How this works
The holiday allowance equals, as a rule, one month of pay: base pay plus any pay that is consideration for the specific way the work is performed (e.g. a fixed-hours waiver, night or shift work, and seniority pay when your contract folds it in). Work the whole year and you get that full month. Start or leave mid-year and it is pro-rata — divide the monthly amount by 12 and multiply by the months worked that year. The result is gross: 11% for Social Security and your IRS withholding still come off it.
- 1
Add base pay and the other payments that count
The base is monthly base pay plus any pay that is consideration for the specific way the work is performed (fixed-hours waiver, shifts, seniority pay where applicable). Meal allowance, bonuses and per diems are excluded.
- 2
Apply the year proportion
Full year = one month. Partial year = (base + other payments) ÷ 12 × months worked. That is the gross allowance.
- 3
Take off the deductions
On the gross, 11% Social Security and IRS withholding apply. I show the 11%; IRS depends on your table.
Frequently asked
Does the holiday allowance include meal allowance or bonuses?
No. Article 264(2) calculates the allowance on base pay plus any other pay that is consideration for the specific way the work is performed (e.g. a fixed-hours waiver, night work or shift work). Meal allowance, per diems, variable bonuses and transport subsidy are left out. Seniority pay (diuturnidades) counts when your contract or collective agreement (IRCT) folds it into this base — check your contract or with the ACT.
I only worked part of the year. Do I get the full allowance?
No. In the year you are hired and the year you leave, the allowance is proportional to time worked. The practical rule is to divide the monthly amount by 12 and multiply by the months worked that year. A full year earns one full month.
Is the figure this calculator shows what lands in my account?
No. The calculator shows the gross amount. On top of it come 11% for Social Security and IRS withholding, which depends on your bracket, household and the table in force. So I show the 11% deduction separately and leave IRS to you — I do not make it up.
What are diuturnidades?
They are additions to base pay for seniority or length of service, usually set in a collective agreement. If you have none, leave that field at zero.
Do I get it all at once or spread over the year?
As a rule, it must be paid before the holiday period starts. With your written agreement, the employer may pay it in twelfths — one twelfth per month, added to your salary. The annual total is the same; only the timing changes.
DISCLAIMER
An estimate for standard employees, based on art. 264 of the Labour Code. The figure shown is gross; the 11% Social Security deduction is the employee share. IRS withholding is not included because it depends on your bracket, household and the table in force — I do not invent it here. Collective agreements, fixed-hours waivers and special cases can change the calculation base. Not legal or tax advice.