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Calculation examples of holiday pay in June salary

  • The deduction of salary for each holiday day is calculated as the annual salary divided by the number of work days per week multiplied by 52. The annual salary is calculated on the basis of the June salary. For employees in a full-time position with a 5 day work week the daily salary amounts to the annual salary divided by 260 (5 days x 52 weeks).
  • Holiday pay is taxed, but tax is not deducted in June. Your tax Card is designed to deduct more tax during the rest of the year in order to allow no tax deduction on holiday pay and half tax rate in December.

Employee under 60: 5-day work week, full accrual

NN has a monthly salary of NOK 30.000 and accrued holiday pay of NOK 38.000. NN works 5 days per week and is deducted for full paid holiday leave, 25 work days.

Gross monthly salary for June NOK 30.000
Holiday pay (12 % of the accrual basis) NOK 38.000
Deduction for 25 days «Paid holiday leave»
(monthly salary in June x 12 months x 25 days / 5 days x 52 weeks)
= 30.000 x 12 x 25 / (5 x 52))
NOK 34.615
Gross salary in June NOK 33.385

Employee under 60: 60% position, full accrual

NN works 3 full days per week. NN has a monthly salary of NOK 24.000 (40.000 x 60 %) and accrued holiday pay. Full vacation is 5 weeks with 3 days per week, i.e. 15 days «Paid holiday leave».

Gross monthly salary for June NOK 24.000
Holiday pay (12 % of the accrual basis) NOK 29.000
Deduction for 15 working days holiday
(monthly salary in June x 12 months x 15 days / 3 days x 52 weeks
= 24.000 x 12 x 15 / (3 x 52))
NOK 27.692
Gross salary in June NOK 25.308

Employee over 60: 5-day work week, full accrual, with limitation of accrual basis above 6 G

NN has a monthly salary of NOK 60.000 and accrued holiday pay of NOK 72.000 + NOK 13.800 for the extra holiday week. According to section 10.3 of the Holidays Act, the accrual basis for the extra week must not exceed 6 G (the National Insurance Scheme’s basic amount). As of 01.05.2016 6 G was NOK 555.456 and is used in the calculation example.

NN has a full quota of 25 ordinary holiday days and 4 extra days of «Paid holiday leave».
In addition, NN has 1 day of the quota «Unpaid holiday leave».

Gross monthly salary for June NOK 60.000
Holiday pay (12 % of the accrual basis) NOK 72.000
Holiday pay above 59: 2,3 % of the accrual basis is NOK 13.800, but the maximum amount is 2,3 % of 6 G (i.e. as of 1.5.2016 2,3% of NOK 555.456) NOK 12.775
Deduction for 25 days of ordinary holiday
(monthly salary in June x 12 months x 25 days/ 5 days x 52 weeks = 60.000 x 12 x 25 / (5 x 52))
- NOK 69.231
Deduction for 4 extra holiday days with pay (60.000 x 12 x 5 / (5 x 52)) - NOK 11.076
Gross salary in June NOK 64.468

Salary deductions for «Unpaid holiday leave» are made as such holidays are taken

Employee with 5-day work week, reduced accrual

NN has a monthly salary of NOK 30.000 and accrued holiday pay at UiO of NOK 15.000. NN has a quota of 15 days «Paid holiday leave» and 10 days «Unpaid holiday leave».

Gross monthly salary for June NOK 30.000
Holiday pay (12 % of the accrual basis) NOK 15.000
Deduction for 15 days paid holiday leave
(monthly salary in June x 12 months x 15 days / 5 days x 52 weeks = 30.000 x 12 x 15 / (5 x 52))
- NOK 20.769
Gross salary in June NOK 24.231

Holiday pay is not taxed, but salary is. In this case, NOK 9,231 will be taxed (NOK 30,000 – NOK 20,769).

Salary deductions for «Unpaid holiday leave» are made as such holidays are taken

Employee with a 5-day work week, no accrual

No holiday pay has been earned at UiO and there is no holiday payment to be made this year. NN may have earned holiday pay from another employer.

NN has a quota for 25 days «Unpaid holiday leave». Salary deductions for «Unpaid holiday leave» are made as such holidays are taken.

 

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Published Apr. 28, 2015 2:56 PM - Last modified Apr. 29, 2019 9:50 AM