Basic annual leave is 28 calendar days and accrues in proportion to time worked. Holiday pay is based on the average calendar-day wage: gross pay over the six preceding calendar months divided by the calendar days in that period, minus public holidays. A monthly salary is never divided by working days.
Variables (the formula is shown below the calculator)
basic leave — 28 calendar days per year (TLS). accrual — proportional to time worked, using a year length of 365 or 366 days. reference period — the six calendar months before the leave. average calendar-day wage — gross pay for the period divided by the period's calendar days minus public holidays. holiday pay — average calendar-day wage times the number of leave days.
Two separate questions that are often conflated
The first is accrual: how many leave days the employee has earned. The second is pay: how much those days are worth. They use different calculations and different bases. The calculator reports both separately, because the employer's obligation is likewise twofold.
Months with no work
If the employee did not work during a month of the reference period, that month is excluded in full — both the earnings and that month's calendar days. Otherwise the average would be artificially depressed. If all six months drop out, pay is calculated from the agreed wage.
When the salary has not changed
Where pay stayed the same across the reference period, TLS allows the ordinary salary to be paid during leave (töötasu säilitamine). The calculator shows both figures, because they differ: the average calendar-day method accounts for public holidays and unequal month lengths, retained salary does not.
Scope and exclusions
Applies to basic leave under an ordinary employment contract. It does not cover parental leave, study leave, unpaid leave, contracts for services or authorisation, or management board member agreements. The result is informative — the final amount is confirmed by an accountant.
Examples
€2000/month, 28 days of leave from 01.07.2026
The reference period is January–June 2026: 181 calendar days, of which 8 are public holidays (1.01, 24.02, 3.04, 5.04, 1.05, 24.05, 23.06, 24.06) → 173 days. Gross pay 6 × 2000 = €12,000. Average calendar-day wage 12,000 / 173 = €69.3642. Holiday pay 69.3642 × 28 = €1942.20.
A common error: monthly salary divided by working days
Dividing €2000 by 21 working days and multiplying by 28 calendar days gives €2666.67. For the same employee that is roughly 37% too high, because the divisor is in working days while the multiplier is in calendar days. Both must use the same unit.
The effect of public holidays
At equal gross pay, a reference period containing more public holidays yields a higher daily wage, because the divisor is smaller. January–June 2026 contains eight; a period without holidays would give a lower average calendar-day wage.
Sources
- Employment Contracts Act (TLS) — §55 basic leave of 28 calendar days, holiday pay
- Public Holidays and Days of National Importance Act (PuhadS) — the list of public holidays deducted from the period