percentage, the conditions and the payment date.
3. Look for a separate "lomaraha" line on the payslip in the month it is paid.
4. If your contract mentions no agreement, ask your employer, since without a TES or a contract term there is no automatic entitlement.

For the statutory part of holiday pay and how the amount is built, see the Annual Holidays Act on Finlex and our holiday pay guide.

Related terms

• Collective agreement (TES) - Industry-wide minimum employment conditions in Finland, set by collective bargaining
• Annual leave (Vuosiloma) - Paid vacation days accrued while working
• Palkka (Salary) - Finnish term for salary or wages
• Payslip (Palkkalaskelma) - A breakdown of your salary, deductions, and payments for a pay period