Vacation pay questions usually come up in two moments:
- you plan a longer vacation and want to know “will my payslip look weird?”
- you join a company mid-year and you’re unsure how vacation days and vacation pay work in practice
Vacation pay calculations depend on the payroll method and on how your compensation is structured. This guide focuses on the practical inputs and the mental model you need to estimate your vacation period payout.
TL;DR
- Vacation pay is usually based on an average daily gross computed from a recent reference period (many payroll processes use the last 3 months).
- For estimation, you need: reference gross amounts + working days in that reference + number of vacation days.
- Use the calculator for a consistent estimate and keep in mind that exact payroll can vary with allowances, bonuses, and edge cases.
- the Time off estimate
Who this is for
- Employees under CIM who want to understand how vacation pay is computed.
- People negotiating an offer and trying to anticipate how vacation will affect net pay.
- Anyone who sees a different number on the payslip during a vacation month and wants to sanity-check it.
Key concepts (what payroll actually needs)
1) Vacation days vs calendar days
Vacation days are typically taken as working days (Mon–Fri), not calendar days.
So when you say “I’m taking 10 days off”, clarify if that means:
- 10 working days (two work weeks), or
- 10 calendar days (which includes weekends)
To avoid confusion, sanity-check the interval with the working days calculator.
2) Gross-based math (not net-based)
Payroll calculations are usually done using gross amounts, then payroll deductions are applied to determine net.
If you try to estimate from net, you’ll often be off (sometimes by a lot).
3) Which salary components are included
This depends on payroll rules and your compensation structure. In practice, your “reference gross” may include:
- base salary
- some allowances (depending on how they are treated)
Variable bonuses may be treated differently depending on policy and legal interpretation. If you have a large variable component, ask payroll how it’s treated in the vacation pay base.
What you need to estimate vacation pay
You’ll typically need:
- the gross amounts for the reference period used by your payroll (often last 3 months)
- the number of working days in those months
- the number of vacation days you plan to take
Tool: the vacation pay calculator.
Supporting tools: the working days calculator and the net salary calculator (Romania, 2025) (for take-home comparison).
A simple estimation flow (that matches how payroll thinks)
- Compute an average daily gross from the reference period:
- total reference gross / total working days in reference period
- Multiply average daily gross by the number of vacation days.
- Compare the estimated vacation pay with your normal month so you understand the impact.
Important: this is an estimator. Exact payroll may differ based on rounding and on how specific allowances/bonuses are treated.
Worked examples
Example 1: You take a full week off
Assume:
- reference period gross totals: 45,000 RON
- working days in reference period: 63
- vacation days: 5
Average daily gross ≈ 45,000 / 63 ≈ 714.29 RON/day. Estimated vacation pay gross ≈ 5 * 714.29 ≈ 3,571.45 RON.
This number isn’t “extra”. It’s part of how your monthly pay is computed/allocated when you take time off.
Example 2: You take 10 vacation days in a month with fewer working days
A common confusion is: “I worked less days, why is my net different?”
Two reasons:
- month working days differ (February vs July)
- your vacation pay base is computed from a reference period, not from the current month only
Use working-days math to sanity-check: check the working days calculator.
Why your payslip can look “different” in vacation months
Vacation months can show a split between:
- salary for days worked
- vacation indemnity for days off
Even if the total net ends up similar, the breakdown can look unfamiliar. That doesn’t automatically mean something is wrong.
Checklist: questions to ask payroll (if you want to be precise)
- What reference period is used (e.g., last 3 months)?
- Which gross components are included in the base?
- How are variable bonuses treated?
- Are there any company-specific rules (e.g., rounding, special allowances)?
Common mistakes
- Using net instead of gross inputs.
- Ignoring the “working days” denominator and using calendar days instead.
- Assuming every month has the same working hours/days.
- Treating a one-time bonus as guaranteed income in vacation planning.
FAQ
Is vacation pay “extra”?
Usually no. It’s the way your compensation is calculated for the days you are on paid leave. It can make the breakdown look different, but it is not a free bonus.
Can my vacation pay be lower than my normal pay?
Depending on the reference period and your compensation structure, yes, your vacation month can differ. If you have unusual fluctuations or large variable pay, confirm the policy with payroll.
What should I read next?
For continuity, see working days (planning) and overtime (calculation).
