Accrual year and holiday year
You earn holiday pay in the year before the holiday is taken, known as the accrual year. The calendar year in which you actually take your holiday is called the holiday year. If you have not been in employment during the previous year, you are still entitled to take holiday, but you are not entitled to holiday pay.
Holiday pay is paid in June
Holiday pay is paid in June, regardless of when the holiday is actually taken. At the same time, a holiday deduction is made for the number of days on which you will take paid holiday. This is called the holiday settlement.
When you leave your position, holiday pay is paid as a final settlement. This payment is not made automatically. You must contact your local HR adviser for the payment to be processed.
Basis for holiday pay
Holiday pay amounts to 12% of the holiday pay basis.
From the year in which you turn 60, you accrue additional holiday pay of 2.3% of the basis, in addition to ordinary holiday pay, limited upwards to six times the National Insurance basic amount (G).
The holiday pay basis includes everything you have received as remuneration for work (salary, sickness benefit, etc.) in the accrual year. Payments relating to travel expenses, accommodation and holiday pay are not included in the calculation.
The holiday pay basis is shown on the annual statement for the accrual year. Holiday pay accrued from last year and the current year can also be found on your payslips.
Holiday deduction
Full holiday pay accrual
Employees with a monthly salary and full holiday pay accrual will be deducted for the full quota of “Paid holiday”, normally 5 weeks.
Employees over 60
Employees over 60 whose holiday pay basis exceeds six times the National Insurance basic amount (G) will have a reduced quota of paid holiday, as they do not receive full compensation for loss of earnings in the additional holiday week.
New employees who started at UiO in the previous year
New employees who started at UiO in the previous year have accrued holiday pay that covers part of their paid holiday. The “Paid holiday” quota results in a holiday deduction in June. Read more about the number of holiday days and quotas in the self-service portal.
New employees who started at UiO in the current year
New employees who started at UiO in the current year will only have the “Unpaid holiday” quota set up, which does not result in a holiday deduction in June. When this quota is used, a salary deduction will be made as the holiday is taken.
For part-time employees
For part-time employees, the holiday deduction is made on the basis of the “Paid holiday” quota.
Settlement of holiday pay in the June salary
- The holiday settlement is paid on the basis of a one-off calculation in June.
- Holiday is time off without pay. This means that employers who pay 12 monthly salaries must deduct your salary when you take holiday. However, this is not done every time you take holiday, but as a total deduction for the whole year in June, when you are deducted salary for the holiday days you are obliged to take.
- Full holiday (25 working days with a 5‑day working week) amounts to more than one calendar month (approx. 22 working days), so the holiday deduction is normally higher than the monthly salary.
- The holiday pay normally exceeds the holiday deduction. The gross salary in June will therefore normally be higher than one monthly salary when you have full holiday pay accrual from the previous year.
- If you do not have full accrual and therefore have the “Unpaid holiday” quota, you will be deducted for these holiday days as they are taken.
- Holiday pay is paid without tax deduction. An exception applies to additional holiday pay for employees over 60 years of age.
Additional holiday pay for employees over 60
From the year in which you turn 60, you accrue additional holiday pay of 2.3% of the holiday pay basis (limited upwards to six times the National Insurance basic amount). For employees whose holiday pay basis exceeds six times this amount, the additional holiday pay will not fully compensate for the loss of earnings in the extra holiday week. In such cases, you may choose not to take the holiday days that are not covered.
The holiday pay related to the extra holiday week is subject to tax deduction.
Payslip and reconciliation of the June salary
- This is what your June payslip looks like, with explanations (dfo.no).
- See examples of the reconciliation of holiday pay in the June salary.