Calculation of holiday entitlement
If an employee is entitled to vacation, you calculate the vacation entitlement
(Number of hours actually worked converted to whole weeks) / 52 (number of weeks in a year) × (number of weeks of vacation provided by your company) × fictitious working time of 20 hours/week
There are two ways to calculate the entitlement and enter the balance:
1. Entering the total annual leave entitlement in one go
You will use this method for reliable employees who you expect will actually work the agreed number of hours in the calendar year, so you will calculate the total vacation entitlement for such an employee as if they had actually worked these hours.
Example:
The employee has a contract to work 300 hours per calendar year, and you assume that he will actually work them, so you use this number in the calculation. The contract runs from 1 January 2024.
Your company provides 4 weeks of vacation.
The calculation is then as follows:
300 hours / 20 hour fictitious TPD (20 hours/week) = 15 full weeks worked
15 weeks / 52 * 4 weeks of vacation * fictitious work hours of 20 hours/week = 23.08 hours – rounded to 24 hours
So you set a one-time vacation balance of 24 hours for the employee
2. Gradual assignment of holiday entitlement based on hours worked
In this case, you will calculate and assign vacation to the employee gradually based on the number of hours they actually worked in the past month (or other period).
Example:
The employee has a part-time contract of 2 hours/day, meaning the employee will work approximately 40–46 hours The contract lasts from January 1, 2024.
Hours worked:
January 2024 - 44 hours
February 2024 - 42 hours
March 2024 - 40 hours
Your company provides 4 weeks of vacation.
This employee will be entitled to their first vacation after approximately 2 months (when he has worked 80 hours):
86 h (January 44 + February 42) / 20 hour fictitious TPD = 4 full weeks worked
4 / 52 * 4 * 20 = 6.15 h – rounded to 7 h
So you set the employee’s first vacation balance to 7 hours
After another month of work, the employee will be entitled to additional vacation
40 h (March) / 20-hour fictitious TPD = 2 full weeks worked (now there is no need to comply with the minimum number of 80 h/calendar year, because at this time (at the end of March 2024) the employee has already worked this limit).
2 / 52 * 4 * 20 = 3.07 h – rounded to 4 h
You will therefore set an additional vacation balance of 4 hours for the employee, which will be added to the previously entered balance (or reduced by the vacation time used).
You will continue this process in the following months.
