Holiday pay (lomaraha)

Detailed explanation

Holiday pay, also known as holiday bonus or 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, holiday pay 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, which means the majority of 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 holiday pay 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 holiday pay, 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: Holiday pay is taxable income, so plan accordingly

• •When leaving a job: You may be entitled to accumulated holiday pay 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

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