The right to annual paid leave for employees is secured under the Labor Law. The employer must pay the employee who takes annual leave in advance or pay the employee’s wage for the leave period.
So how is the annual leave fee calculated and paid? Here are the details.
Annual Leave Wage Must Be Paid in Advance
The employer must pay the employee’s wage for the leave period before they start their leave. An advance payment can also be made to the employee, but the payment must be made before the leave. The annual leave fee is determined according to the employee’s working period and salary calculation method.
Calculating Annual Leave Wage According to Different Wage Types
The wage that employees receive can be fixed salary or determined by variable methods such as commission, piece rate, profit sharing or percentage method.
The annual leave fee for employees with fixed salary is determined according to the normal salary calculation.
For employees working with commission, piece rate or profit sharing method, the total earnings they have earned in the last year are divided by the number of days they have actually worked and the daily average wage is calculated. This average wage is paid for the annual leave period.
For workers whose wages have been increased, if the worker’s wage has been increased within the last year, the leave fee is calculated by dividing the earnings between the date of the increase and the beginning of the month in which the leave is taken by the days worked during this period.
For workers who work on a percentage basis, if the worker’s wage is based on percentages collected from customers, the leave fee is covered by the employer and is not covered from the amount collected from the percentages.
Wages for Official Holidays Coinciding with the Annual Leave Period
Weekly holidays, national holidays and general holidays coinciding with the annual leave period must be paid separately. These days are not included in the annual leave period and are paid additionally to the worker.
Conclusion
The employer must pay the worker the annual leave fee in advance before the leave.
Wage calculations can be made using different methods depending on the worker’s working system.
The official holiday and weekly holiday fees coinciding with the leave period must be paid separately.
It is legally mandatory for workers to have annual leave rights and to pay leave fees in full.
It is of great importance for employers and employees to know their legal rights regarding annual leave payments in order to prevent possible grievances.
Source: Labor Law No. 4857
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