Free tools · 2026 rates
Vacation pay calculator
Vacation pay is calculated from the average daily earnings over the last 6 months, multiplied by the working days on vacation (section 75 of the Labour Law). The calculator counts working days from the real Latvian calendar, including public holidays.
Vacation pay (gross)
708,70 €
For 10 working days
Average daily earnings
70,87 €
From 6 months of data
Average monthly earnings
1 500,08 €
Section 75 of the Labour Law formula
How it's calculated
- Total pay over 6 months9 000,00 €
- Average daily earnings (÷ 127 days worked)9 000,00 € ÷ 12770,87 €
- Vacation pay (× 10 working days)70,87 € × 10708,70 €
The amount is gross — social contributions and personal income tax are withheld from it just like from salary (calculate in the salary calculator). A four-week annual vacation is usually 20 working days. The same formula also works for compensation for unused vacation when ending employment.
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How it is calculated — examples and rates
How vacation pay is calculated
The figures on this page are computed by the Vadi tax engine using the rates in force on 1 October 2026. The calculation is for information only and does not replace tax advice.
During vacation an employee receives average earnings rather than the regular salary. The method is set by section 75 of the Labour Law and is the same for annual vacation and for compensation for unused vacation.
- Add up the pay for the last six calendar months before the vacation: salary, supplements and bonuses.
- Divide that total by the number of days actually worked in the same period — this gives the average daily earnings. Sick days and vacation days do not count as days worked.
- Multiply the average daily earnings by the number of working days on vacation.
If the employee has worked for less than six months, average earnings are calculated from the time actually worked. In the calculator's detailed mode, enter zero days worked for such months and they will be left out of the calculation.
Annual paid vacation is not shorter than four calendar weeks, not counting public holidays (section 149 of the Labour Law). Vacation pay must be paid no later than one day before the vacation; at the employee's written request it may be paid at another time, but no later than the next pay day (section 69).
The calculator shows the gross amount. To see how much of it is take-home pay, use the salary calculator, adding the month's salary and the vacation pay together. The same average earnings are used for the employer's sick pay. Vadi records vacations in the “Absences” section, and they flow into the payroll calculation automatically.
Vacation pay calculation examples
Stable salary of €1,500, 10 working days on vacation
The vacation starts in October 2026, so the previous six months (April–September) are used. All working days in the calendar were worked.
| Month | Gross pay | Days worked |
|---|---|---|
| April 2026 | €1,500.00 | 20 |
| May 2026 | €1,500.00 | 19 |
| June 2026 | €1,500.00 | 20 |
| July 2026 | €1,500.00 | 23 |
| August 2026 | €1,500.00 | 21 |
| September 2026 | €1,500.00 | 22 |
| Total | €9,000.00 | 125 |
| Calculation step | Amount |
|---|---|
| Pay over six months | €9,000.00 |
| Average daily earnings (÷ 125 days worked) | €72.00 |
| Vacation pay (× 10 working days) | €720.00 |
Varying pay and days not worked, 20 working days on vacation
A bonus was paid in one month; in another the employee was ill for five working days and received a lower salary. Days not worked reduce the divisor, so the average daily earnings do not fall.
| Month | Gross pay | Days worked |
|---|---|---|
| April 2026 | €1,500.00 | 20 |
| May 2026 | €1,500.00 | 19 |
| June 2026 | €1,800.00 | 20 |
| July 2026 | €1,500.00 | 23 |
| August 2026 | €1,200.00 | 16 |
| September 2026 | €1,500.00 | 22 |
| Total | €9,000.00 | 120 |
| Calculation step | Amount |
|---|---|
| Pay over six months | €9,000.00 |
| Average daily earnings (÷ 120 days worked) | €75.00 |
| Vacation pay (× 20 working days) | €1,500.00 |
Vacation pay at different salaries
It is assumed that the salary did not change for six months (April–September 2026) and that all working days were worked. Amounts are gross.
| Monthly gross salary | Average daily earnings | For 10 working days | For 20 working days |
|---|---|---|---|
| €780.00 | €37.44 | €374.40 | €748.80 |
| €1,000.00 | €48.00 | €480.00 | €960.00 |
| €1,500.00 | €72.00 | €720.00 | €1,440.00 |
| €2,000.00 | €96.00 | €960.00 | €1,920.00 |
| €2,500.00 | €120.00 | €1,200.00 | €2,400.00 |
| €3,000.00 | €144.00 | €1,440.00 | €2,880.00 |
Number of working days in each month of 2026
The number of working days affects both the divisor in the average-earnings calculation and how many working days fall within the vacation. The count is for a five-day working week, less Latvian public holidays.
| Month | Working days |
|---|---|
| January | 21 |
| February | 20 |
| March | 22 |
| April | 20 |
| May | 19 |
| June | 20 |
| July | 23 |
| August | 21 |
| September | 22 |
| October | 22 |
| November | 20 |
| December | 20 |
Sources: Labour Law (sections 69, 75 and 149).
Frequently asked questions
How is vacation pay calculated?
The average daily earnings (the last 6 months' pay divided by the days worked) are multiplied by the number of working days on vacation. A four-week vacation is usually 20 working days.
Is vacation pay taxed?
Yes — vacation pay is wages; social contributions (VSAOI) and personal income tax are withheld from it just like from salary. The calculator shows the gross amount.
How are average earnings calculated for fewer than 6 months worked?
You take the calendar months actually worked (the exceptions in section 75 of the Labour Law) — the total pay is divided by the days worked in them.
How much is vacation pay on a salary of €1,500?
If the salary did not change over the last six months (April–September 2026), the average daily earnings are €72.00. Vacation pay for 10 working days is €720.00 and for 20 working days €1,440.00 gross.
When must vacation pay be paid?
No later than one day before the vacation starts — together with the pay for the time worked before the vacation. At the employee's written request it may be paid at another time, but no later than the next pay day.
Are bonuses and supplements included in vacation pay?
Yes. Average earnings are calculated from all pay over the last six calendar months — salary, supplements and bonuses. That is why vacation pay is higher after months with bonuses.
Why does vacation pay per day differ from salary per day?
Because it is calculated from six-month average earnings, not from the current month's salary. Months have different numbers of working days, so the salary per day differs from month to month, while the average daily earnings are the same for the whole vacation.
How is compensation for unused vacation calculated?
With the same formula: average daily earnings multiplied by the unused vacation working days. When employment ends, compensation must be paid for all unused vacation. For example, with average daily earnings of €72.00, 5 unused days come to €360.00 gross.
This calculator is for information only and does not replace tax advice — the final figure is set by the State Revenue Service (VID) in its assessment. The rates are computed by the same engine used in Vadi accounting, and each value is verified against official sources (VID, likumi.lv). If you spot an inaccuracy, write to us.