Skip to content

Home Holiday compensation prevents the payment of earnings-related daily allowance

Holiday compensation prevents the payment of earnings-related daily allowance

Topics

  • Income security

If you have unsolicited holidays when the employment relationship ends, the employer will pay you compensation for the unsolicited holidays. When you receive holiday compensation, we cannot pay earnings-related daily allowance for the same period.

When there is an obstacle to the payment of earnings-related daily allowance, we will give you a negative decision. One of the most common negative decisions is due to holiday compensation. When you are paid holiday compensation, we cannot pay earnings-related daily allowance for the same period.

The holiday compensation does not completely prevent the payment of earnings-related daily allowance. The holiday compensation also does not reduce the maximum payment period for earnings-related daily allowance.

Accrual of holiday compensation

According to the law, when a full-time employment relationship lasting more than two weeks ends, the holiday compensation payable under the law or a collective agreement prevents the granting of unemployment benefits for the period If the holiday compensation is paid after the end of the employment relationship, the benefit can be calculated from the date of payment of the holiday compensation. If the holiday compensation is paid after the end of the employment relationship, the benefit can be calculated from the date of payment of the holiday compensation.

Holiday compensation therefore prevents us from paying you earnings-related daily allowance for the period corresponding to the holiday compensation. For example, if you receive holiday compensation equivalent to one month’s salary, we can only pay you earnings-related daily allowance after one month.

The calculation is made by adding up the wages for the 12 months preceding the end of the employment relationship and dividing that sum by the number of working days in those 12 months. The number of working days for full months of employment is 21,5 days. If the employment relationship began or ended in the middle of a month, the number of working days for that month is the actual number of working days. If the employment relationship lasted less than 12 months, the calculation is made for the duration of the employment relationship.

Once we have calculated your daily wage, we divide the amount of holiday compensation you are entitled to by this daily wage. We round down the remainder to full days. The result is the number of days for which we cannot pay earnings-related daily allowance.

The adjustment period is not calculated in calendar days, as the total number of unemployment benefit days and work, personal liability, and compensation days in each calendar week cannot exceed five. In practice, the adjustment period is therefore a maximum of five days per week.

The suspension period set by the employment authority and the holiday compensation adjustment period can run concurrently. However, the waiting period and the holiday compensation adjustment period cannot run concurrently, as only days for which earnings-related daily allowance can be paid can be counted as part of the waiting period.

Example

  • Your full-time employment relationship, which has lasted for more than two weeks, will end on 31.12.2025
  • You have unused accrued vacation days, and therefore your employer will pay you 1 500 € in vacation compensation
  • Your salary has been 3 000 €/month
  • Your calculated daily wage is 139,53 € (3 000 € / 21,5)
  • We divide the holiday compensation by the calculated daily wage (1 500 € / 139,53 €)
  • The remainder is 10,7. We round this down, giving a result of 10
  • You are not entitled to earnings-related daily allowance for 10 days from the end of your employment, so we cannot pay you earnings-related daily allowance for the period 1.1.-14.1.2025 due to the accrual of holiday compensation.
  • The waiting period does not expire during the accrual of holiday compensation.
  • The seven-day waiting period expires between 15.1.-23.1.2025
  • We can start paying earnings-related daily allowance after the weekend of 24.-25.1.2025, starting on 26.1.2025