Holiday entitlement: how to calculate it correctly

Holiday is an essential part of working life. It helps people recover and protects their ability to work in the long term. But how do you calculate holiday entitlement correctly? This blog post gives you an overview of the key rules and formulas. It also shows how cleverlohn can help you keep track.
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Statutory minimum holiday: the basics

In Germany, the Federal Holiday Act (Bundesurlaubsgesetz, BUrlG) sets the statutory minimum holiday. For a 6-day week, it is at least 24 working days per year. Since Saturday counts as a working day, this equals four weeks of holiday. For a 5-day week, the minimum entitlement drops to 20 working days per year.

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How do you calculate holiday entitlement?

Holiday entitlement depends on the number of working days per week and the length of employment. Here are the most important formulas:

  1. Holiday entitlement for part-time work or a different number of working days per week

    Holiday entitlement = working days per week x (annual holiday/5)Example: A part-time employee works three days a week with an annual holiday of 20 days (based on a 5-day week):
    3 x (20/5) = 12 days of holiday
  2. Holiday entitlement when employed for part of the year
    If the employment does not last the whole year, holiday is calculated pro rata:

    Holiday entitlement = (annual holiday/12) x number of full months of employment

    Example: An employee with an annual holiday of 24 days starts on 1 April. The calculation is:
    (24/12) x 9 = 18 days of holiday
  3. Holiday entitlement when joining during the year Employees who only join in the second half of the year do not acquire the full annual holiday entitlement. To make up for this, they should be able to take their partial holiday entitlement in the same calendar year. The exception is if they choose to carry it over to the following year under § 7 para. 3 sentence 4 BUrlG to combine it with the full holiday entitlement of the new year.

Special cases: what applies during illness or parental leave?

  • Illness during holiday: If an employee falls ill during their holiday, these days do not count as holiday under § 9 of the Federal Holiday Act. Instead, the employee receives continued pay during illness.
  • Parental leave: During parental leave (Elternzeit), the employer can reduce the holiday entitlement by one twelfth for each full calendar month (§17 BEEG).

How cleverlohn helps you with the calculation

Calculating holiday entitlement correctly can be a challenge, especially in complex cases such as part-time work, joining during the year or special arrangements. This is where cleverlohn comes in:

  • With cleverlohn, you can manage payroll digitally, including all relevant data.
  • Automated processes and online personnel master sheets help you keep track, even with variable working hours and special cases.
  • Dedicated contacts are on hand to answer your individual questions, whether about calculating holiday entitlement or other HR topics.

Conclusion

Calculating holiday entitlement is an important topic for employees and employers alike. With the right formulas and tools like cleverlohn, the task becomes much easier. This way you can make sure all entitlements are recorded correctly. Then you can focus on what really matters: taking a break!

Sources

Federal Holiday Act (BUrlG)

Federal Parental Allowance and Parental Leave Act (BEEG)

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