In Finland there is holiday pay, holiday bonus and holiday compensation. They differ from each other so it is good to know what they actually mean.
Holiday bonus is an extra bonus for employee. It is not prescribed by law but it is written in many collective agreements in Finland. Usually it is 50 percent of gross salary and it is paid when employee gets back to work their annual vacation. For example, if employee has a salary of 2000€, then holiday bonus is 1000€.
Holiday pay is determined after previous holiday determination period. In Finland annual vacation is calculated annually from beginning of April to end of March next year. The amount of holiday pay is determined of the month worked during that period. Employees with monthly/weekly salary and works every month at least 35 hours earns normal salary during holiday. Others than weekly/monthly workers have different regulations. You can find those regulations here. (In Finnish)
Holiday compensation is compensation of unused holidays. For example employer has to pay the compensation when employee resigns and has holidays still left. At that time it is compensation in money.
We will send you articles keeping you up to date with the latest trends and developments in accounting, taxation or legal fields.