Hourly paid jobs often have a lot of flexibility. After all, only the hours actually worked are paid. But what happens in the case of holidays for hourly-paid employees?
Holiday entitlement
By law, employees are entitled to at least four weeks' holiday. This also applies to hourly paid employees. Paid holidays, i.e., the continuation of wages during holidays, are therefore compulsory.
Compensation of holidays by means of a wage supplement
From an administrative point of view, the correct calculation of salary continuation during holidays can be tedious and complicated in the case of irregular employment. For this reason, many companies use holiday compensation instead of continued salary payments during the holidays. The following holiday compensation rates apply:
- 4 weeks holiday: 8.33%
- 5 weeks holiday: 10.64%
The compensations must be indicated separately on the salary statement. Otherwise, the holidays are not considered as paid. Indications such as "including holidays" are not sufficient.
