Example:
Holiday hours are found by finding the holiday percentage (10.17%/24 days, 11.11%/26 days, 11.59%/27 days, 12.07%/28 days, 12.55%/29 days or 13.04%/30 days) of total wages and dividing daytime hourly wages into this result. Daytime hourly wages are found by dividing 159,27 hours for office workers and 167,94 hours for shop assistants into fixed monthly wages. In the example here below, holiday time is calculated for a shop assistant.
- Daytime ISK 450.000
- Overtime ISK 50.000
- Total ISK 500.000
Daytime hourly wages are:
Fixed monthly wages ISK 450.000/167,94 (divisor) = ISK 2,679.53 per hour in daytime.
Holiday hours are:
Total wages 450,000 x 10.17% = 45.765/2.679,53 daytime hourly wages = 17,08 holiday hours.
When the wage earner goes on holiday, his hourly wages have increased to ISK 2,700 e.g. due to wage changes. His holiday hours are then calculated for the year at ISK 2,700 and not at ISK 2,679.53 each holiday hour.
Taxes must be paid of the holiday pay as well as all other fees, as this is a normal wage payment.